Top 15 Tax Software Picks for 2025 plus 7 Top Free Filing Solutions

Overall

Price

Annual Discount

No

Promotion

Start Free

TurboTax is well-known for efficiently handling straightforward tax returns. It provides a free filing option and an intuitive interface that makes it easy for anyone, even with little experience, to complete their personal taxes easily.

Key Features:
– Navigation System: Provides step-by-step guidance by asking simple questions, making it easier for new users to complete their taxes accurately.
– In-Depth Articles: A comprehensive library of articles answers common questions and offers helpful information for users.
– TurboTax Live: Enables users to share their screens and have their returns reviewed by CPAs or enrolled agents. Users can also choose to connect with a CPA instantly, with plans ranging from Basic live at $49.99 to Self-employed live at $169.99.
– Max Assist and Defend: Offers optional audit protection for complex tax situations at an additional fee of $44.99.

Pros:
– The interview-style questionnaire makes data entry engaging and thorough.
– On-screen support helps users who encounter difficulties during the filing process.
– Both federal and state tax returns can be filed for free in certain cases.
– The web-based version eliminates the need to download software, making it accessible from anywhere.
– Its user-friendly design simplifies navigation and process management.
– Users can import W-2 forms directly if provided by TurboTax partners or simply take a picture with their smartphone to file quickly.
– The Expense Finder helps freelancers and small business owners identify deductible expenses from last year’s transactions.

Cons:
– Pricing varies across different platforms, leading to potential confusion.
– It ranks among the more expensive tax software options available.
– The total cost isn’t clear until the entire return is prepared and submitted.

Pricing:
TurboTax has four plans:
– Self-Employed: $119.99 plus $39.99 per state
– Premier: $79.99 plus $39.99 per state
– Deluxe: $59.99 plus $39.99 per state
– Free Edition: free for federal, $29.99 for each state

2. Liberty Tax

Another reputable option is Liberty Tax, accessible via their website.

Expert Recommendations

If you’re looking for an affordable way to reduce your tax filing expenses, Liberty Tax could be a good choice. Their online tax software is designed to be easy to use and offers several unique features. Plus, it is quite budget-friendly. Therefore, if saving money on taxes is a priority, Liberty Tax is worth exploring.

Best For

Value Offered

Price Range

$34.95/month to $89.95/month

Annual Discount

No

Special Offer

Get Started

Liberty Tax can help you significantly reduce the cost of filing your taxes. The budget-friendly online tax software features a simple, user-friendly interface and offers many unique tools to assist taxpayers more efficiently.

H4: Key Features:

• Tax Refund Anticipation Loan: One of Liberty Tax’s most popular features, this allows users to receive an advance on their expected federal refund, ranging from $500 up to $6,250, based on the refund amount after fees.
• Enhanced Audit Assistance: This optional add-on provides support before an audit, helping with document preparation, responding to IRS correspondence, and post-audit advice.
• Maximum Refund Guarantee: Liberty Tax promises to refund the amount paid for their tax services if you file the same return elsewhere and receive a higher refund or lower tax liability.
• Tax Estimator: A simple tool that helps estimate what your refund or tax liability might be, giving you an idea of what to expect before filing.

Drafting and submitting tax documents before the deadline is essential to avoid penalties and late fees.

Advantages:

• It simplifies the process by allowing users to import W-2 forms directly through ADP.
• The Help Sidebar feature enhances the tax filing experience by providing live chat support, including real-time refund updates and tax advice.
• It can automatically determine the most suitable software version based on your specific tax situation, optimizing efficiency.
• The software syncs smoothly with previous year’s documents, making past data easily accessible.
• The user interface is straightforward and friendly, especially for those new to filing taxes.

Disadvantages:

• No free options are available, even for basic tax submissions.
• The platform offers limited choices for customer support or filing options.
• There is a lack of detailed knowledge base or extensive help resources.

Pricing:

Liberty Tax provides four paid plans:

• Simple Edition: Federal returns cost $34.95; State returns are $35.95.
• Basic Edition: $44.95 for federal; $39.95 for state returns.
• Deluxe Edition: $64.95 for federal; $39.95 for state.
• Premium Edition: $89.95 for federal; $39.95 for state.

