TaxAct Review: Pricing, Features and What to Expect
How does TaxAct stack up? Take a look at its pricing, features, filing methods and what to consider before choosing a tax software.
TaxAct been a trusted name in tax filing for over two decades, offering an affordable alternative to competitors like TurboTax and H&R Block. While it may not be as feature-rich or visually polished as some of its rivals, TaxAct still covers the essentials at a lower cost.
Founded in 1998, TaxAct has helped users file more than 105 million tax returns, earning a reputation for budget-friendly, no-frills service. It’s especially appealing to filers with simple returns who may qualify for free federal filing, but the platform also offers multiple tiers to accommodate more complex financial situations.
Whether you're a freelancer, homeowner, investor or just need to knock out a basic return, TaxAct has options to suit your needs.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
How much does TaxAct cost?
TaxAct stands out with competitive pricing that undercuts popular tax software providers like TurboTax and H&R Block. TaxAct offers five filing tiers, each tailored to different tax situations.
Here’s a breakdown of TaxAct’s 2025 plans:
Plan | Federal Filing | Best For | Includes |
$0 (State filing costs $39.99) | W-2 employees, students, unemployment filers | Basic returns with qualifying income and deductions. Available to filers aged 20–59 with an AGI under $84,000. Includes Child Tax Credit, education credits and unemployment income. | |
$49.99 (State filing costs $59.99) | Homeowners, families | All Free features, plus deductions for mortgage interest, childcare expenses and tools for maximizing deductions. | |
$84.99 (State filing costs $59.99) | Investors, landlords, home sellers | All Deluxe features, plus support for investment income, crypto transactions, rental property and real estate transactions. | |
$99.99 (State filing costs $59.99) | Freelancers, contractors, small business owners | All Premier features, plus tools for reporting 1099 income, managing business deductions and support for sole proprietors or LLCs. | |
$167.99 (Includes 1 State Return) | Peace-of-mind filers | Includes everything from Self-Employed, plus Audit Defense, Refund Transfer, E-file Concierge and all necessary forms bundled into one package. |
TaxAct does run promotions throughout tax season. For example, AAA members can receive 25% off both federal and state tax filings for consumer and business tax products.
Additionally, users can access the free version if they’re between the ages 20 and 59 and have an adjusted gross income of less than $84,000.
TaxAct’s features and benefits
TaxAct offers several helpful features designed to make the tax filing process smoother and more reliable. If you need additional time to file, you can submit a tax extension directly through the platform — no extra forms or third-party tools are required.
TaxAct also backs its software with a 100% Accuracy Guarantee, promising to cover any difference in your tax liability, up to $100,000, if an error results from using their system.
Additionally, the Maximum Refund Guarantee ensures that if you find a larger refund using a different provider with the same information, TaxAct will refund the cost of your software.
While TaxAct has fewer upsells than larger competitors, it does offer live assistance. Xpert Assist gives you access to live help from a tax expert for an additional $60. This feature includes unlimited questions and the option to request a quick review of your return before filing — an appealing level of support for those who want a second set of eyes without committing to full-service tax preparation.
How to file your taxes with TaxAct
You can choose between two main filing methods: TaxAct Online or TaxAct Download.
With the online version, you create an account and complete your return directly in a web browser. Your data is saved securely in the cloud, and you can access your return from any internet-connected device. Each online account supports one return.
For those who prefer to work offline or need to file for multiple people, the TaxAct Desktop software is a better fit. It allows you to save returns locally to your computer or flash drive and supports preparing and printing multiple tax returns, making it ideal for households with more than one taxpayer.
Filing with TaxAct follows a familiar step-by-step process, much like other tax software. The platform guides you through a series of questions about your income, deductions and life events to help populate the correct tax forms and identify potential credits.
As you enter information, a real-time tracker updates your estimated refund or balance due, giving you immediate insight into how your inputs affect your return.
What to know before filing with TaxAct
TaxAct is a solid choice for those seeking a no-frills, cost-effective filing experience. One of its advantages is transparent pricing with minimal upselling.
While other platforms often nudge users toward more expensive tiers or add-ons, TaxAct largely avoids that, keeping things straightforward for users who know what they need.
That said, it's important to understand the limitations of the "Free" version. To qualify, filers must be between the ages of 20 and 59 with an adjusted gross income (AGI) under $84,000.
Even if you qualify for free federal filing, state filing isn't included — you’ll pay $39.99 for state with the free plan and $59.99 if you use one of the paid tiers. So it’s worth checking your eligibility and the total cost before getting started.
Compared to TurboTax, TaxAct remains a more budget-friendly solution, particularly for those with more complex filing needs like freelancers, gig workers, and investors. Most plans are priced under $100 for federal filing, which is less than competitors.
Is TaxAct worth it? Here’s our take
TaxAct is a good option for filers who want reliable tax prep tools without paying premium prices. While it may not offer all the bells and whistles of more expensive platforms, it delivers a user-friendly experience, essential features and flexible plan options.
The platform’s clear pricing, minimal upselling and support for complex tax situations make it a smart pick for those who prioritize value over flashy extras. Just keep in mind that state filing costs can add up, and live expert help comes at an additional charge.
If you’re comfortable navigating your taxes with a bit of guidance, TaxAct is worth a closer look this tax season. No matter which tax software you choose, it’s important to assess your own financial situation and comfort level. Comparing features, pricing and the level of support you need can help you find the best fit for your unique tax scenario.
related content
-
Trump Reshapes Foreign PolicyThe Kiplinger Letter The President starts the new year by putting allies and adversaries on notice.
-
How to Plan a (Successful) Family ReunionFrom shaping the guest list to building the budget, here's how to design a successful and memorable family reunion.
-
These Unloved Energy Stocks Are a BargainCleaned-up balance sheets and generous dividends make these dirt-cheap energy shares worth a look.
-
How to Avoid Being Buried by the Tax Avalanche in Retirement: Tips From a Wealth AdviserAll that cash you have in tax-deferred accounts could launch you into a higher tax bracket when you start withdrawals. It's time to protect your income.
-
Ask the Editor, January 16: Tips for Filing Your Form 1040Ask the Editor In this week's Ask the Editor Q&A, Joy Taylor answers questions on preparing and filing your 2025 Form 1040.
-
Consider These 4 Tweaks to Your 2026 Financial Plan, Courtesy of a Financial PlannerThere's never a bad time to make or review a financial plan. But recent changes to the financial landscape might make it especially important to do so now.
-
I'm a Real Estate Expert: 2026 Marks a Seismic Shift in Tax Rules, and Investors Could Reap Millions in RewardsThree major tax strategies will align in 2026, creating unique opportunities for real estate investors to significantly grow their wealth. Here's how it works.
-
When Can Tax Planning Be an Act of Love? This Family Found OutHow can you give stock worth millions to a loved one without giving them a huge capital gains tax bill? This family's financial adviser provided the answer.
-
Turning 59½: 5 Planning Moves Most Pre-Retirees OverlookAge 59½ isn't just when you can access your retirement savings penalty-free. It also signals the start of retirement planning opportunities you shouldn't miss.
-
How to Make the Most of These 2 Tax Breaks ASAP (They Have Expiration Dates)Taxpayers can strategically use these temporary tax opportunities in particular to lock in long-term tax savings. Here's how.
-
What Changed on January 1: Check Out These Opportunities Created by the New Tax LawA deep dive into the One Big Beautiful Bill Act (OBBBA) reveals key opportunities in 2026 and beyond.
