ads
Tax season 2026 is here, and this year brings significant changes that could put more money in your pocket — or cost you if you file incorrectly.
The One Big Beautiful Bill Act introduced major tax reforms including new deductions for seniors, overtime pay exemptions, tip income exclusions, and increased child tax credits.
With so many changes, choosing the right tax software matters more than ever.
This guide compares the best tax software options for 2026, helping you find the perfect fit for your tax situation and budget.
Whether you have a simple W-2 or complex investments, there’s a solution that maximizes your refund while minimizing what you pay to file.
ads
Important Notice: Tax laws change frequently. This guide provides general information about tax software options. For specific tax advice regarding your situation, consult a qualified tax professional or CPA.
Table of Contents
- What’s New for Tax Season 2026
- How We Evaluated Tax Software
- Best Tax Software Overview
- TurboTax: Best Overall Experience
- H&R Block: Best for In-Person Support
- FreeTaxUSA: Best Budget Option
- TaxAct: Best Value for Complex Returns
- TaxSlayer: Best for Self-Employed
- Cash App Taxes: Best Completely Free Option
- Complete Pricing Comparison
- Which Tax Software Is Right for You?
- Tips to Maximize Your Refund in 2026
- Frequently Asked Questions
1. What’s New for Tax Season 2026
The 2026 tax filing season brings substantial changes that affect nearly every American taxpayer.
One Big Beautiful Bill Act Changes
The landmark legislation signed in July 2025 permanently extended the 2017 tax cuts and introduced several new provisions affecting 2025 tax returns filed in 2026.
The new $6,000 senior deduction allows taxpayers 65 and older to claim an additional standard deduction. This stacks on top of existing deductions and could significantly reduce tax liability for older Americans.
ads
Tip income up to $25,000 is now exempt from federal income tax through 2029. Service industry workers can exclude qualifying tips from taxable income, potentially saving thousands.
Overtime pay exemptions allow certain workers to deduct overtime earnings, reducing their tax burden. The specifics depend on income levels and employment type.
The child tax credit increased to $2,200 per qualifying child, up from $2,000. This credit directly reduces your tax bill dollar-for-dollar.
Standard Deduction Increases
The standard deduction rose for 2025 tax returns filed in 2026. Single filers can claim $16,100, up from $15,000. Married couples filing jointly can claim $32,200, up from $30,000. These increases help offset inflation and reduce taxable income.
401(k) Contribution Limits
The contribution limit for 401(k) plans increased to $24,500 for 2026, with catch-up contributions of $8,000 for those 50 and older. Higher contribution limits mean more opportunities for tax-advantaged savings.
Why Software Choice Matters More This Year
With so many new provisions, tax software must accurately apply the latest rules to maximize your benefits. Not all software updates at the same pace or handles complex situations equally well. Choosing the right tool ensures you claim every deduction and credit you’re entitled to.
2. How We Evaluated Tax Software
We assessed tax software across criteria that matter most to filers.
Ease of Use
The best software guides you through the filing process with clear questions and explanations. Complex tax situations shouldn’t require a tax degree to navigate.
Accuracy Guarantees
Top providers guarantee their calculations and cover penalties if their software makes errors. These guarantees provide peace of mind when filing.
Pricing Transparency
Hidden fees frustrate users who start with “free” software only to face charges at filing time. We evaluated true costs for various tax situations.
Feature Completeness
Different filers need different features. W-2 employees have simpler needs than self-employed individuals with business expenses, investments, and rental properties.
Support Options
When questions arise, accessible support makes the difference between frustration and resolution. We considered chat, phone, and in-person support availability.
Refund Speed
How quickly you receive your refund depends partly on software efficiency and filing method. E-filing with direct deposit consistently delivers fastest results.