3. Jackson Hewitt

Expert’s Tip

Seek out a company with extensive experience in tax preparation. Jackson Hewitt, known for its dependable service and numerous physical locations offering in-person assistance, is a solid choice for those seeking trustworthy tax help.

Best For

Brick And Mortar

Pricing

Quote Based

Annual Discount

No

Promotion

Get Started

Jackson Hewitt ranks as the second-largest provider of tax preparation services in the United States. It maintains a strong presence nationwide through its numerous physical outlets, primarily located inside Walmart stores, which deliver reliable customer support and assistance with filing tax returns both in-person and online. The company offers a variety of features, including user-friendly tools such as refund status checks, W-2 location services, and tax calculators. Customers can also access options like an advance loan of up to $3,500 at zero percent interest for their anticipated refund and receive free audit assistance if needed.

Advantages of using Jackson Hewitt include the ability to utilize a free edition suitable for straightforward tax situations, importing W-2 forms and previous tax documents from other providers, and the guarantee of maximum refunds with high accuracy. Its website is compatible with smartphones, making it convenient for users on the go, and if further support is needed, clients can visit physical branches or contact customer service via live chat and email. However, some limitations include a less detailed knowledge base, the need to visit a physical location for complex cases, and limited phone support hours. Pricing details are not explicitly listed on the official website, but reviews suggest that services often start at approximately $29.99.

AvaTax, developed by Avalara, offers a different approach focused on simplifying tax compliance for organizations. It is an automated platform capable of managing both simple and complex tax obligations. By continuously updating and managing tax calculations, filings, payments, and records, AvaTax helps businesses ensure they stay compliant with current tax laws. With a flexible pricing range from $19 to over $83 per month, AvaTax is designed for companies aiming to streamline their tax processes without manual calculations or errors.

Yearly Discount Offer

No

Special Promotion

Start Your Free Trial

Key Features:

• Error-Free Calculations: The software simplifies tax calculations by setting up the nexus only once and automatically applying the correct rates for subsequent transactions. It uses built-in geolocation and address verification to ensure the accuracy and accessibility of data.
• Clear and Transparent: Its reporting tools make tax processes transparent, offering summarized payment schedules to users for easy tracking.
• Wide Integration Options: With more than 500 pre-configured integrations, it connects seamlessly with popular POS, accounting, and ERP systems.
• Supports International Taxes: Avalara provides various additional modules for international tax services, such as Avalara CertCapture, Avalara Returns, and AvaTax Excise, to enhance its global capabilities.

Pros:

• Regularly updated tax data ensures ongoing calculation accuracy.
• Capable of processing complex tax filings efficiently and quickly.
• Developers can integrate their own applications using a comprehensive developer toolkit.
• The cloud-based system delivers consistent performance across all devices and platforms.
• Built with strict security standards to protect sensitive data and maintain privacy.

Cons:

• Customer support quality varies; some support staff lack experience.
• The software may experience bugs, leading to occasional errors and frustrations.

Pricing:

5. Drake Tax

Expert’s Advice

If accuracy in tax filing is your priority, Drake Tax is highly recommended. The platform is user-friendly, enabling you to generate personalized reports that provide deep insights into your tax returns. This can help you make smarter and more informed tax decisions each year.

Best For

Ease Of Use

Price

$330/year

Annual Discount

No

Promotion

Free Trial

• Ease Of Use: Navigation is straightforward, allowing users to quickly switch between sections. It supports all key tax forms, manages gift and estate taxes, and includes tools for efficient document transfer.
• Comprehensive Filing: The software handles complex tax scenarios, providing all 1040 forms, federal packages, and 48 state packages. It also includes forms for S-corps, C-corps, partnerships, trusts, estates, and nonprofit organizations.
• Planning Tools: Features like tax comparison over multiple years, data archiving, and amortization schedules facilitate effective tax planning.
• Paperless Filing: Promotes digital document handling with options for sharing revisions, electronic signatures, and electronic filing of taxes, reducing paper use.

