The US Internal Revenue Service collected USD 5.6 trillion in taxes in fiscal year 2026, while total refunds increased by more than 20%. The agency also reported wider use of digital services, stronger fraud prevention and the rollout of new tax benefits under the Working Families Tax Cuts.
The US Internal Revenue Service (IRS) has published a report on 29 October 2026 highlighting its performance in fiscal year 2026, including tax collection results, refund processing and the delivery of new tax benefits to working families.
The agency credited the Working Families Tax Cuts, signed into law by President Donald J. Trump, for refunds that reached more people and arrived faster than ever.
The IRS collected USD 5.6 trillion in taxes in FY 2026. That is nearly 5% more than the year before, and it accounts for most of the money that funds federal government operations.
Average tax rates also fell. Based on individual returns filed through mid-July, the average federal income tax rate dropped for every income category for Tax Year 2025. The overall rate fell to 12.6%, down 4% from 2025.
IRS Chief Executive Officer Frank J. Bisignano said the tax cuts form the base of the administration’s economic agenda. He said the agency is moving toward a digital-first model that improves collections and protects privacy.
Refunds also grew sharply during the filing season. The total amount of refunds claimed rose 17%, and the average refund grew 11%. About 90% of electronic filers received their refunds in less than 21 days. Total refunds paid out climbed more than 20% from 2025 to 2026.
Better service for taxpayers
Taxpayers relied more on IRS digital tools in 2026. IRS.gov logged more than 954 million visits, and taxpayers ran nearly 469 million Where’s My Refund? status checks.
Individual Online Account users reached about 37.6 million, a 34% increase. Those accounts recorded 224 million logins. Payments made through them rose 57% to more than USD 133.6 billion.
Tax Professional Account users grew 57% to 513 thousand, and payments through Business Tax Accounts jumped nearly 250% to USD 726.6 million.
The IRS also launched a new mobile app. More than 140,000 people downloaded it in the first five days, and more than two-thirds of them signed in with authentication to use a personalised experience.
Direct deposit refunds rose 12% this filing season. The agency pointed to Executive Order 14247, which calls for ending paper checks to cut costs, speed up payments, and fight refund fraud. Through its Zero Paper initiative, the IRS converted paper returns into digital data. More than 90% of Form 940 returns and more than 80% of Form 941 returns were processed electronically.
Stronger protection against fraud
The IRS protected about USD 38 billion in tax revenue from identity theft refund fraud in FY 2026. It worked with state tax agencies and private companies through the Security Summit to spot fraudulent returns and share information about new scams.
The agency also ran public awareness campaigns, including National Tax Security Awareness Week and the Protect Your Clients, Protect Yourself campaign. It improved its fraud referral system and added an online reporting option. Taxpayers can report suspected fraud or tax evasion by selecting the Report Fraud button on the IRS.gov homepage or by visiting IRS.gov/submitatip.
Trump Accounts
The Working Families Tax Cuts also created Trump Accounts, individual investment accounts for children under 18 that are designed to grow with the US economy. Nearly 70 million accounts are now open, and 27 million have received funds from families, friends, donors, and the U.S. government.
The government contributes USD 1,000 for each child born between 1 January 2025 and 31 December 2028. The IRS is promoting the accounts to taxpayers and tax professionals.
