US Tax Day 2026: Trump admin says millions used ‘no tax on tips,’ overtime deductions, average refunds at $3,462

White House press secretary Karoline Leavitt and Small Business Administration administrator Kelly Loeffler listen as Treasury Secretary Scott Bessent speaks with reporters in the James Brady Press Briefing Room at the White House, Wednesday, April 15, 2026, in Washington. (AP Photo/Alex Brandon)

The Trump administration used Tax Day on Wednesday to highlight widespread uptake of new tax benefits under its Republican tax and spending law, releasing figures showing tens of millions of Americans have already benefited from expanded deductions and exemptions.

According to a Treasury official, more than 53 million tax filers claimed at least one deduction under the new provisions this filing season.

Breakdown of key tax benefits claimed

-6 million taxpayers claimed the “no tax on tips” provision

-21 million taxpayers benefited from overtime tax deductions

-30 million older Americans used enhanced senior deductions

-Millions more accessed additional reliefs, including exemptions on certain car loan interest and child savings accounts (“Trump Accounts”)

Refunds show increase

The Internal Revenue Service reported that the average tax refund stands at $3,462, up about 11% ($350) from last year’s $3,116.

Treasury officials also said refunds are up 24% compared with the four-year average before President Donald Trump took office.

The White House has sought to promote the tax cuts as a key economic achievement ahead of the midterm elections, though the message has been partly overshadowed by inflation concerns and higher fuel prices linked to global tensions.

Political divide over economic impact

Republicans emphasized the scale of tax relief, with House Speaker Mike Johnson highlighting “lower taxes and bigger refunds” for workers, seniors, and small businesses.

Democrats, however, argued that economic pressures remain significant, pointing to inflation and high living costs. They also criticized federal spending priorities, citing military operations linked to the Iran conflict.

IRS restructuring and oversight concerns

The 2026 tax season also comes amid major changes at the IRS, which has reduced its workforce by 27% over the past year following restructuring efforts under the Department of Government Efficiency.

(With AP inputs)

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