Pros:

• It enables smooth data import from QuickBooks and Client Write-Up, making it suitable for spreadsheet enthusiasts.
• The refund estimator provides real-time refund amount calculations during the process, helping to identify and resolve issues immediately.
• The review tool makes it easy to spot and correct mistakes.
• Customer support is strong and reliable.
• Tax forms are available in Spanish, catering to diverse users.
• Both state and federal returns can be e-filed effortlessly.

Cons:

• Remote signature functionality is not supported.
• The user interface may appear somewhat outdated.

Pricing:

6. Thomson Reuters’ ONESOURCE

Key Features:

• User Interface: It features a clean, organized dashboard that minimizes repetitive data entry. The platform seamlessly integrates with other tax compliance tools, making workflows smoother.
• Web-Based: Being cloud-based, the software allows multiple users across different devices to access and work simultaneously, making it ideal for large tax teams.
• One-time Data Entry: Users input data once, and it propagates throughout the system, reducing errors and saving time by avoiding multiple entries.
• Process Management: The software includes tools for streamlining workflows, enhancing team productivity and ensuring compliance deadlines are met efficiently.

Advantages:

• High-level data security, safeguarded with end-to-end encryption to protect sensitive information.
• A built-in audit manager helps users navigate audits or review processes smoothly and swiftly.
• Data can be imported directly from Excel spreadsheets, simplifying data entry processes.
• Supports electronic filing of tax returns with authorities through secure channels.
• Capable of managing federal, state, and international tax obligations, making it suitable for global businesses.
• Adheres to compliance rules across multiple jurisdictions, ensuring regulatory adherence worldwide.

Limitations:

• The extensive features might be overwhelming for first-time users or smaller teams.
• The software’s cost may be prohibitive for small to medium-sized enterprises.

Pricing:

7. QuickBooks

Key Features:

• Accountant Tools: Offers extensive tools to keep accounting data organized, including tracking overdue items, notes, payable bills, and contact information.
• Automated Reporting: Ensures all taxable amounts are accurately captured for tax filing, reducing the risk of penalties or interests.
• Highly Secure: Data is protected via end-to-end encryption, ensuring confidentiality and security.

Advantages:

• Most accounting features are accessible online, allowing flexibility and remote access.
• Generates comprehensive end-of-year reports on income, profit, losses, and payables, and integrates smoothly with TurboTax for easy tax preparation.
• Connects to bank accounts and credit cards to automatically import income data.
• Provides numerous reports and insights to keep users informed about their financial and tax status.
• A mobile app is available, enabling users to prepare and file taxes on the go.

Limitations:

• It is not suitable for handling complex tax situations among large organizations.
• Customer support can sometimes be lacking in responsiveness and depth.

Pricing:

• Self-employed: $5/month
• Simple Start: $7/month
• Essentials: $17/month
• Plus: $25/month

Key Features:

• Automatic Calculation: The platform automatically determines the amount of R&D tax credits based on the data entered, removing manual effort and reducing errors.
• Regulatory Compliance: It generates compliant reports and documentation automatically, ensuring accuracy and adherence to regulations.
• Streamlined Tax Workflow: Clarus R+D handles the bulk of tax credit calculations, making it ideal for small businesses lacking the resources to manage this process internally.

Pros:

• Provides support from experienced tax experts for questions and audit preparations.
• Delivers detailed reports that securely store all data in a clear and understandable format.
• Minimizes the need for manual data entry and calculations.
• Access from anywhere using cloud-based software on multiple devices enhances flexibility.

Cons:

• Does not offer customized management features.
• Lacks a free trial option, which might be a drawback for small businesses testing the service.

Pricing:

What Is the Best Free Tax Software?

9. OLT Online Taxes

Key Features:

• IRS E-file Compatibility: OLT provides a fast and efficient way to electronically file federal tax returns, suitable for small, medium, and large businesses.
• High Security Standards: Use of Trust Safety verification ensures all entered data is protected, and it offers audit support for backup and verification requirements.
• Intuitive Navigation: The platform features multiple tabs for easy access to filing options, income details, deductions, credits, adjustments, and summaries.
• Dynamic Glossary: An updating glossary sidebar offers links to relevant articles on tax topics, helping users understand various procedures as they work through their returns.

