Bessent says taxpayers will get ‘gigantic’ tax refunds in 2026

Treasury Secretary Scott Bessent says tax-paying Americans will “have a gigantic refund year in the first quarter,” largely due to President Donald Trump’s One Big Beautiful Bill Act (OBBBA).

Speaking on the All-In Podcast, Bessent, who is also the acting commissioner of the Internal Revenue Service (IRS), expects households to receive refunds of $1,000-$2,000. He says the tax provisions in the OBBBA will apply to people who haven’t changed their withholdings.

Echoing Bessent’s forecast, data from the nonpartisan Tax Foundation estimates that the average refund could rise to $3,800, up from the $3,052 average seen last year.

Key contributors to these savings include the increased child tax credit, the state and local tax (SALT) deduction cap, and new deductions for auto loan interest, tips, and overtime pay.