TurboTax vs. TaxAct 2025

There is stiff competition between the biggest tax-prep software providers. TurboTax may be more widely recognized, but TaxAct is a strong competitor with its affordable tax help.

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Updated · 4 min read
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Written by Sabrina Parys
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Edited by Arielle O'Shea
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Co-written by Bella Avila
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TurboTax's packages are easy to use, and they come with plenty of professional tax support if you're willing to pay more. TaxAct may not have the same bells and whistles, but the company offers filing and tax support at a compelling price point.

TurboTax vs. TaxAct: Cost

FREE TIERS

$0 + $39.99 per state filed.

For dependents and simple filers who need help with college expenses, unemployment or retirement income.

$0 + $0 per state filed.

It allows you to file a 1040 for free, but you can’t itemize or file full Schedules 1, 2 or 3.

Roughly 37% of taxpayers are eligible. TurboTax Free Edition supports a simple Form 1040 and no schedules except for the earned income tax credit, child tax credit and student loan interest.

PAID PACKAGES

Deluxe $29.99 + $39.99 per state filed.

This option is ideal for homeowners and those who need to consider child care expenses or certain deductions, credits and adjustments.

Premier $49.99 + $39.99 per state filed.

Premier is good for investors who need to report capital gains and losses and those who have sold a home or own a rental property.

Self-Employed $69.99 + $39.99 per state filed.

This tier is good for freelancers, contractors and small-business owners. Includes access to Schedule C and Schedule F.

Access to tax pro support requires upgrading to Xpert Assist for $60.

Promotion: NerdWallet users get 10% off federal and state filing costs.

Deluxe $39 + $39 per state.

Itemize and claim several tax deductions and credits. Works well for business income but no expenses.

Premium $89 + $39 per state.

Investment reporting and rental income (Schedules D and E, and K-1s), plus business income, expenses on a Schedule C, home office deductions and features for freelancers.

Access to tax pro support requires upgrading to TurboTax's Live Assisted packages, which range from $49 to $169, plus state fees of $39 to $49.

Promotion: NerdWallet users can save up to an additional 10% on TurboTax.


One note about prices: Providers frequently change them and may offer discounted services and packages toward the beginning of tax filing season. These markdowns tend to get replaced with surge pricing the closer we get to the tax filing deadline. We base our reviews on the list prices and not the discounts to reflect this. You can verify the latest price by clicking through to the provider's website.

TurboTax vs. TaxAct: Features and ease of use


The IRS, not the tax software you choose, determines how much you owe in taxes for the year. So barring any programming error, you should get the same numerical “answer” no matter which tax software you use. What does vary: How easy it is to feed the software your information. That's why we look at features and ease of use — we want to know which offerings are least likely to make you want to pull your hair out.

TurboTax

TurboTax’s interface is like a chat with a tax preparer, and you can skip around if you need to. A banner running along the side keeps track of where you stand in the process and flags areas you still need to complete.

Embedded links throughout the process offer tips, explainers and other resources. And help buttons can connect you to the searchable knowledge base, on-screen help and more.

TaxAct

TaxAct has a similar look and feel, with an interview process guiding you along. You can skip around easily, and a banner running down the side keeps track of how far along you are.

Embedded links throughout offer tips, explainers and other resources, and the help center links to a searchable knowledge base.

Both TurboTax and TaxAct allow you to switch from a different software provider and offer tools to help you calculate the deduction value of donated items (though neither TurboTax nor TaxAct offer this at the free tier). TurboTax has an app, but TaxAct does not.

TurboTax vs. TaxAct: Tax support


TurboTax and TaxAct offer inline help and searchable knowledge bases, and tech support is available as well. Both providers also offer paid upgrades for tax support from knowledgeable pros.

TurboTax

TurboTax Live offers a one-on-one review with a tax pro before you file as well as unlimited live tax advice. You can make an appointment or talk on the fly to a tax pro via one-way video (you see them, but they see your screen only).

TurboTax Live Full Service does away with tax software altogether. Instead, you upload your tax documents and a human puts together your tax return. Prices start at $89 for basic federal returns, but final pricing depends on complexity — plus there are additional costs per state return.

TaxAct

TaxAct offers affordable help through its Xpert Assist add-on. Xpert Assist gets you unlimited access to a tax expert. You submit a question and then the right expert will reach out over the phone. You can also share your screen to help the experts better understand your question. TaxAct says its tax pros are CPAs, enrolled agents or laywers.

Refund options


Both TurboTax and TaxAct let you receive a federal refund via direct deposit to a bank account, which is the fastest option. Other options they both offer include getting an old-fashioned paper check, applying the refund to next year’s taxes or directing the IRS to buy U.S. savings bonds with your refund.

Both providers offer an option to have your refund loaded onto a prepaid card. (These cards may come with fees, so be sure to factor that into your decision.) And both let you use your refund to pay for your tax-prep fees (but there is a separate fee for that, too).

Audit support


If you are audited, it’s important to know what kind of support you’re getting from your tax software. First, be sure you know the difference between “support” and “defense.” With most providers, audit support (or “assistance”) typically means guidance about what to expect and how to prepare — that’s it. Audit defense, on the other hand, gets you full representation before the IRS from a tax professional.

TurboTax gives everyone free audit support from a tax pro to help you understand what’s going on if you get that dreaded letter about your tax return. If you want audit defense, that’s available as an add-on for an additional $39.99.

TaxAct encourages filers to reach out to its customer service team for free audit assistance. When it comes to audit defense, TaxAct partners with ProtectionPlus to offer customers the service as an add-on for $49.99.

TurboTax vs. TaxAct: Which one is right for you?


TurboTax stands out when it comes to tools and integrations. But that doesn’t mean the provider’s overall offerings are the perfect fit for every user.

TaxAct’s paid packages cost less, and they come with affordable upgrades for human tax help support if you need it. This makes TaxAct a great one-stop shop for both seasoned and beginner filers who might feel at ease knowing that help is available should they need it.

TurboTax, on the other hand, has a long-standing reputation for its ease of use, including a well-reviewed mobile app and plenty of its own human support options at a cost. This may make the provider a better choice for those who are willing to pay a little bit extra for white-glove tax prep.

» Want all the details? Read our reviews of TaxAct and TurboTax.

How do TurboTax and TaxAct compare with other providers?

  • Federal: $29.99 to $69.99. Free version available for simple tax returns only.

  • State: $39.99 per state.

  • Add Xpert Assist for $60.

Promotion: NerdWallet users get 10% off federal and state filing costs.

  • Federal: $35 to $85. Free version available for simple tax returns only.

  • State: $0 to $37 per state.

  • Unlimited tax pro help included in paid packages.

  • Federal: $39 to $89. Free version available for Form 1040 and limited credits only. Roughly 37% of filers qualify.

  • State: $0 to $39 per state.

  • Tax pro help available by upgrading to Live Assisted.

Promotion: NerdWallet users can save up to an additional 10% on TurboTax.

  • Federal: $22.95 to $52.95. Free version available for simple tax returns only.

  • State: $0 to $39.95 per state.

  • On-demand tax help at Premium and Self-Employed tiers.

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 above. Providers frequently change pricing. You can verify the latest price by clicking through to each provider's site.

In this comparison

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