3. Best Tax Software Overview
| Software | Best For | Federal Filing | State Filing | Guarantee |
|---|---|---|---|---|
| TurboTax | Overall experience | $0-$219 | $0-$64 | 100% Accuracy |
| H&R Block | In-person support | $0-$195 | $0-$55 | 100% Accuracy |
| FreeTaxUSA | Budget filers | $0 | $14.99 | 100% Accuracy |
| TaxAct | Complex returns | $0-$149 | $0-$54 | $100k Accuracy |
| TaxSlayer | Self-employed | $0-$62 | $0-$42 | 100% Accuracy |
| Cash App Taxes | Completely free | $0 | $0 | 100% Accuracy |
4. TurboTax: Best Overall Experience
TurboTax remains the most popular tax software for good reason — it delivers the smoothest filing experience with the most comprehensive guidance.
Why It Stands Out
TurboTax has refined its interface over decades, creating an experience that feels like a conversation rather than a tax form. The software asks plain-English questions and translates your answers into the appropriate tax entries.
For 2026, TurboTax has fully integrated all One Big Beautiful Bill Act provisions. The software automatically identifies whether you qualify for the senior deduction, tip income exclusion, overtime exemptions, and other new benefits.
Key Features
TurboTax’s interview-style approach guides users through every possible deduction and credit. The software remembers your information year-over-year, making subsequent filings faster.
Import capabilities allow automatic population of W-2s, 1099s, and investment information from thousands of employers and financial institutions. This reduces manual entry and potential errors.
The Audit Support Center provides guidance if the IRS questions your return. Higher-tier plans include full audit defense with representation.
TurboTax Live connects you with CPAs and tax experts via video chat for real-time help. You can even have an expert review your return before filing.
Pricing Tiers
TurboTax Free Edition handles simple returns with W-2 income and limited credits. It genuinely works for straightforward situations but pushes upgrades for anything beyond basics.
TurboTax Deluxe costs approximately $89 for federal filing and handles itemized deductions, HSA contributions, and more complex situations. Most homeowners need at least this tier.
TurboTax Premier runs around $139 and adds investment income support including stocks, bonds, cryptocurrency, and rental properties.
TurboTax Self-Employed costs approximately $169 and covers freelancers, contractors, and small business owners with Schedule C filing.
State returns cost an additional $49-$64 depending on tier.
Who Should Choose TurboTax
TurboTax suits filers who value a polished experience and don’t mind paying premium prices. If you want maximum guidance through complex situations or appreciate the option to consult live experts, TurboTax delivers.
5. H&R Block: Best for In-Person Support
H&R Block uniquely combines software convenience with access to thousands of physical locations for in-person assistance.
Why It Stands Out
No other tax software provider offers H&R Block’s hybrid model. Start your return online, then walk into any of 10,000+ offices if you need help. This flexibility appeals to filers who want DIY convenience with professional backup.
H&R Block’s software rivals TurboTax in polish while typically costing less. The interface guides users effectively through the filing process with clear explanations.
Key Features
The ability to switch between online filing and in-person assistance sets H&R Block apart. You can begin online and transfer your return to a tax professional seamlessly.
H&R Block imports prior-year returns from TurboTax and other competitors, making switching easy. W-2 and financial document imports work reliably.
The Tax Pro Review option lets an expert check your DIY return before filing. This catches errors without requiring full professional preparation.
H&R Block’s mobile app allows complete return preparation on your phone, matching desktop functionality.
Pricing Tiers
H&R Block Free Online covers simple returns including W-2 income, unemployment, and retirement income. It’s more generous than TurboTax’s free tier.
H&R Block Deluxe costs approximately $55 and handles itemized deductions, student loan interest, and education credits.
H&R Block Premium runs around $85 and adds Schedule C for self-employment, plus investment income reporting.
H&R Block Self-Employed costs approximately $115 and provides the most comprehensive coverage for freelancers and business owners.
State returns add $37-$55 depending on tier.
