There are so many different options when it comes to tax software, and it can be very confusing to figure out which is best. What makes it even more confusing is that many of the companies "hide" the real cost of their software.
You see, most companies are simply advertising the "Federal Return" price, and not other costs, such as State filing, and e-Filing fees that may be included. On the other hand, other companies include everything in just one price.
Even when you see "Free Federal", it doesn't really mean free - you'll likely be paying something to file your taxes.
We compared the prices of all versions of TurboTax 2016, H&R Block 2016, and Tax Act 2016 to really help you understand what you're getting. This article isn't about the features, so much as the price (we bucketed the programs in the closest features per version). We already talked about the best tax software for early filers, which looked at the features each company is offering right now.
To make matters even more complicated, there are different prices for the online and download editions of every product. My head hurts just thinking about it.
There are three big changes for the 2016-2017 tax season:
- H&R Block is one of the best price to value ratios on the market. We especially like that they added the Schedule C-EZ to their Deluxe version, and they made their free edition truly free. This could help a lot of side hustlers. Read our full H&R Block Review.
- TaxAct raised their prices again this year. While still the cheapest option, past users will be surprised by the increase. Read our full TaxAct review here.
- TurboTax Free Edition upped their game again with the interface, and their free level is 100% free this year from the start. Read our full TurboTax review here.
** An important disclaimer is that these comparisons are based on full-priced offers that were available in December 2016. We will strive to update the pricing as we see it change, but remember that sales and discounts will happen all of the time throughout tax season. Furthermore, we discovered that simply going to the website of H&R Block or TurboTax, then leaving, then returning gave us a 20% discount in pricing. Yay for browser cookies!
Along those lines, we also discovered the Amazon.com is offering great deals on TurboTax. This year they are offering an Amazon exclusive edition of TurboTax - check out the Amazon exclusive TurboTax here.
Comparing Online Free Editions
First, let's take a look at the "Free" editions of each company.
| TurboTax Free | H&R Block Free | TaxAct FREE |
|---|---|---|---|
Federal Return | $0 | $0 | $0 |
Federal eFile | $0 | $0 | $0 |
State Return | $0 | $0 | $0 |
State eFile | $0 | $0 | $0 |
Total Price | $0 | $0 | $0 |
| | | |
I'm excited to see that all of the "big 3" tax companies are offering truly free "Free" editions this year. This is a change from past years, when only TaxAct was free.
Given that all three companies offer Free filing, we recommend TurboTax Free Edition, as it is the easiest to use, and it's just as free as anyone else.
Comparing Online Basic Editions
Next, let's look at the online "basic" editions of each product. It's important to note that this is a really strange tier. Only TurboTax offers a Deluxe product - that caters to people that want to itemize but don't have investments. I honestly don't know who falls into this category.
These are going to be the ones that many filers will be using this year. This version is for tax filers that have fairly simple tax situations. It's important to note that TurboTax Deluxe allows itemization, while TaxAct Basic does not, so not all versions are equal here.
| TurboTax Deluxe |
|---|---|
Federal Return | $34.99 |
Federal eFile | $0 |
State Return | $36.99 |
State eFile | $0 |
Total Price | $71.98 |
| |
We don't really have a recommendation here, except you can see that TurboTax is really the only one that offers this "weird" level.
Comparing Online Deluxe Editions
This is where the versions really matter. Make sure you read what different options are offered. This tier is many geared towards homeowners, investors, and some side hustlers.
It's important to note that H&R Block allows the Schedule C-EZ with their Deluxe version, which could be a good deal for some side hustlers.
| TurboTax Premier | H&R Block Deluxe | TaxAct Plus |
|---|---|---|---|
Federal Return | $54.99 | $34.99 | $15 |
Federal eFile | $0 | $0 | $0 |
State Return | $36.99 | $39.99 | $25 |
State eFile | $0 | $0 | $0 |
Total Price | $91.98 | $74.98 | $40 |
| | | |
Once again, TaxAct is the lowest price offering. We highly recommend TaxAct for both their pricing and the usability of their online tools.
However, if you are a side hustler, and don't need the full Schedule C, you might consider H&R Block. However, TaxAct Premium is still cheaper.
Comparing Online Small Business And Premium Editions
Each of the three companies offer a small business edition of their software. This is important if you are filing a Schedule C for your tax return (which is for side hustlers as well).
| TurboTax Self Employed | H&R Block Premium | TaxAct Premium |
|---|---|---|---|
Federal Return | $89.99 | $54.99 | $30 |
Federal eFile | $0 | $0 | $0 |
State Return | $36.99 | $36.99 | $25 |
State eFile | $0 | $0 | $0 |
Total Price | $126.98 | $91.98 | $55 |
| | | |
Once again, TaxAct is the lowest priced option when it comes to small business editions - and the increase in savings keeps growing with each version! If you are looking to file a small business return, check out TaxAct Premium as the lowest priced option.
