Tax refunds are up over 10 percent this year, on average, as tens of millions of Americans take advantage of the “No Tax on Tips” and “No Tax on Overtime” provisions, among others, in the “Big Beautiful Bill.”
“As of March 27, IRS filing season statistics show the agency had issued nearly 63 million refunds, with a cumulative total of $221.7 billion refunded. The cumulative refund amount was up 13.6% over 2025, while the average refund amount was up 11.1% over last year. On average, taxpayers are receiving $3,521 back this year,” Reuters reported.
The White House noted that Americans earning $15,000 to $80,000 per year are receiving a 15 percent tax cut on average.
More than 5.5 million Americans have claimed “No Tax on Tips” so far, with an average deduction of over $7,100, while over 25 million have claimed “No Tax on Overtime,” with an average deduction of over $3,000.
Raj Aman, who runs a bar attached to a golf course in New York, told the New York Post that “No Tax on Tips” has made it far easier to find employees.
“Three years ago, I couldn’t get any servers or bartenders,” Aman explained. “This year, we have people calling us that said, ‘Do you have a job opening?’ And we’ve already, for the start of the season of the golf course, we’ve already interviewed over 85 people from zero.”
“So basically, everybody wants their tips not being taxed,” Aman said. “They’re making a lot more money than they would ever imagine.”
Claire Kerrigan, a bartender at AJ’s Bar and Grill, called the tax cuts “great,” explaining that she did not have to worry about putting a certain amount of her tip income aside to cover taxes, but could spend it.
“I’m not going to be putting it aside, like, ‘Oh, I have to pay my property taxes with it,’ or, something like that. It’s really, truly a big help,” Kerrigan said.
Sergio Esposito, former president of the Yorktown Chamber of Commerce and current town councilman, told the New York Post, “There’s going to be more money out there. People are going to be out there. They’re going to be spending more. They might go out to dinner an extra time or two. They might go out and buy something that they ordinarily couldn’t afford.”
To highlight the benefit that the “No Tax on Tips” policy was having for taxpayers, Trump received a DoorDash delivery at the White House from driver Sharon Simmons.
She delivered McDonald’s to the president at the Oval Office. Simmons earned $11,000 in tips last year, all of which was tax-free, the White House said.
The White House just released more details on the DoorDash Grandma, who just delivered an order of McDONALD’S to President Trump in the Oval Office
Sharon Simmons from Arkansas:
– Is grandma of 10
– Started dashing in 2022
– Completed 14,000 DELIVERIES
– Has saved $11,000 in… pic.twitter.com/bmaK67SIGv— Nick Sortor (@nicksortor) April 13, 2026
The IRS pointed out that the maximum deduction for “No Tax on Tips” is $25,000, and for “No Tax on Overtime,” the maximum amount is $12,500, or $25,000 for joint filers.
The deduction phases out for taxpayers with income over $150,000, or $300,000 for joint filers.
Other noteworthy deductions contained in the “Big Beautiful Bill” are “No Tax on Car Loan Interest” for American-made cars, up to $10,000 per year.
Also, the standard tax deduction increased by $6,000 — $12,000 for joint filers — for individuals 65 and over, meaning essentially “No Tax on Social Security” income. The deduction phases out for those earning over $75,000, or $150,000 for joint filers.
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