Who Should Choose H&R Block
H&R Block suits filers who want quality software with the option for in-person help. If you prefer having a local office to visit when questions arise, H&R Block provides that safety net at reasonable prices.
6. FreeTaxUSA: Best Budget Option
FreeTaxUSA proves you don’t need to spend big money for quality tax software — federal filing is completely free regardless of complexity.
Why It Stands Out
FreeTaxUSA charges nothing for federal returns, including complex situations that other software charges $100+ to handle. Self-employment income, investments, rental properties — all free for federal filing.
Despite the low price, FreeTaxUSA delivers capable software that handles the same forms and situations as expensive competitors. It’s not fancy, but it works.
Key Features
All federal tax situations are covered at no cost. Schedule C, Schedule D, Schedule E, and other complex forms file for free.
FreeTaxUSA updates quickly for tax law changes. The software has already incorporated 2026 provisions including new deductions and credits.
Prior-year return imports and basic document imports streamline data entry. The process isn’t as automated as TurboTax but functions adequately.
Email support is included free, with phone support available for a $7.99 upgrade. Response times are reasonable for a budget provider.
Pricing
Federal filing is completely free for all tax situations. This includes self-employment, investments, rental income, and everything else.
State returns cost $14.99 each — the only required payment for most filers.
The Deluxe upgrade at $7.99 adds priority support, amended returns, and audit assistance. It’s optional but worthwhile for the peace of mind.
Who Should Choose FreeTaxUSA
FreeTaxUSA suits budget-conscious filers comfortable with less hand-holding. If you understand your tax situation reasonably well and want to minimize costs, FreeTaxUSA delivers legitimate savings without sacrificing accuracy.
7. TaxAct: Best Value for Complex Returns
TaxAct occupies the middle ground between budget options and premium software, offering robust features at moderate prices.
Why It Stands Out
TaxAct provides more guidance than FreeTaxUSA while costing less than TurboTax or H&R Block. The software handles complex situations competently without nickel-and-diming users.
For filers with moderately complex returns who want more support than bare-bones options provide, TaxAct delivers solid value.
Key Features
TaxAct’s interface walks users through deductions and credits with clear explanations. It’s not as polished as TurboTax but communicates effectively.
The software includes a $100,000 accuracy guarantee covering calculation errors. This robust guarantee provides filing confidence.
TaxAct stores up to seven years of returns for easy access and comparison. Year-over-year data import simplifies repeat filing.
Xpert Help provides on-demand access to tax professionals via chat or phone for an additional fee.
Pricing Tiers
TaxAct Free covers simple returns with W-2 income only. It’s more limited than H&R Block’s free tier but genuinely free for qualifying returns.
TaxAct Deluxe costs approximately $49 and handles itemized deductions and common credits.
TaxAct Premier runs around $79 and adds investment income, rental properties, and more complex situations.
TaxAct Self-Employed costs approximately $99 for freelancers and small business owners.
State returns add $39-$54 depending on tier.
Who Should Choose TaxAct
TaxAct suits filers with moderately complex returns who want more guidance than FreeTaxUSA provides without paying TurboTax prices. It’s a reliable middle-ground choice.
8. TaxSlayer: Best for Self-Employed
TaxSlayer offers surprisingly complete self-employment features at prices significantly below competitors.
Why It Stands Out
Self-employed filers often face the highest prices from tax software. TaxSlayer’s Self-Employed tier costs just $62 — less than half what TurboTax charges for similar capabilities.
The software handles Schedule C, business expenses, home office deductions, and estimated tax calculations competently despite the lower price.
Key Features
TaxSlayer’s self-employment interview captures income, expenses, and deductions systematically. The guidance helps freelancers claim legitimate deductions they might miss.
The software calculates quarterly estimated tax payments based on your return. This helps self-employed filers avoid underpayment penalties.
Year-round support access assists with tax questions beyond filing season. This benefits self-employed filers managing taxes throughout the year.
