Tax season just flipped the script for millions of Americans.
New data shows refunds are jumping fast in 2026, with over 53 million taxpayers cashing in bigger checks thanks to reforms tied to Donald Trump and his signature “One Big Beautiful Bill.”
The headline number is hard to ignore. The average refund hit $3,462, marking an 11.1% increase from last year. Compared to prior years, totals are up 24%, signaling one of the biggest refund boosts in recent memory.
So what changed?
The bill introduced worker-focused deductions that directly reward income many rely on most. That includes tax-free tips, tax-free overtime, and expanded write-offs for seniors and car loans. For service workers and hourly employees, this is not small change. It is a meaningful shift in take-home pay.
Real-world impact is already showing up.
Workers in restaurants, hospitality, and delivery roles are reporting refunds that tripled or even hit $7,000, compared to past years where they often owed money instead. One waitress said her refund jumped from around $1,000 to $4,000, while others are using the extra cash for family expenses, debt, and travel.
Even workers outside tipping industries are seeing gains.
A New Jersey couple working overtime-heavy jobs reported an extra $2,000, which they plan to put toward their mortgage. Others say this is the first time tax season actually worked in their favor.
According to Scott Bessent, the biggest driver is the “no tax on overtime” policy. About 25 million Americans claimed it, with an average deduction of $3,100. Meanwhile, 6 million workers claimed tip deductions, averaging $7,100.
Seniors are also benefiting, with roughly 30 million claiming enhanced Social Security deductions, averaging $7,500.
The broader message is clear.
This policy aims to reward work directly by letting people keep more of what they earn, especially in industries built on tips and long hours. Supporters say it is long overdue. Critics argue the long-term impact still needs scrutiny.
But for now, the immediate effect is undeniable.
More money is landing in bank accounts, and for millions of Americans, tax season suddenly feels like a win instead of a burden.