Rep. Kelly, Ways & Means Chairman Smith: Big, Beautiful Success Story: 2026 Tax Refunds Projected to be Largest Ever

WASHINGTON, D.C. – Tax filers could expect an extra $1,000 bump to their tax refund next year, in what could be a record-breaking tax refund season, according to recent analyst projections.

In total, the Working Families Tax Cuts will give American taxpayers $191 billion in net new tax relief in 2026. This level of tax relief will go a long way in helping working families make ends meet.

"The Working Families Tax Cuts puts more money in the pockets of Pennsylvania workers and families. Now, these additional savings will soon become a reality," said Rep. Mike Kelly, Chairman of the Ways & Means Subcommittee on Tax. "Not only did the Working Families Tax Cuts prevent a tax increase, but it is also further investing in Pennsylvanians both for today and for years to come."

“Millions of Americans will see the working families tax cuts put more money in their pockets when they file taxes this coming spring. In our tax relief bill, Republicans wasted no time and ensured that we cut taxes on income earned this year. Americans voted to have more money in their wallet, and that’s exactly what President Trump and Republicans delivered,” said Ways and Means Committee Chairman Jason Smith (MO-08). “Tax refunds are a big deal for a lot of American families. It covers home repairs, health care, or summer vacations; all of which became completely unaffordable under Joe Biden. Thanks to the working families tax cuts, more Americans will have greater financial security and ability to provide for their future.”

For the 2026 tax filing season, taxpayers are expected to take home an additional $91 billion in refunds and keep an additional $30 billion in their paychecks from reduced withholdings – according to a new study from Piper Sandler based on Joint Committee on Taxation (JCT) data. 

The Working Families Tax Cuts put more money back into the American people’s pockets families in multiple ways:

• Makes the doubled standard deduction and lower tax rates from the 2017 Trump tax cuts permanent.
• Further increases the Standard Deduction by up to $1,500 per family in 2025.
• No tax on tips
• No tax on overtime
• No tax on Social Security
• Boosts the Child Tax Credit to $2,200 and indexes its value to inflation.
• Expands access to child care and makes the paid leave tax credit permanent.
• Expands 529 savings accounts to help families choose education that best fits their needs.
• Expands health savings accounts so American families control their own health care.

Learn more about the Working Families Tax Cuts here.

Read more: Check out Rep. Kelly's op-ed about the Working Families Tax Cuts in the Pittsburgh Tribune-Review published in July.