Tax refunds are up this year, with the average refund through February 13 reaching $2,476 – a 14.2% increase from $2,169 at the same time in 2025. While the total number of tax returns received is down 2.6% compared to last year, the larger refunds are prompting Americans to consider their options for utilizing the extra funds.
A Boost for Consumers
The increase in refunds comes at a time when many Americans are facing financial pressures due to elevated prices and a slowing job market. Analysts at Bank of America suggest that these higher refunds could provide a tailwind for consumers, particularly those with lower incomes.
How Americans Plan to Use Their Refunds
The majority of Americans are prioritizing essential expenses with their tax refunds. Over half, 52%, plan to use the money to pay bills like rent and utilities, while 44% intend to spend it on groceries and essential goods. Paying off debt is also a popular choice, with 37% planning to use their refund for this purpose.
Among those focused on debt reduction, over half – 56% – are specifically targeting credit card debt accumulated during the holiday season. Other uses for refunds include adding to savings accounts (22%) and covering home improvement projects or repairs (20%).
Notably, only 8% of Americans plan to spend their refund on luxuries, with 37% of those planning to treat themselves intending to buy novel clothes.
Frequently Asked Questions
What is the average tax refund this year?
The average tax refund through February 13 was $2,476.
What are Americans planning to do with their tax refunds?
Most Americans plan to use their refunds to pay for essentials, such as bills (52%) and groceries (44%).
How can I receive my tax refund faster?
The IRS states that combining direct deposit with electronic filing is the fastest way to receive a refund, typically within less than 21 days for a flawless return.
How will you prioritize using your tax refund this year?
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