IRS inquiry assistance comes included with paid tiers, providing support if questions arise about your return.
Pricing Tiers
TaxSlayer Simply Free covers basic W-2 returns at no cost. It’s limited but functional for simple situations.
TaxSlayer Classic costs approximately $34 and handles all common tax situations including retirement income and education credits.
TaxSlayer Premium runs around $49 and adds priority support and audit assistance.
TaxSlayer Self-Employed costs approximately $62 and includes comprehensive self-employment support.
State returns add $39-$42 depending on tier.
Who Should Choose TaxSlayer
TaxSlayer suits self-employed filers seeking capable software at modest prices. If you’re a freelancer or contractor who doesn’t want to overpay, TaxSlayer delivers serious value.
9. Cash App Taxes: Best Completely Free Option
Cash App Taxes offers genuinely free filing for both federal and state returns with no paid tiers whatsoever.
Why It Stands Out
Cash App Taxes is the only major option that’s completely free for all tax situations including state filing. There are no premium tiers, no upsells, no surprise charges.
The service supports complex situations including self-employment, investments, and rental income — all at no cost.
Key Features
Federal and state filing are both completely free. This saves $50+ compared to even budget competitors for filers with state returns.
Cash App Taxes handles most common tax situations. The software supports W-2s, 1099s, Schedule C, investments, and rental income.
The interface is straightforward if somewhat basic. It lacks the polish of premium options but functions adequately.
Refund tracking and direct deposit work seamlessly, especially for Cash App users.
Limitations
Cash App Taxes doesn’t support every tax situation. Complex scenarios like multiple state returns, certain business types, and some specialized forms aren’t available.
Customer support is limited compared to paid options. You won’t find phone support or in-depth assistance.
The service requires a Cash App account, though you don’t need to use Cash App for anything else.
Who Should Choose Cash App Taxes
Cash App Taxes suits filers with common tax situations who want to pay absolutely nothing. If your return falls within supported scenarios and you’re comfortable with basic support, it’s genuinely free.
10. Complete Pricing Comparison
| Software | Simple Return | Itemized/Credits | Self-Employed | State (each) |
|---|---|---|---|---|
| TurboTax | $0 | $89-$139 | $169-$219 | $49-$64 |
| H&R Block | $0 | $55-$85 | $115-$195 | $37-$55 |
| FreeTaxUSA | $0 | $0 | $0 | $14.99 |
| TaxAct | $0 | $49-$79 | $99-$149 | $39-$54 |
| TaxSlayer | $0 | $34-$49 | $62 | $39-$42 |
| Cash App Taxes | $0 | $0 | $0 | $0 |
Total Cost Examples:
For a simple W-2 return with one state:
- Cash App Taxes: $0
- FreeTaxUSA: $14.99
- TaxSlayer: $39
- TaxAct: $39
- H&R Block: $37
- TurboTax: $49
For self-employed with one state:
- Cash App Taxes: $0
- FreeTaxUSA: $14.99
- TaxSlayer: $104
- TaxAct: $153
- H&R Block: $170
- TurboTax: $233
11. Which Tax Software Is Right for You?
Choose TurboTax if:
- You want the most polished, guided experience
- You’re willing to pay premium prices for convenience
- You want access to live expert help
- You have complex investments or business income
Choose H&R Block if:
- You want the option for in-person assistance
- You prefer a balance of quality and price
- You’re switching from another provider
- You want Tax Pro Review before filing
Choose FreeTaxUSA if:
- You want to minimize costs without sacrificing accuracy
- You’re comfortable with less hand-holding
- You have complex returns but limited budget
- You don’t need phone support
Choose TaxAct if:
- You want middle-ground pricing with solid features
- You have moderately complex returns
- You value strong accuracy guarantees
- You want year-round access to your returns
Choose TaxSlayer if:
- You’re self-employed and budget-conscious
- You need quarterly estimated tax help
- You want capable software without overpaying
- You need year-round support access
Choose Cash App Taxes if:
- You want completely free filing including state
- Your tax situation is relatively common
- You’re comfortable with basic support
- You already use or don’t mind using Cash App
12. Tips to Maximize Your Refund in 2026
Beyond choosing the right software, these strategies help maximize your refund.