Pros:

• Supports free filing of forms 1040, 1040EZ, and 1040A.
• Available customer support via phone and live chat channels.
• Provides extensive guidance for users undergoing audits.
• Supports all essential forms and schedules to accommodate diverse business needs.
• Enables entry of previous years’ tax data for easy updates.

Cons:

• Does not include a guided interview process for personal life events.
• May not be ideal for first-time filers unfamiliar with online tax filing.

Pricing:

Key Features:

• Supports Various Tax Forms: The platform accommodates nearly all major forms and schedules necessary for efficient tax filing. It includes coverage for itemized deductions, capital gains and losses, self-employment income, and more.
• User-Friendly Interface: The interface organizes the tax preparation tools in an intuitive dashboard. A horizontal menu at the top allows users to easily navigate between Basic Information, Federal, and State Tax sections.
• Data Validation: Credit Karma’s software checks all entered data for errors or omissions before submission. If issues are identified, users can return to corrected sections before proceeding.
• Customizable Options: Users can tailor their tax scope according to their specific needs, including sections like Deductions, Income, and Wages.

Pros:

• The platform is completely free to use.
• It provides trustworthy guidance and customer support throughout the U.S.
• Tax refunds are fully retained by users, with no hidden fees or upsells from Credit Karma.
• The company also offers additional services such as credit cards, loans, and identity theft monitoring.
• Users receive comprehensive support for both federal and state income taxes, including guidance and forms.

Cons:

• The interface looks somewhat outdated and may not be as modern as other software options.
• Customer support options are limited and could be more robust.

Pricing:

11. H&R Block

Key Features:

• Extensive Support Network: With over 12,000 offices nationwide, it offers one of the best help desk support options available.
• Ask A Pro: Regardless of your software edition, professional assistance via chat and screen sharing is available for $40 to $50.
• Free Tax Filing: The ‘Free Filing’ option is particularly beneficial for DIY filers, allowing deductions such as mortgage interest and earned income credits.
• Easy Navigation: The user interface is straightforward, with a top menu that makes correcting errors or revisiting sections simple.

Pros:

• Personalized support from certified tax professionals helps ensure accurate filings.
• The online platform is intuitive and easy to operate.
• Filing W-2 forms and inputting data is quick and user-friendly.
• The support team includes IRS-certified agents ready to assist if any mistakes are made.
• Optionally, users can pay for professional review services to prevent errors.
• Every return is checked through its Accuracy Check process to spot potential errors and identify savings opportunities.
• Tax refunds can be advanced after meeting certain eligibility criteria.

Cons:

• The available informational content is sometimes insufficient for complex issues.
• The lower-cost plans may not handle more complicated tax situations effectively.

Pricing:

• Basic: $29.95
• Deluxe: $54.95
• Premium: $74.95
• Self-Employed: $79.99
• Premium & Business: $89.95

12. TaxAct

Key Features:

• Refund Bonus: TaxAct has partnerships with major US retailers and restaurants like Regal, Domino’s, Amazon, Bed Bath & Beyond, GameStop, and The Home Depot. If users opt to transfer part of their refund to a gift card from any of these businesses, they can receive bonuses of up to $100.
• Previous Tax Returns: Users can import their past TaxAct returns to streamline current filings. It also supports importing data from other tax software like TurboTax and H&R Block, among others.
• Accuracy Guarantee: TaxAct confidently offers a $100 guarantee against errors, a bold and distinctive feature in the industry.
• Web-Based Platform: As an online solution, it provides flexibility to work from any device or location. Additionally, a mobile app enhances usability on smartphones.

Pros:

• Users can pay their filing fees directly from their tax refund.
• The platform’s review system highlights errors and suggests deductions or credits to maximize refunds.
• Additional audit protection can be purchased for $39, giving access to qualified professionals during IRS audits.
• Taxpayers have options for receiving refunds via check, direct deposit, or prepaid card.

Cons:

• W-2 form import capabilities are absent.
• Customer support is somewhat limited and can be costly.
• The platform’s features and tools are not as extensive as some competitors.

