Best Tax Software for Individuals & Businesses in 2025 | Top Picks & Comparison

Tax season doesn’t have to be stressful. Whether you’re an individual filing a simple return or a business owner managing multiple income sources, choosing the right tax software can make all the difference. The best programs streamline data entry, reduce errors, and help you uncover deductions you might otherwise miss.

In this comprehensive guide, we’ll explore the Best Tax Software for Individuals & Businesses, comparing top options based on usability, accuracy, cost, support, and special features. We’ll also discuss how to choose the right program for your specific needs and what to look for before purchasing.

Why Using Tax Software Matters

Filing taxes manually is time-consuming and error-prone. Tax laws evolve constantly, and compliance requirements vary across jurisdictions. Modern tax software simplifies this process by:

• Automating calculations and form filling

• Importing data from W-2s, 1099s, or accounting platforms

• Identifying deductions and credits based on your situation

• Reducing audit risks through error checking

• Providing e-filing and direct-deposit options for faster refunds

For small businesses, it also integrates with bookkeeping software, ensuring your financial records align with your tax filings.

How to Choose the Right Tax Software

Selecting the right tax software depends on the complexity of your return, your budget, and the features you require. Below are key factors to evaluate before purchasing.

1. Ease of Use

Look for an interface that is intuitive, with step-by-step guidance. Many programs include interview-style questionnaires that make the process feel less technical.

2. Supported Tax Situations

If you’re self-employed, own rental property, or run a corporation, ensure the software can handle your situation. Not every program supports advanced filings such as partnerships (Form 1065) or S corporations (Form 1120S).

3. Pricing and Value

Compare not just base prices but also add-on fees — for example, state returns, audit protection, or additional users. Some programs offer free federal filing but charge for state submissions.

4. Integration Capabilities

Businesses benefit from software that connects seamlessly with accounting systems such as QuickBooks, Xero, or Wave. Integration reduces manual data entry and minimizes discrepancies.

5. Support and Guidance

Access to live chat or tax professionals is crucial, especially for complex filings. Look for software with responsive customer support, audit defense, or professional assistance options.

6. Data Security

Tax data is sensitive. Verify that your chosen platform uses encryption, two-factor authentication, and secure cloud storage.

The Best Tax Software for 2025

Below are the leading solutions that consistently earn high marks from users and financial experts.

1. TurboTax — Best Overall for Individuals and Small Businesses

Overview: TurboTax remains the industry standard for user experience and accuracy. Its interview-based interface walks users through each section with clear explanations.

Key Features:

• Guided filing process with real-time error checking

• Integration with QuickBooks for business users

• Ability to import W-2s and investment data automatically

• Live tax expert support and optional audit defense

Best For: Individuals, freelancers, and small business owners who value detailed guidance and professional support.

Pricing: Free for simple returns; paid plans start around $70 for federal filing, with additional fees for state returns.

2. H&R Block — Best for In-Person and Online Flexibility

Overview: H&R Block offers a balance between online convenience and local office support. Users can start their returns online and finish in person if needed.

Key Features:

• Cloud-based access with in-office options

• Free import from competitors like TurboTax

• Tax Pro Review service for expert validation

• Extensive resource library and community Q&A

Best For: Individuals who prefer professional backup or need help with complex business filings.

Pricing: Free for basic returns; Deluxe and Premium plans range from $55–$115 plus state filing.

3. TaxAct — Best for Value and Accuracy

Overview: TaxAct is known for delivering robust features at competitive prices. Its interface is straightforward, though slightly less polished than TurboTax.

Key Features:

• Deduction Maximizer tool

• Strong error-checking and calculation accuracy

• Cloud-based access for easy collaboration

• Integration with QuickBooks and other accounting tools

Best For: Small business owners or independent contractors seeking professional-grade features without premium pricing.

Pricing: Free basic plan; paid tiers range from $40–$100 plus state fees.

4. FreeTaxUSA — Best Budget Option

Overview: FreeTaxUSA provides impressive functionality at a low cost. While it lacks live chat or phone support, it’s ideal for straightforward filings.

Key Features:

• Free federal filing for all users

• Inexpensive state filing ($15 or less)

• Accurate calculation guarantees

• Simple interface suitable for individuals

Best For: Users confident in doing their taxes independently or those on a tight budget.

Pricing: Free federal, $14.99 per state return. Optional Deluxe upgrade adds audit assistance and live support.