Comparing Download Editions of TurboTax, H&R Block, and TaxAct
Just when you thought things couldn't get more complicated, each company offers a downloadable version of their software. This is designed for people who want to do their taxes while NOT being online. This is a more expensive way to go, and the pricing is very different from the online versions for many of the companies.
Remember, you might have better luck on pricing shopping on Amazon.com - we already discussed how Amazon has an exclusive price on TurboTax this year.
This is also the same version of the software that you'll typically find in retail stores, if you buy the CD. As such, you may be able to find cheaper pricing online from retailers.
Comparing Downloadable Basic Editions
| TurboTax Basic | H&R Block Basic | TaxAct FREE |
|---|---|---|---|
Federal Return | $39.99 | $29.95 | $0 |
Federal eFile | $0 | $0 | $0 |
State Return | $39.99 | $39.95 | $25 |
State eFile | $24.99 | $19.95 | $9.99 |
Total Price | $104.97 | $89.85 | $34.99 |
| | | |
TaxAct is still the low priced option for basic editions. However, I recommend that you avoid the basic editions, they are actually higher priced than other options.
Comparing Downloadable Deluxe Editions
| TurboTax Deluxe | H&R Block Deluxe | TaxAct Plus |
|---|---|---|---|
Federal Return | $69.99 | $54.95 | $40 |
Federal eFile | $0 | $0 | $0 |
State Return | $0 | $39.95 | $0 |
State eFile | $24.99 | $19.95 | $9.99 |
Total Price | $94.98 | $114.85 | $40.99 |
| | | |
I don't know if you noticed, but the Deluxe versions of TurboTax and H&R Block are actually cheaper than the basic versions. Talk about marketing gimmicks! However, TaxAct still takes the lead on being the lowest price software option.
Comparing Downloadable Premium Editions
| TurboTax Premier | H&R Block Premium | TaxAct Plus |
|---|---|---|---|
Federal Return | $99.99 | $74.95 | $40 |
Federal eFile | $0 | $0 | $0 |
State Return | $0 | $0 | $0 |
State eFile | $24.99 | $19.95 | $9.99 |
Total Price | $124.98 | $94.90 | $49.99 |
| | | |
As you can see, TaxAct is still the lowest priced option because they don't have an additional tier of pricing. You'll also notice that H&R Block calls this version Premium, but in the online version they call it Deluxe. Very confusing.
Comparing Downloadable Small Business Editions
| TurboTax Home & Business | H&R Block Premium & Business | TaxAct Premium |
|---|---|---|---|
Federal Return | $109.99 | $89.95 | $55 |
Federal eFile | $0 | $0 | $0 |
State Return | $0 | $0 | $0 |
State eFile | $24.99 | $19.95 | $9.99 |
Total Price | $134.98 | $109.90 | $64.99 |
| | | |
Once again, TaxAct is the cheapest.
Conclusion
After looking at the pricing of every edition from all three companies, it became clear that a few trends emerged:
First, TaxAct is always the cheapest options. If you're looking for a good online or downloadable tax program at a reasonable price, TaxAct is the best choice.
However, if you qualify for free tax filing, we recommend TurboTax Free Edition. It's free (like the others), but TurboTax has, by far, the best user interface.
If you're looking at the battle between TurboTax and H&R Block, H&R Block is always the cheapest option online. If you want to buy software to download or buy software in the store, H&R Block is always the cheapest option.
What are your thoughts on tax software pricing? Have you used any of these companies?
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The Deluxe version is by far the most popular. After reading the reviews at Amazon and Costco I learned long time users, like myself, of TurboTax are jumping ship because TT Deluxe no longer supports small investors and businesses as it has in years past, without upgrading. Absent the Net I would have never known.
As a recovering cancer patient a word of advice, when searching the Web, DATES are of critical importance.
–Ron
Yes, the change in TurboTax Deluxe this year not supporting Schedule D has caused some controversy. And H&R Block is taking advantage by offering TurboTax customers H&R Block software for free: http://plantingmoneyseeds.com/hr-block-offers-free-tax-prep-software-turbotax-users/
Over the years I have used all three products with price being the driving force. I have used both online and download versions. I have found no discernible difference in any of the products. They all do pretty much the same thing. However, I have used Tax Act for the past 7 + years and have been very pleased with them. Tax Act doesn’t market as much which shows when you go with H&R Block or Turbo Tax a lot of what you are paying for is their marketing costs.
