Survey: How Do Americans Plan to Use Their 2026 Tax Refund?

Saving Tax Refunds Broadly Popular Again in 2026

While it might be a stretch to claim that there were many happy returns filed this spring, there were at least some. According to Experian's survey, most consumers expecting a refund say they're mostly planning to use their tax refunds the same way as last year. About 40% said they plan to either save or invest their tax refund, with an additional 20% planning to pay off at least some of their debts with it.

Question: How do you plan to use your tax refund?

Although saving tax refunds was the most-cited likely use by all income groups, other uses saw more variation by income. Consumers in households earning less than $50,000 annually were more likely to say they would use tax refunds for everyday expenses. Consumers with annual household incomes between $50,000 and $100,000 annually indicated they were more likely to lean into paying down debt. Finally, consumers in $100,000-plus households showed more interest in investing their refunds.

Question: How do you plan to use your tax refund? (Segmented by income)

Most Taxpayers Still Tightening Their Belts Despite Larger Average Refunds

When we asked taxpayers last filing season how their spending habits have recently changed, most said they were spending less on something, with less than 20% of consumers not cutting back at all. Despite so much having changed over the past year, however, spending intents appear to be little changed.

Question: Which types of spending, if any, have you cut back on in the past six months?

When we asked the same question in early March, we received replies in nearly identical proportions as last season. Bad news for "dinner and a movie" fans: Most consumers are cutting back most on the "extras" first, with dining out and entertainment most likely to be more budget bound in 2026.

One survey respondent put it this way: "I am trying to eat more at home and cut back on eating out because it has gotten so expensive."

That was a typical sentiment expressed by taxpayers this year. Even the at-home versions of restaurant food and cinema—groceries and streaming service subscriptions—are getting attention from consumers as something they'll be spending less on.

Online Filing Both Appreciated, Resented by Taxpayers

"It's messed up that lobbyists from big companies have almost forced us to use their products to file our taxes and many people have to pay them to use them," reports one filer. Still, others are happy to be walked through a thicket of tax complexities.

Also, since we're asking in the middle of filing season, most of those reporting may be incentivized to file early if they're receiving refunds. So far, few interruptions have been reported by taxpayers about their returns being processed and refunds issued.

For some, tax refunds can't come soon enough. "I was laid off in September and have not been able to get hired for another job so I filed my taxes as early as possible to get my refunds to help with bills," notes one early filer this year.

Slightly Larger Returns Aren't Changing Most Taxpayers' Plans

Some observers were expecting a modest but perceptible economic boost from larger tax refunds this year—a side effect of even more consumers overwithholding payroll taxes last year than usual, according to industry analysis.

And based on preliminary data from the IRS, the larger refunds are appearing. Refund amounts are highly individual, but through early March the average tax refund for 2025 taxes of $3,676 was 10% larger versus the 2024 tax filing season of $3,324, according to IRS data. So far, nearly three-fourths of filers—about 43 million of 59 million processed returns—have received refunds.

But based on the similarities between this year's and last year's responses, few taxpayers seemed to notice—at least not enough to change their plans from prior years. And since overwithholding will likely be a one-time event due to federal tax changes last year, refunds in Spring 2027 may drift lower. But by then, priorities for taxpayers may have shifted from saving and paying down debt to other priorities.