Will Your 2026 Tax Refund Be Bigger? Here’s What to Know About the New Rules
If you’ve been hearing rumblings that tax refunds may look different this coming year, you’re not imagining it. Several changes in the 2025 tax law are set to roll into effect, and they’ll impact the returns you file in early 2026. The good news? For many households, these shifts could mean a bigger refund — or at least a little more breathing room. But like most things involving taxes, the details matter.
Let’s break down what’s actually changing and what it means for the average consumer.
A Bigger Standard Deduction = More Money Back for Many Households
One of the biggest updates going into 2026 is the increase in the standard deduction. For taxpayers who don’t itemize (which is most people), this is a win. The standard deduction is rising to roughly $15,750 for single filers and $31,500 for married couples filing jointly. Higher deduction = less of your income taxed = potential for a larger refund or a smaller bill.
If you’re a person who typically files early so you can put your refund toward a project, a debt payoff, or even just a little financial reset, this is a change worth celebrating.
Expanded Credits Could Boost Refunds Even More
Several credits are also expanding, especially for families. While every household’s situation is different, families with children, dependents, or adoption-related expenses may see a meaningful bump. Even workers with irregular income — like tipped employees or those who pick up overtime — may find that new rules help them keep more of their hard-earned money.
Refunds May Arrive Faster — But Only If You’re Set Up Correctly
Direct deposit is becoming the primary way refunds will be delivered going forward. Paper refund checks are being phased out, which means if you’re still expecting a check to show up in your mailbox, now’s the time to make a change.
Setting up direct deposit is quick and easy — and it saves you the headache of wondering when that check will show up. Plus, refunds sent electronically tend to arrive much faster, and the funds are immediately available once they hit your account. Just talk to your friendly local community banker, and they will help get you all set up!
A Bigger Refund Isn’t Automatically a Win… But It Can Be
A larger refund feels great, but it also means you gave the government more money than you needed to throughout the year. If you consistently get big refunds, consider adjusting your withholding so more of your paycheck comes home with you each month.
But if you like your refund — because it’s a built-in savings plan you can count on — there’s nothing wrong with that either. The key is to be intentional: what will you do with that extra boost this year? Pay down debt? Build an emergency fund? Start a project you’ve been putting off? Now’s the perfect time to make a plan.
Becky Buhr
EVP of Retail Banking
Bank of Franklin County