Thank you for your article. I just jumped ship from TurboTax to TaxAct in part because of it. I had never heard of TaxAct before but TurboTax pissed me off because they kept raising the price every year so I went to the web to find a cheaper alternative. Whereas TurboTax was going to charge me $80 as a military member for the premier version, TaxAct is allowing me to file for free using TaxAct Premium because of my military affiliation. Thanks again.
as a long time taxact user i am really shocked how much their prices went up this year (for the 2016 tax year). plus they used to email preseason discounted prices which they didn’t do this year.
Last year my price was $13.99 for Taxact to file State, Federal and e-file them. Now it will be $40 or $55. That is a 200-300 percent increase in one year! I think that the word “DRASTIC, or HUGE” would have been used to describe the Tax act increase. I have been using Taxact for years and this price increase is unacceptable to me, however those of you who were using the other two Companies, would probably think I should not complain. If you now switch to Taxact, you missed al the good prices. If Taxact has not changed their software like they did the prices, it, to me has worked very well for me. I was in the military, but they did not offer me a thing except a 10% discount since I have been with them for a long time. I will call them back to ask about that too. Thanks for letting us know. Like me, you can call Taxact and spend 30 minutes to get 10% off your price. I would call as they NEED to know people are not happy with a 200 to 300% price increase!
I too have been using TaxAct since their first version. I have a MSWin PC that has been retained for only that software, as we are are a MAC house for the most part. TaxAct’s price increases this year are outrageous and in light of last year’s price increase approach gouging. This cannot be condoned. Given the very modest price differences between H&R Block and TaxAct, I am willing to pay the difference and try the Mac version of their software. If enough people dump them, maybe they’ll rethink.
I did my ex-wife’s taxes, and as she works in a state that has income tax, it was $22.48 last year to use TaxAct.
This year if I used them it would be over $60.
As a result I told her to order a copy of H&R Block from Amazon for $26 as I don’t support any company that triples their prices year on year for no reason other than greed.
I have been using TaxAct for quite a few years, primarily due to their reasonable price to file a Federal and State state return. TaxAct’s enormous price increase for this year is unacceptable and in my opinion, price gouging.
I found FreeTaxUsa.com which charges $0 for the Federal return and $12.95 to add a State return. FreeTaxUsa will import previous year’s data from TaxAct, TurboTax or H&R. It supports numerous tax forms and appears to do everything TaxAct does. I am going to try them.
Is there any chance you will review FreeTaxUSA.com and/or CreditKarma.com Tax as well? Those 2 look very promising…
We have reviewed both. We like FreeTaxUSA: http://thecollegeinvestor.com/18729/freetaxusa-review-2016/
Credit Karma Tax is free (which is awesome), but users are reporting a lot of bugs and slow customer support response times. Read about it here: http://thecollegeinvestor.com/18920/credit-karma-tax-software-review/
do they efile?
Yes, they all eFile.
I switched to TaxAct for my 2014 return after having used TurboTax for years. I was really annoyed at Intuit’s sneaky but widely reported “repositioning” of versions. They later backtracked and apologized, but it was a basically dishonest move, so I went with TaxAct. I paid $21.89 for the 2014 returns, and $18.62 for the 2015 returns, and was very happy with the programs. Not so many attempts to pick my pocket like TurboTax although there was a bit of a learning curve. But this year the price for the equivalent program is $40, over twice what I paid last year! I’ll wait and see if there is a sale, but it looks like I may be giving the IRS free fillable forms a try this year.
If you don’t have a business or rental property, we’ve found Credit Karma tax to be a excellent free option: http://thecollegeinvestor.com/18920/credit-karma-tax-software-review/
The current price (1/28/17) for TaxAct Plus is $25 for Fed + $35 for state for a total of $60!! I’ve used this program and for the last 8 or 9 years and never paid more than $20 for both (I remember $13.95 for signing on early). I also told many people I know about how good it’s price/performance was and they also switched to it.
No more for me!! The new pricing is an outrageous increase. They were obviously making money with their old business model, so I do feel like I’m being gouged. Did someone new buy the company? Maybe the company that makes EpiPens?
Adios TaxAct!!
I agree! I’m doing the same.
To be accurate, since I am just doing it just now and got shocked when I saw the pricing in the end of filing….
How would you like to pay your TaxAct product fee of $70.00? (Review your TaxAct fees)
TaxAct Online Plus and State Edition
Your Federal Return fee is $33.00 and State Return fee is $37.00.
