2026 brings good news for millions of taxpayers in the U.S. The IRS (the government agency that handles taxes) has confirmed the tax refunds will be higher during the tax season of that year. This is happening because of several fiscal laws adjustments, benefit changes, and tax brackets. This is why it is important to understand what’s changing, who is benefiting from this, and how you can properly claim the refund when it’s time. So, let’s see how we can do all of this.
Changes in 2026 taxes
The IRS announced several changes that will be applied in 2026. These changes aim to relieve the economic burden of many homes and help families, especially dealing with the higher prices due to inflation. The main changes are the following:
- New tax brackets adjusted for inflation: The tax brackets will be updated to match increases in the cost of living. This means that many workers will pay less in taxes, because their income will be taxed at lower rates.
- The standard deduction will increase: The standard deduction is the amount you subtract from your income before taxes are calculated.
- In 2026, the standard deduction will increase to: $16,100 for single filers and about $32,200 for married couples filing jointly. This means people will pay less to the IRS, which leads to higher take-home pay and larger refunds.
- The Earned Income Tax Credit (EITC) will expand: The EITC is a benefit for working individuals and families, especially those with children and those with lower or moderate incomes. In 2026, this credit will be larger, providing more financial support.
- Changes in withholding during 2025: During 2025, many companies will withhold more taxes from workers’ paychecks because IRS tax tables will be updated later than usual. This means that when people file taxes in 2026, they will discover that they paid more than necessary. As a result, refunds will be larger.
All of these changes show the effort to economically help American homes.
Why could refunds increase in 2026?
The 2026 tax refund will increase mainly because of two reasons:
- More taxes will be withheld from paychecks in 2025, which the IRS will return in 2026.
- Deductions and tax credits will increase, which means taxpayers will keep more of their income.
This means that millions of taxpayers will experience an increase in benefits like the child tax credit and the EITC. In some cases, these credits can generate an additional refund, even if the person didn’t pay a lot of taxes during the year. The goal of these measures is to help families have more capacity to save money, pay bills, or face essential expenses.
How to claim your IRS refund in 2026?
If you are expecting a refund in 2026, you should follow these steps to avoid any delay:
| Step | Why It Matters |
| File your tax return early | The sooner you file, the sooner the IRS sends your refund. |
| Check your withholding information | Make sure your tax and personal details are correct. |
| Claim all eligible tax credits, especially EITC and child tax credit | This ensures you receive the full refund amount you qualify for. |
| Use direct deposit | It is the fastest and safest way to receive your refund from the IRS. |
| Keep important documents like W-2s, 1099s, and proof of income | This prevents errors that could delay your refund. |
So…
2026 will be a great year for taxpayers in the U.S. since all these changes announced by the IRS will make refunds to be higher. Basically, you will have a chance to plan your budget in a different way that can benefit your economy.