The Internal Revenue Service collected a record $5.6 trillion in taxes in fiscal year 2026, a 5 percent increase from the prior year, while processing refunds faster and in larger amounts than ever before, the agency said. The average federal income tax rate paid by taxpayers fell to 12.6 percent for 2025 returns filed through mid-July, down 4 percentage points from the prior year.
The total dollar amount of refunds claimed increased 17 percent over the prior year, and the average refund rose 11 percent, according to the IRS. About 90 percent of filers who submitted returns electronically received their refunds in less than 21 days. The total amount of refunds distributed increased over 20 percent from 2025 to 2026.
Digital services drove much of the acceleration. IRS.gov received more than 954 million visits in 2026, and taxpayers conducted nearly 469 million "Where's My Refund?" status checks. Individual taxpayers opened approximately 37.6 million online accounts—a 34 percent increase from the prior year—with 224 million total logins. Payments made through IRS Online Accounts increased 57 percent, reaching more than $133.6 billion.
The IRS launched a mobile app in 2026, which received over 140,000 downloads within its first five days, with about two-thirds of users choosing a personalized authentication experience. The agency also reported protecting approximately $38 billion in tax revenue from identity theft refund fraud during the fiscal year through partnerships with state tax agencies and private sector companies.
The IRS expanded a savings program for children called Trump Accounts, investment accounts designed to build long-term savings. Nearly 70 million Trump Accounts are now open, with 27 million having received funds from families, friends, donors, and the federal government, which contributes $1,000 to each child born between January 1, 2025, and December 31, 2028, according to the IRS.