The Best Tax Software of 2025: Free and Paid Packages
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Taxes are confusing enough without the added stress of figuring out which tax software to use. While you should get the same refund or bill no matter which provider you choose, tax filing programs typically come at a cost — so there’s a crucial difference between paying for what you'll use and paying extra for what you don’t need.
We did the research by testing and evaluating four well-known, widely used online tax providers. Our review process includes first-hand testing and information collection, focusing on factors that are important to filers: price, ease of use, tools, tax pro help and customer support. (Prices are updated monthly and are accurate as of January 2025.)
If you're new to filing or just need a little more guidance, you can also check out our tax software guide further down on the page, which covers the ins and outs of picking tax software.
Best online tax software
🤓 Nerd Tip: If your adjusted gross income for 2024 was $84,000 or less, you might be able to get free tax software from some of these providers through the IRS' Free File program. Plus, there are a few more options for free tax filing.
TurboTax: Best overall tax software package (free and paid)
TurboTax stands out across the board, scoring high marks for categories such as ease of use, features and tools. Working with the software feels like an interview with a tax preparer who knows just what to ask and how best to guide you.
Similar to other providers we review, the free DIY package covers only simple tax situations. This package might only make sense for you if you have W-2 income and need help with claiming basic tax breaks such as the child tax credit and the student loan interest deduction.
The paid packages — the Deluxe and Premium tiers — come at a higher cost relative to other tax-prep software we reviewed, but many filers might find the stellar user experience and innovative features justify the price. The Deluxe tier can help filers who itemize or are homeowners, while the Premium is better suited for investors or people with freelance or self-employment income.
H&R Block: Best software for tax pro support
H&R Block is our top pick for tax pro support in 2025. The company offers users a number of human support options. Its paid packages — the Deluxe, Premium and Self-Employed tiers — include access to unlimited screen sharing and chat support with a pro at no additional cost. This is often something that requires another upgrade with competitor services such as TurboTax. However, it's worth mentioning that this support doesn't come with a final review of your tax return (if you want to tack that on, it'll cost you extra).
Like many other providers, H&R Block's free version has no income restrictions and can handle Form 1040, income from wages, limited bank interest, student loan interest (1098-E), and limited Schedules 1, 2 and 3 (but you may need to upgrade if you need other forms to complete the schedules).
If you need help with itemized deductions, investing income, freelance or self-employed work, or HSA distributions, you'll need to upgrade to the Deluxe, Premium or Self-Employed editions.
TaxSlayer: Best affordable tax software package
TaxSlayer takes the cake for the most affordable tax software this filing season. Not only are its paid packages the least expensive of those we review, but TaxSlayer shakes up the norm by offering all forms, deductions and credits at its lowest-price tier. The only difference between the paid packages is how much support you get from a tax pro.
Similar to its big-name competitors, TaxSlayer's free version only supports simple tax situations. If you just need to file a simple 1040 and don't need to claim any dependents or common tax credits, you may be able to take advantage of the deal. However, TaxSlayer is a bit stricter than its peers in what it considers a "simple tax situation," with income limits and filing status restrictions in place.
If your tax situation falls outside of these limitations, more confident filers may consider upgrading to the Classic tier, and those who need some extra guidance from a tax pro may consider the Premium tier. TaxSlayer also offers a Self-Employed tier for business owners who need specialized tax help.
TaxAct: Competitive tax software to consider
Although TaxAct didn't win any "best" accolades this year, there's no denying it's a good deal. TaxAct is our runner-up for the best affordable tax software package. Its paid packages are less than those offered by big-name providers like H&R Block and TurboTax. Plus, no matter if you use the free version or paid version of the software, you can get tax pro help through Xpert Assist for an additional fee.
TaxAct's free version is similar to other providers: it's only for those with simple tax situations. It's reserved for filers who are taking the standard deduction and don't need to claim many deductions or credits. However, it's worth noting that most free tax software packages include a free state return, but TaxAct charges a $39.99 fee for each state filed.
Like most other providers, TaxAct's paid packages vary in which forms, deductions and credits they support. People with trickier tax situations — homeowners, investors, small-business owners — may opt for TaxAct's Deluxe, Premier or Self-Employed tier.
Best free tax software
TurboTax is this year's winner for our overall best tax software, including its free version, which is designed to help people with fairly simple tax returns. However, many other providers also offer competitive packages for this tier. This includes H&R Block, whose free version includes more forms than you might get with other online software. Here's a quick overview of how each provider's free tax software stacks up.
