Overview

TaxAct is a tax-preparation service with online, downloadable desktop, and mobile options for personal and business filing. It best suits taxpayers who need support for investments, rental income, self-employment, or business returns and want a choice of filing format. Its free tier is tightly limited, so the right fit depends on whether a paid plan’s form coverage and filing terms match your return.

Key features

TaxAct supports investment and rental income as well as self-employment. Its free edition does not: it is limited to Form 1040 without attached forms or schedules, and only certain taxpayers qualify. Free filing covers situations such as W-2, unemployment, and retirement income, while excluding investment, rental, business, and self-employed income and expenses. About 40% of users qualified for free filing based on income and deductions, making it worth checking eligibility but unwise to assume a straightforward return will qualify.

For consumer 1040 products, Xpert Assist offers unlimited live tax advice and assistance. That is a useful backstop for filers who need guidance without handing off the return, though it is not described as a service for business products. TaxAct also offers tax-data import, deduction and credit calculations, and refund-maximization tools. Its $100k Accuracy Guarantee covers qualifying software errors, including certain costs and penalties; the coverage applies to qualifying errors, not every filing outcome.

The mobile app supports filing on the go, photographing documents, tracking progress, and getting expert help. Security measures include encryption, access controls, and information-security policies. TaxAct says more than 113 million federal returns have been filed through its software since 2000.

Pricing

Online filing starts at $0 for eligible standard returns. The Free plan is $0.00 USD per free and covers an eligible federal return; state filing costs extra. Other online products let users start free and pay when filing, with no charge if they stop before printing or e-filing. Deluxe costs $59.99 USD per once for more complex taxes, including childcare and property; Premier is $99.99 USD per once for investment income; and Self-Employed is $109.99 USD per once for business owners, freelancers, side hustlers, and gig workers. State filing is additional on each of these plans. The progression is clear, but state costs can change the total, and filers whose income requires forms excluded from Free must move to a paid tier.

Download plans are priced per once: Basic Download is $44.99 USD and includes five federal e-files, with state additional; Deluxe Download is $139.99 USD and includes five federal e-files and one state return; Premier Download is $149.99 USD and includes five federal e-files and one state return, with support for investments, rental property, and foreign bank accounts. Unlimited Access costs $45.00 USD per once for credentialed tax expert access during the return. The desktop editions list monthly prices: Basic Desktop is $44.99 USD per month for five federal e-files, with state additional; Deluxe Desktop is $139.99 USD per month, Premier Desktop $149.99 USD per month, and Self Employed Desktop $164.99 USD per month, each including five federal e-files and one state return. Compare the term as well as the headline amount when choosing between desktop and download editions.

A first TaxAct consumer-prepared online 2025 federal and state return can cost one flat $70 under stated dates. A refund may be requested within the purchase calendar year if billing is complete but the return was not printed or e-filed, subject to conditions.

Platforms

TaxAct offers web filing, downloadable tax-preparation software, and a mobile app. The app’s document photography and progress views suit people handling a return away from a computer; downloadable editions are relevant to filers who prefer desktop software. Business filing covers partnerships, C corporations, S corporations, sole proprietors, and tax-exempt organizations. TaxAct Professional is designed for CPAs, enrolled agents, and tax preparers, extending its reach beyond consumer filing.

Who it's for

TaxAct is a strong candidate for individual filers whose returns need investment, rental, or self-employment support, and for small businesses choosing among several entity types. It is less compelling for anyone counting on free filing without checking eligibility and form limits, or for someone who needs state filing included in the online price. Professionals can consider TaxAct Professional, while the consumer plans and Xpert Assist specifically address individual filing needs.

Pros and cons

Pros: Coverage spans investment, rental, self-employment, and multiple business entity types, so taxpayers can stay within one product family as return complexity grows.
Pros: Download plans include up to five federal e-files, and some include a state return, which can suit preparers handling several returns.
Pros: Unlimited live advice for consumer 1040 products and an accuracy guarantee covering qualifying software errors add support beyond self-guided preparation.
Cons: Free filing excludes several common complex income types and is restricted to Form 1040 without attached forms or schedules.
Cons: State filing adds cost on the online paid plans and Free plan, making the entry price an incomplete guide to total filing cost.
Cons: Desktop subscriptions are priced per month while download editions are priced per once; the different terms require careful comparison before purchase.

Alternatives

TurboTax is worth comparing for simple Form 1040 filers: its Free Edition is $0.00 USD per free for eligible simple returns, while its Do It Yourself Deluxe is priced at 79. H&R Block Online offers a free web plan for simple Form 1040 situations and also supports iOS and Android; state filing is billed per state on its free plan.

CloudTax is a mobile alternative for basic returns, with a free plan covering two returns and a paid Plus plan priced at 39. ClearTax offers web-based DIY income-tax return filing and a Salary plan for salaried employees with a single Form 16, priced at 599.00 INR per month plus taxes. Taxumo is an API option, but its free plan excludes tax-form preparation, filing, and payment.

TaxDown offers a free simulation to calculate a tax-return result, while filing requires a plan. TaxSlayer has a Simply Free plan covering one federal and one state return. UFile offers a free online return to qualifying taxpayers.

For broader comparisons, browse Personal Tax Software, Tax Preparation Software, Small Business Tax Software, and AI Tax Software.

Verdict

Choose TaxAct if your return needs more than basic wage income, you value a choice of online or downloadable filing, or you prepare several federal returns with a download edition. Its broad income and business coverage is the central reason to choose it. Look elsewhere if your priority is a clearly free, simple return or a low total that includes state filing: TaxAct’s free eligibility is narrow, and state costs can raise the bill.

	Basetax	TaxAct
Free plan	Yes	Yes
Free trial	No	No
Paid from	£12.99/mo	$44.99/mo
Open source	No	No
Platforms	Web	Web
Free plan	Yes	Yes
Self-employment support	Yes	Yes
Investment income	Yes	Yes
Rental income	Yes	Yes
State filing	none	paid_add_on
Mobile access	web_only	web_and_mobile
Paid from	—	$44.99one-time
Audit support	—	Yes

Basetax vs TaxAct

Basetax

TaxAct