US Taxpayers May See 'Record Refund Season' In 2026 Over Trump's 'Big Beautiful Bill': Report

Certain taxpayers may be in for a pleasant surprise next year, as retroactive tax changes introduced under President Donald Trump’s July legislation could lead to significantly larger refunds in 2026.

The law, dubbed the “big beautiful bill,” includes expanded deductions and new tax breaks for 2025 filings, but with IRS withholding tables yet to be updated, many workers are currently overpaying, a CNBC report said.

Citing a separate note from investment bank Piper Sandler CNBC wrote, “a record tax refund season in 2026,” with middle and upper-income households likely to benefit the most. An estimated $91 billion of tax relief could arrive between February and April 2026, with $59 billion paid via refunds and $32 billion from lower taxes owed, according to the note.

Another report from J.P. Morgan Asset Management in August also predicted higher tax refunds for some filers based on IRS tax withholding tables staying the same, as per CNBC.

On July 1, the US Senate passed US President Donald Trump's tax and spending bill. The package, informally known as the “One Big Beautiful Bill”, consists of $4.5 trillion in tax cuts and $1.2 trillion in spending cuts. It also in entirety includes president's legislative agenda in a single package, reported Bloomberg.

The tax cut bill would avoid large tax increase for individuals at the beginning of next year when the 2,817 Trump tax cuts expire. It would also permanently extend some partly expired business tax breaks this according to the president would contribute to economic growth.

Additionally, the bill, at President Trump's request, adds new tax breaks from tips, car loans and overtime work. It also expands the tax breaks for parents and seniors.

The One Big Beautiful Bill Act, or the Big Beautiful Bill, is a statute passed by the 119th United States Congress containing tax and spending policies that form the core of US President Donald Trump's second-term agenda.