I didn’t expect this….this is not even as the price they advertised…
I am trying other websites now.
Why do you ignore TaxSlayer? I use them and get to file with itemized deductions, investments, even a K-1, and I only pay $17 for federal and $22 for state, which is the actual cheapest option.
We definitely don’t ignore them, but we have a love/hate relationship with them. Read our full review here: http://thecollegeinvestor.com/18736/taxslayer-review-2016/
Thank you for the thorough breakdown, Robert. With multiple options from several companies, you’ve made it simple to sort out.
Cheers!
-PoF
Glad to help!
I have been using TaxAct for years now. As others have remarked, this year, TaxAct Plus went up to $40.
Well, I just got an email from them, and TaxAct Plus went up to $60. I logged in, and yes, they actually want $60 for it.
I will find something else, simply based on principle. That is true price gouging.
Like Tania, I’ve used TaxAct for 3 years and was a happy customer.
Although the original post says that TaxAct Plus is $40 (15+25), the price on their website is actually $60 (27+33).
@Robert: you may want to update the post.
I’m going back to the TurboTax Deluxe CD for $40. I’ll e-file my Federal and print+mail my State.
Inconvenient, but I no longer want to do business with Taxact. I’m sure their revenue is going up dramatically this year, but their NPS must be getting very close to -100.
I just checked as of 2/5, and TaxAct Plus is still $40.
As of today, 2/12/2017, if you download it, The price is $60. The online version is $27.
Their site does indeed have the Plus edition listed at $27. It has the Premium listed at $37. It’s $33 for each state, for either edition. So $60 for the Plus edition.
For me as someone who needs to file the Schedule C, this adds to $70… about double what I paid last year to file online as a self-employed business owner. And the price for 2015 was double what I paid in 2014. I don’t love this curve.
So though I’ve used TaxAct for also a decade now, I’m desperately seeking another, cheaper, option. I don’t make a heck of a lot in my work, and even less last year as I had a break-up, move, and major injury in 2016. The TaxAct price increase is just the last kick in the gut.
AS I mentioned in another comment, TaxAct seems to be split-testing their pricing. Multiple readers have shown screen-shots of different prices. So weird this late in the tax season.
I’ve been using TaxAct since 2009 and like other posters here, I am simply appalled at the ridiculous price hike for the 2016 package. I paid a total of $18.99 last year for the Premium package plus the additional New York state package, and now they are charging $70.00 for Premium alone! It is totally price gouging, and I’ll be delighted to see the company go down in flames. I’m dumping TaxAct and am thankful I found this post, since you are suggesting alternatives that will allow me to import all that work from TaxAct.
Just filed with taxact, plus version. Was $13.99 total for federal + state in 2015, but was $35.50 total for 2016 ($10.50 fed + $25 state). I did lock in an early rate via email but was still surprised at the price after entering all of my information for this year (info that was not imported, that is – I’ve been using taxact forever). I did leave feedback through their site after filing. Thank you for all of the reviews and information on this site. I felt a little better about the gouge after seeing the competitor prices, and after seeing that they offer a military discount.
Yes, they did send an email in Nov 2015 to lock in the discounted price for 2016. However, it did not say what the discounted price was, but only that it was 30% off. The confirmation only stated that you locked in the discounted price but again without any figures. No one expected the price increase for Fed+state would go up from $18 to $60, making the discounted price $40, which is still more than twice what I paid last year.
The taxact prices are wrong. The Plus is now $60 for fed and state…and it goes up from there. That’s up a lot from last year. We used to use it faithfully, but are looking at switching now.
In an odd approach, they are split testing their prices (we’ve had multiple readers showcase different prices). Screenshot attached:
They want 37+37 now just for plus from me. I used them last year but I will pass on their shady pricing this year – I hope it costs them a lot of business.
Also onboard with saying goodbye to TaxAct. Paid $30 for the deluxe version last year which included 5 e-files and one state…this year it is $60. I bought an extra state last year for $14.99 and this year it is $33!!!
Emailed them my displeasure and they emailed back with their reasoning, standard stuff, and offered me a 20% discount on my purchase.
Doubt I will take them up on it as a more than double price increase does not sit well with me.
So I am an artist and I sell my work and have a small home based business and also live in a state where we pay state taxes. I would like to know which service you reccomend. My husband gets a w-2. I have used TurboTax for small businesses for years, but feel like they try to hide things. When doing my taxes I really have to hunt or go back and go back to make sure I did not miss anything that could save me. Looking for a cheaper but also easier to work with system.