5. TaxSlayer — Best for Self-Employed Individuals

Overview: TaxSlayer caters to freelancers, gig workers, and small business owners who want flexibility and control.

Key Features:

• Income tracking for self-employed users

• Step-by-step deduction finder

• Mobile-friendly design

• Priority support with Premium plans

Best For: Contractors, gig workers, and entrepreneurs who file both personal and business taxes.

Pricing: Free for simple returns; self-employed version costs around $65 plus state filing.

6. Drake Tax — Best for Accounting Professionals

Overview: Drake Tax is a professional-grade tool designed for accountants and tax preparers handling multiple clients.

Key Features:

• Support for all federal and state forms

• Batch processing and e-filing

• Advanced reporting and analytics

• Multi-user support for offices

Best For: CPAs, bookkeepers, and tax professionals serving business clients.

Pricing: Starts around $395 per year for unlimited returns.

7. TaxCalc — Best for UK and International Businesses

Overview: TaxCalc is popular in the United Kingdom and Commonwealth countries. It offers compliance with Making Tax Digital (MTD) standards and supports corporate returns.

Key Features:

• Full compliance with HMRC requirements

• Customizable modules for individuals and companies

• Cloud and desktop versions available

• Real-time calculation and validation tools

Best For: UK businesses and individuals requiring compliance with MTD for income tax and VAT.

Pricing: From £30 for personal versions to £250+ for business suites.

Comparison Table (At a Glance)

Tips for Getting the Most Out of Tax Software

1. Gather Documents Early – Collect income statements, expense records, and receipts before you start.

2. Create Backups – Always save a copy of your return and data files.

3. Use Software Integrations – Connect to accounting tools or payroll apps to save time.

4. Double-Check Deductions – Many users overlook small business expenses like subscriptions, mileage, or home office costs.

5. Review Before Filing – Even with automation, human review ensures accuracy.

Common Mistakes to Avoid

• Relying solely on free versions for complex returns

• Ignoring state-specific filing requirements

• Forgetting to update software before each tax year

• Misclassifying business expenses

• Skipping professional review when uncertain

Frequently Asked Questions

1. Can one tax software handle both personal and business filings?

Yes. Many platforms, such as TurboTax and TaxSlayer, allow you to prepare both personal and business returns within the same account, depending on your chosen plan.

2. Is free tax software reliable?

Free software works well for simple individual filings. However, if you have multiple income streams or own a business, paid versions offer advanced deductions and professional guidance.

3. How secure is online tax software?

Reputable programs use encryption and multi-factor authentication to safeguard your data. Always use strong passwords and update your software regularly.

4. Do I need a professional if I use tax software?

For straightforward returns, software is sufficient. For complex cases—such as multi-state operations, partnerships, or large asset holdings—consulting a tax professional is advisable.

5. What’s the difference between cloud-based and desktop tax software?

Cloud versions allow access from any device and store data online, while desktop software runs locally on your computer. Cloud-based options are more convenient, but desktop versions may provide additional privacy for sensitive data.

The Future of Tax Filing

The industry is shifting toward AI-powered assistance and real-time tax compliance. Some platforms now analyze financial data throughout the year, helping users plan proactively instead of reacting at filing time. Integration with government portals—such as the IRS’s Direct File program or HMRC’s Making Tax Digital—will continue to grow, simplifying compliance further.

As automation improves, users can expect faster processing, smarter deduction identification, and more accurate forecasting for quarterly payments. Businesses will particularly benefit from automatic syncing between accounting, payroll, and tax systems.

Conclusion

Choosing the Best Tax Software for Individuals & Businesses depends on your financial situation, desired level of support, and budget.

• TurboTax delivers the best all-around experience with expert help and extensive features.

• H&R Block is ideal if you prefer hybrid support—online convenience plus in-person advice.

• TaxAct and FreeTaxUSA provide great value for budget-conscious users.

• TaxSlayer shines for freelancers and small business owners.

• Drake Tax and TaxCalc cater to professionals and international users, respectively.

Ultimately, the best solution is the one that simplifies your filing process, ensures compliance, and saves both time and money. Evaluate your needs, test a few free versions, and choose the platform that feels intuitive and reliable.

A well-chosen tax software can turn tax season from a burden into a straightforward, predictable task—freeing you to focus on running your business or enjoying your hard-earned refund.