Tax refunds were a little bigger for many Americans this year, but that doesn’t mean they were splurging.
A new study commissioned by TaxSlayer and conducted by Talker Research found that, while refund amounts increased year over year, most taxpayers continued to put that money toward everyday necessities like bills and groceries. The nationwide survey polled 2,000 U.S. taxpayers and highlights how Americans are navigating higher refunds amid ongoing financial pressures.
Survey participants reported an average tax refund of $2,825 this year, a significant increase compared to $2,300 last year. And 98% of those who had already spent their refund said a portion of those dollars was directed toward essential expenses.
Tax refund amounts are on the rise
The IRS reports that, as of April 17, the average federal tax refund for the 2026 filing season was $3,275 – an 11.3% increase from 2025.
Indeed, nearly four in 10 respondents to our survey (39%) said they received a larger refund this year than they did last year. Looking back further, 32% said their 2024 refund was higher than what they received in 2023. This increase is reflected in how people felt when their refunds arrived: 63% said they were “happily surprised” by their refund amount this year, up from 62% last year and well above the 40% reported in 2024.
What’s driving those bigger refunds? Among those who received more money back, respondents cited:
- Working more hours (35%)
- Adjustments to deductions and withholdings (32%)
- Pay raises (20%)
Americans continue to spend their tax refunds on essentials
Despite their higher refund amounts, spending habits have remained largely unchanged.
The study found that 71% of taxpayers have already spent their refund or have made plans for it – another increase from last year. Of those who’ve used their refund, an overwhelming 98% spent at least some of it on necessities.
Nearly half of the respondents (49%) said they spent all their refund money on essential expenses.
The most common uses included:
Paying monthly bills (59%)
Groceries and other essential goods (54%)
Paying down credit card debt (26%)
By contrast, discretionary spending remained limited. Only 18% reported using their refund on non-essential purchases, such as new clothes (43%), entertainment (28%), or fine dining (25%).
More than half of taxpayers believe recent tax law changes affected their refunds
The survey also explored how taxpayers feel about recent tax law updates, including provisions tied to the One Big Beautiful Bill Act (OBBB).
Most respondents (83%) said they were impacted in some way after filing their taxes this year, with 29% reporting major or significant effects. More than half (58%) believe at least one OBBB provision influenced their refund amount.
Asked which provisions were most impactful, respondents pointed to:
- Overtime income deduction (16%)
- Senior deduction (14%)
- Increased child tax credit (12%)
- Tip income deduction (7%)
Opinions on the overall impact of the OBBB were mixed. While 43% believe the legislation increased their refund, 34% think it raised how much they pay in taxes. Others felt it decreased their refund (17%) or lowered the amount they owe (14%).
Methodology
Talker Research surveyed 2,000 U.S. adults who received any type of tax refund this year and have internet access. The online survey was commissioned by TaxSlayer and conducted by Talker Research from April 15–20, 2026. The full questionnaire is available here.