Claim All New Deductions
Ensure your software applies the senior deduction if you’re 65+, tip income exclusion if you work in service industries, and overtime exemptions if applicable. These new provisions could save thousands.
Don’t Overlook Common Deductions
Student loan interest, educator expenses, HSA contributions, and state sales tax often go unclaimed. Let your software identify every applicable deduction.
Maximize Retirement Contributions
401(k) contributions up to $24,500 reduce taxable income directly. Catch-up contributions add another $8,000 for those 50+. IRA contributions may also be deductible depending on income.
Consider Itemizing
Even with higher standard deductions, itemizing may benefit you if you have substantial mortgage interest, state taxes, charitable contributions, or medical expenses exceeding 7.5% of income.
File Electronically with Direct Deposit
E-filing with direct deposit delivers refunds fastest — typically within 21 days. Paper filing can take months.
Review Before Submitting
Use your software’s review features to catch errors. Mistakes delay refunds and may trigger IRS inquiries. Take time to verify everything before filing.
13. Frequently Asked Questions
When does tax season 2026 start?
The IRS begins accepting 2025 tax returns on January 26, 2026. The filing deadline is April 15, 2026.
Which free tax software is actually free?
Cash App Taxes is completely free for federal and state filing. FreeTaxUSA offers free federal filing with $14.99 state returns. Other “free” options typically have income or form limitations.
Is TurboTax worth the higher price?
TurboTax delivers the most polished experience and comprehensive guidance. Whether that’s worth 2-3x the cost of alternatives depends on how much you value convenience and support.
Can I switch tax software from last year?
Yes. All major software imports prior-year returns from competitors. H&R Block specifically emphasizes easy switching from TurboTax.
What’s the $6,000 senior deduction?
The One Big Beautiful Bill Act created a new $6,000 deduction for taxpayers 65 and older. This adds to the existing standard deduction, reducing taxable income further for seniors.
Are tips really tax-free now?
Tip income up to $25,000 is exempt from federal income tax through 2029. This applies to tips reported as income — your software should apply this automatically if you indicate tip income.
Should I file as soon as possible?
Filing early generally gets refunds faster. However, ensure you have all documents before filing. Amended returns delay refunds significantly.
What if I can’t afford to pay what I owe?
The IRS offers payment plans for taxpayers who can’t pay in full. File on time even if you can’t pay — failure-to-file penalties exceed failure-to-pay penalties.
The Bottom Line
Tax season 2026 brings significant changes that could impact your refund substantially. The right software ensures you claim every benefit you’re entitled to under the new tax laws.
For most filers, FreeTaxUSA offers the best value — free federal filing regardless of complexity with just $14.99 for state returns. Budget-conscious filers with complex situations should start here.
For those wanting premium guidance and live support, TurboTax delivers the most polished experience — at premium prices.
For self-employed filers, TaxSlayer provides excellent value with capable features at a fraction of competitor prices.
And for filers wanting absolutely free filing including state returns, Cash App Taxes delivers if your situation falls within supported scenarios.
Whatever you choose, file electronically, choose direct deposit, and review carefully before submitting. Your maximum refund awaits.
Disclaimer
This guide provides general information about tax software options and is not tax advice.
Tax laws are complex and change frequently. For advice specific to your situation, consult a qualified tax professional, CPA, or enrolled agent.
Pricing and features change frequently. Verify current information on official software websites before purchasing.
The author is not affiliated with any tax software company mentioned. This guide is for educational and informational purposes only.
Last updated: January 2026
Tax season waits for no one. Choose your software and file with confidence.