Another reason one might choose downloadable version is if you’re doing multiple returns (for a parent for example). Download includes multiple returns in the price. Online is one only.
Not happy with tax act. been using it over 10 years. I need the $60 dollar version for something I can’t do in a cheaper version, BUT In washington state, we don’t file state, so they are charging me for something i don’t need.
Does anyone know if Turbotax, or HR Block can convert my saved taxact file??
Taxact’s massive price increase this year has just cost them yet another long-time customer. Not sure who at Taxact is pulling the shots, but they may want to give them the boot before they completely destroy the company.
Pretty solid review. I may have to give my own taxes a try next year again. Used to do them when they were simple but now with the income properties and everything else I don’t mind paying a bit for a professional to ensure they’re done properly.
2017 for 2016 Taxes.
Turbo Tax went off the rails…
I am a long time (12+ years) user of Turbo Tax Premier. I liked it and used it because of the ability to fill out a 1099 MISC for gas well royalties. None of the other Turbo Tax offers have this form available, however Turbo Tax has raised the price almost ever year.
Back then both federal and state together were included and the price was around the 55.00.
Last year it cost me 105.00 – and this year – if I used them it would cost me 120.00 $.
What irritates the worst;
I am retired living frugally on pennies and SS (which hasn’t gotten an increase in two years) – yet everything else (cost of living) is still rising.
Anyway, I’m jumping ship.
Screw – Turbo Tax!!!
Anyone suggest which software would would have the 1099 MISC schedule E for filing royalties off gas wells?
The rest of my return is simple, just a house, a few acres of land, couple of vehicles, and a pontoon boat, (which are ALL paid for – no loans.)
Thank you,
I have used TaxAct for quite a few years. I Always used the free version w/ Itemized deductions. Just used the online version (Taxact Online Plus) to file. On the TaxAct web page the price they listed was $37+$38 for federal and state. I do need to file state, so I figured $37. I logged onto my old TaxAct account and offered the upgrade to “PLUS” for $15. Total cost was $16 something with sales tax. Weird.
Bye, Taxact. You’ve never been that great. I should know, I’ve purchased your Federal+State downloadable products for 15 years.
I recently found out that you can file for FREE on irs.gov, so I did. The site does a LOT to confirm your identity at the end (like ask you for a number from last year’s tax return). There is no interview, so you have to know what you’re doing; it does a little bit of the math for you. You can save and go back later. At the end, they can set up electronic payment (whether they owe you or you owe them); they even have you fill in the W-2 electronically, so you don’t even have to mail in the paper form. I’m not saying it’s for everyone, but it does support a fair number of extra forms. They explain a lot of it up front, so you can decide whether it is for you or not.
Out of curiosity, I went to TaxAct.com to see prices, and here is what they are for now (screen shot wouldn’t paste…):
Free: $0 Federal + $0 State.
– Optional prior year import $10
– For simple 1040EZ and 1040A filers
Plus: $37 + $38 State
– Prior year import included
– For itemizers, homeowners, and investors
Premium: $47 + $38 State
– Prior year import included
– For self-employed, freelancers, and contractors
TaxAct has ROYALLY ticked me off. Used them since 2009 (when TurboTax pulled a price-gouging trick).
I paid a $5 increase (pre-order) over my 2015 program, and thought everything was OK – UNTIL I tried to PRINT my return – when the program tells me, sorry, you need a higher version to print your return! They want an extra $10! BS! If you sell me a program, AND let me enter all my data for the schedule (C), but really won’t let me print or file the return with that program – that’s beyond sneaky, it’s downright nasty.
When I called their customer line, after holding a bit, I got a really nasty woman on the line who said it was “my fault” for not buying the version I needed. She was downright confrontational and raising her voice, and I in turn raised mine – and then she told me that I was raising my voice and if I continued she would have to hang up on me. I said, well, then hang up on me B***CH and I hung up.
Sent a request online for a refund (which they gave me), and I’m moving over to HR Block’s program for this year. Had to re-enter everything, and the price is about the same (with discount on Block’s program via coupon codes readily available) – but I’ll be damned if I’m going to give those sneaky b***s*ards at TaxAct another dime.
There is a deal on slickdeals.net to link to taxact that lowers their federal file cost to $10. The interface isn’t as easy to use as turbotax, but in terms of value, taxact came out ahead.
As prior user, Taxact tried to charge me $75 (federal filing only). Their charge on the website is a lot lower.
Then, I got TurboTax from Costco for $40. I am amazed how easy it is to switch from Taxact to TurboTax, because TurboTax automatically read my prior year information inside Taxact, and populate related fields.