Provider | Forms covered | Free state return included? | Income limitation? |
|---|---|---|---|
1040, Schedule 1, 2, and 3 (limited), earned income tax credit, child tax credit, unemployment income, student loan interest, tuition and fees, certain retirement income, lifetime learning credit, and American opportunity tax credit. See full list of supported forms here. | Yes. | No. | |
1040, earned income tax credit, child tax credit, unemployment income, certain retirement income, lifetime learning credit and American opportunity credit. See full list of supported forms here. | Yes. | No. | |
1040, unemployment income, student loan interest, lifetime learning credit, American opportunity credit. TaxSlayer Simply Free does not work for those who need to claim dependent or who have a filing status of head of household, married filing separately, or qualifying widower. See supported situations here. | Yes. | Yes, $100,000 or less. | |
1040, earned income tax credit, child tax credit, student loan interest, certain retirement income. See full list of supported forms here. Roughly 37% of taxpayers are eligible. TurboTax Free Edition supports Form 1040 and limited tax credits only. | Yes. | No. |
Best tax software overview
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Promotion: NerdWallet users can save up to an additional 10% on TurboTax. | |
Promotion: NerdWallet users receive 20% off federal filing costs on Classic, Premium, and Self-Employed packages with the code "Nerd20". |
These star ratings are based on a tax provider's free tier score. For more detailed scoring, see the full product details drop-down menu above. Providers frequently change pricing. You can verify the latest price by clicking through to each provider's site.
Guide to tax software
What is tax filing software?
In the U.S., tax filers often have three options for completing their federal tax returns: (1) file manually by paper, (2) file online using tax software or (3) file through a tax pro, such as a CPA or an enrolled agent.
Tax software helps filers complete and submit their federal and state income tax returns using a DIY program. Due to its convenience and accessibility, it's by far one of the most popular filing methods.
You can sign up for tax software online via the provider's website. There may be multiple packages to choose from — but generally, the more complex your taxes are, the more you can expect to pay. The program will then guide you through your federal and/or state taxes by asking a series of interview-style questions that will help it populate tax forms on the backend.
The type of support you can expect will vary from provider to provider. Some packages and programs include access to a tax pro, such as a CPA, should you need it, but these services may require an upgrade or result in additional fees. Once your filing is complete, the program runs a final check and submits your return to the IRS and/or the state tax department.
Quality tax software should also facilitate the refund or payment process between you and the tax entity. This means you can pay your tax bill directly via the software or supply your banking info to the provider to initiate the refund process.
How to choose tax software
If you don't know what you need, it might help to examine online tax filing providers individually and what sort of services each one offers. Here are a few areas to dig into:
Do I need tax software?
Most filers use either tax software or a tax professional, such as a CPA. Deciding which route makes the most sense for you often comes down to three factors: the complexity of your tax situation, how much help you need and your budget.
“Tax software tries to simplify the language of the tax code for taxpayers,” says Nayo Carter-Gray, CEO and founder of 1st Step Accounting. "But it can still be confusing or overwhelming since it asks a bunch of questions that the average taxpayer may not be familiar with.”
The best software should walk you through the filing process, can handle most tax forms and specialty income, and will tell you whether it’s better to take the standard deduction or itemize, for example.
Carter-Gray, an enrolled agent, says working with a tax pro may be the better option if you’re getting overwhelmed with questions, made a large transaction you’re unsure how to handle, had multiple income streams or various investments — or if you’re simply just seeking more tax planning.
If you already know you want to file on your own but are wondering if you should use software (whether free or paid) or paper forms, that answer is simple. The IRS says e-filing is the easiest, fastest and most efficient way to file. Filing digitally will also ensure your tax refund gets to you sooner.
Methodology
NerdWallet’s comprehensive review process evaluates and ranks the largest online tax software providers. Our aim is to provide an independent assessment of available software to help arm you with information to make sound, informed judgements on which ones will best meet your needs. We adhere to strict guidelines for editorial integrity.
We collect data directly from providers, do first-hand testing and observe provider demonstrations. Our process starts by sending detailed questions to providers. The questions are structured to equally elicit both favorable and unfavorable responses. They are not designed or prepared to produce any predetermined results. The provider’s answers, combined with our specialists’ hands-on research, make up our proprietary assessment process that scores each provider’s performance.
The final output produces star ratings from poor (1 star) to excellent (5 stars). Ratings are rounded to the nearest half-star. For more details about the categories considered when rating tax software and our process, read our full methodology.
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