Pricing:

• TaxAct Basic+ – Federal: $10-$15, State: $19.95
• TaxAct Deluxe+ – Federal: $30-$48, State: $39.95
• TaxAct Premier+ – Federal: $40-$50, State: $39.95
• TaxAct Self-Employed – Federal: $60-$78, State: $39.95

13. FreeTaxUSA

Key Features:

• User-Friendly Interface: The platform boasts a simple, no-frills interface designed for ease of use. Its straightforward design means no distraction from complex visuals or animations.
• Comprehensive Free Version: The free plan covers all essential forms, including self-employment (Schedule C), capital gains (Schedule D), rental income (Schedule E), and other income types. It competes well with paid software in terms of features.
• Free Customer Support: Support is available without extra charges, handling basic inquiries effectively.
• Accuracy Assurance: The software guarantees accurate filings and commits to covering any interest or penalties resulting from errors.

Pros:

• Tax refunds can be easily received via e-file and direct deposit.
• The Audit Assist feature provides complete guidance for IRS correspondence and audits.
• Assistance is available for filing exemption claims or paying healthcare-related penalties.
• The Deluxe version allows unlimited amended returns, audit support, and prioritized customer service.
• Helpful pop-up tips improve user efficiency with the software.
• There are no charges for importing prior-year data, making future filings more convenient.

Cons:

• The Audit Assist feature is only accessible to Deluxe plan subscribers.
• It may not support very complex tax situations or advanced filings.
• Support options are somewhat limited compared to premium platforms.

Pricing:

14. TaxSlayer

Key Features:

• Extensive Knowledge Base: The platform offers a comprehensive online resource filled with detailed instructions on tax filing processes and its features. Users can find answers to many questions independently, often eliminating the need for direct support.
• User-Friendly Design: It features an intuitive interface that makes it easier for beginners and small business owners to navigate. The setup process is straightforward, complemented by a helpful step-by-step guide.
• Cost-Effective: With competitive pricing, it combines robust support, numerous features, and ease of use at a lower price point compared to other market options.
• Affordable State Return Filing: Regardless of the chosen plan, users pay a flat fee of $29 for state tax returns, with military members qualifying for a discounted rate of $15.

Pros:

• The platform covers interest and penalty reimbursements if errors occur.
• Support is available via phone and live chat options.
• Users can import W-2 forms directly from multiple employers or upload PDF copies of previous returns to auto-fill information.
• The cloud-based design allows quick switching between devices such as desktops and smartphones.
• Mobile apps are available for download on iOS and Android devices.

Cons:

• Accessing professional tax advice can be costly.
• Audit support services are somewhat basic in scope.
• The final cost is only revealed after completing the tax filing process.

Pricing:

• Classic: $17
• Premium: $37
• Self-Employed: $47

15. Free File

Key Features:

• Tax Deductions Finder: This feature guides eligible taxpayers through a question-and-answer process to identify potential tax deductions efficiently.
• Tax Extension Support: If you do not finish your return by the deadline (April 18), you can request a six-month extension through the Free File service.
• Free Filing Forms: It provides Free Electronic Fillable Forms, making it easy to prepare and submit income tax returns without additional paid software or assistance.
• Cost-Free Filing: The platform is completely free, offering a quick refund process for eligible users.

Pros:

• The platform has tailored options for students, self-employed individuals, military personnel, government workers, and international taxpayers.
• It is available in multiple languages such as Spanish, Chinese, Russian, Japanese, and Vietnamese, in addition to English.
• Comprehensive guides created by tax professionals enhance user understanding and save time.
• An ideal choice for experienced filers who prefer to handle their taxes without incurring costs.

Cons:

• It has limited features for more complex tax situations.
• Customer support might not be sufficient for intricate tax issues.

Pricing:

What is Tax Software?

How Do You Choose the Best Tax Preparation Software?

1. Software Version

2. Do You Need to Prepare a State Tax Return?

3. Assistance with Tax Deductions

4. Consider Open Source Software

5. Customer Support

Tax Software – FAQ

What is the purpose of tax software programs?

What is a federal tax return?

Is the IRS free file program useful?

Executive Summary

• Ensuring accurate tax filing
• Reliable customer support, especially during audits
• Maximizing refunds for personal or business finances
• User-friendly interface
• Comprehensive knowledge base for resolving queries
• Transparent pricing structure