Best Tax Software 2025: Complete Comparison Guide

January 2025 16 min read

Tax software prices range from $0 to $200+, and choosing the wrong one can cost you money or missed deductions. This guide compares all major options to find the best fit for your tax situation.

Top Picks 2025

  • Best Overall: TurboTax (most comprehensive)
  • Best Value: H&R Block (good balance)
  • Best Free: FreeTaxUSA ($0 federal, $15 state)
  • Best for Simple Returns: Cash App Taxes (100% free)
  • Best for Self-Employed: TurboTax Self-Employed

Tax Software Comparison 2025

SoftwareFree VersionDeluxeSelf-EmployedRating
TurboTax$0 (simple)$69$129★★★★★
H&R Block$0 (simple)$55$115★★★★★
TaxAct$0 (simple)$46$95★★★★☆
FreeTaxUSA$0 federal$0$0★★★★★
Cash App Taxes$0 (all)$0$0★★★★☆
TaxSlayer$0 (simple)$43$63★★★★☆

*Prices are for federal filing. State returns typically $15-50 extra.

Detailed Reviews

BEST OVERALL

TurboTax

Why we love it: Most user-friendly interface, excellent guidance, and best for maximizing deductions. The industry standard.

  • Free: Simple returns (W-2, limited deductions)
  • Deluxe ($69): Homeowners, donations, HSA
  • Premier ($99): Investments, rental property
  • Self-Employed ($129): 1099, business deductions
  • Live help: Expert assistance available (+$)

Best for: Maximum refund, complex situations, first-time filers

BEST VALUE

H&R Block

Why we love it: Lower prices than TurboTax, equally capable, and option for in-person help at retail locations.

  • Free: Simple returns + unemployment income
  • Deluxe ($55): Itemized deductions, HSA, credits
  • Premium ($85): Investments, rental income
  • Self-Employed ($115): Business expenses, 1099
  • In-person: 10,000+ retail locations

Best for: Value seekers, those wanting in-person backup

BEST FREE

FreeTaxUSA

Why we love it: Truly free federal filing for ALL tax situations. State is only $15. No upsells.

  • Federal: $0 (all forms included)
  • State: $14.99
  • Deluxe ($7.99): Priority support, audit defense
  • Covers: Self-employment, investments, all schedules

Best for: Budget-conscious filers, complex returns on a budget

Who Should Use Free File?

IRS Free File Program

If your income is under $79,000, you may qualify for completely free tax filing through IRS partners:

  • TurboTax Free File
  • H&R Block Free File
  • TaxAct Free File
  • TaxSlayer Free File

Access at: irs.gov/freefile

Which Tax Software Do You Need?

Simple Returns (Free Version Works)

Deluxe/Premium Needed

Self-Employed Version Needed

Tax Software vs. CPA

FactorTax SoftwareCPA/Tax Pro
Cost$0-200$200-500+
Best forSimple to moderateComplex situations
SpeedDo it anytimeAppointment needed
PersonalizationQ&A guidedCustom advice
Audit supportExtra costUsually included

Consider a CPA If:

Money-Saving Tips

Common Tax Filing Mistakes

  1. Wrong filing status: Head of household vs. single matters
  2. Missing income: All 1099s must be reported
  3. Forgetting deductions: Student loan interest, HSA, etc.
  4. Math errors: Software prevents most of these
  5. Wrong bank info: Double-check for direct deposit
  6. Not signing: Electronic signature required