IRS reports record $5.6 trillion in tax collections for fiscal year 2026

The Internal Revenue Service reported record tax collections of $5.6 trillion during fiscal year 2026, marking a nearly 5% increase from the previous year. This total includes revenue from individual income, employment, and corporate taxes.

Despite the rise in total collections, the average federal income tax rate declined to 12.6%, a 4% decrease from the prior year. The IRS attributed this decline to provisions within the Working Families Tax Cuts legislation.

Taxpayers also saw an increase in refunds, with the average refund rising by 11% and the total amount of refunds claimed increasing by 17%. The agency noted that approximately 90% of taxpayers who filed electronically received their refunds in less than 21 days. Additionally, the IRS reported expanding its digital services, with IRS.gov recording over 954 million visits.