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TaxAct Review
The affordable guided alternative — covers every tax situation at half of TurboTax's price
Last reviewed: 2026-05-25 · By GBBR Editorial Team
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Our Top Pick · Silver Tier
TaxAct
Free plan available
The Bottom Line
TaxAct earns Silver as the best mid-range tax software: guided interview format like TurboTax, coverage for every federal form and schedule, and pricing that comes in 35–40% cheaper than TurboTax at every paid tier. Deluxe is $24.99 vs. TurboTax's $39. Self-Employed is $64.99 vs. $89. State returns are $44.99 — notably more expensive than TurboTax's $39 state add-on. The interface is functional but less polished, the import tools are more limited, and the $100K Accuracy Guarantee is the same principle as TurboTax's guarantee with different marketing. For cost-conscious filers who want more guidance than FreeTaxUSA offers, TaxAct is the rational middle ground.
What is TaxAct?
TaxAct was founded in 1998 by Lance Dunn and Alan Sptemporarily in Cedar Rapids, Iowa and was originally called 2nd Story Software. It was acquired by H&R Block in 2004, sold to a private equity firm in 2012, and has operated independently since. TaxAct processes millions of returns annually and competes primarily on price — positioned as the affordable alternative to TurboTax with professional-grade accuracy.
What does TaxAct offer?
TaxAct Free covers basic 1040 with W-2 income, child tax credits, and student loan interest deductions. Deluxe ($24.99 federal) handles itemized deductions, mortgage interest, and HSA. Premier ($34.99 federal) adds investment income, rental property, and K-1s. Self-Employed ($64.99 federal) covers Schedule C and freelance income. State returns cost $44.99 each. The $100K Accuracy Guarantee covers errors caused by TaxAct's software. Xpert Assist add-on provides on-demand CPA and tax expert support.
Free
$0
/year
Deluxe
$24.99
/year
Premier
$34.99
/year
Self-Employed
$64.99
/year
Is TaxAct worth the price?
35–40% cheaper than TurboTax at every paid tier — same federal form coverage, less polished experience
TaxAct Self-Employed at $64.99 vs. TurboTax Self-Employed at $89 — 27% savings for similar Schedule C coverage
Strong price-to-value at paid tiersHow we scored it
Overall score: 73/100
$100K Accuracy Guarantee for software errors; Audit Defense professional representation available as add-on
Guided interview covers all situations but the UX is less polished than TurboTax and H&R Block — more form-filling, less wizarding
Free tier covers basic 1040 with W-2 income — limited itemized deductions, no investment income, no Schedule C
Deluxe $24.99 vs. TurboTax $39 (-36%); Self-Employed $64.99 vs. TurboTax $89 (-27%) — consistent savings at every tier
W-2 import and prior year import supported; investment import is more limited than TurboTax's brokerage network
Xpert Assist adds on-demand CPA access; standard paid plans include live chat and phone support
Why TaxAct is Silver Tier
TaxAct earns Silver for solid form coverage at a meaningful price discount vs. TurboTax. The guided experience works for most filers, and the $100K Accuracy Guarantee provides confidence. It falls short of Gold because the interface is less polished, the free tier is very limited, state returns cost $44.99 (more expensive than competitors), and the import ecosystem is thinner than TurboTax's.
Pros & Cons
Pros
- ✓35–40% cheaper than TurboTax at every comparable paid tier
- ✓$100K Accuracy Guarantee covers software calculation errors
- ✓Covers all federal schedules including C, D, E, K-1
- ✓Xpert Assist adds CPA access for complex questions
- ✓Clean enough interface for most filers
Cons
- ✗State returns cost $44.99 — more expensive than TurboTax's $39 state add-on
- ✗Free tier is very limited — most filers with any complexity pay
- ✗Interface less polished than TurboTax and H&R Block
- ✗Brokerage import is less comprehensive than TurboTax Premier
Ready to try TaxAct? Free plan available — no credit card required.
Get TaxAct →Frequently Asked Questions
Is TaxAct worth it in 2026?
35–40% cheaper than TurboTax at every paid tier — same federal form coverage, less polished experience Overall verdict: Strong price-to-value at paid tiers.
What is TaxAct best for?
TaxAct is best for: Cost-conscious filers with complex returns who find FreeTaxUSA's UI too basic, Self-employed filers who want guided experience at 27% below TurboTax price, Rental property owners (Schedule E) at $34.99 vs. TurboTax's $69.
Does TaxAct have a free plan?
Yes — TaxAct offers a free tier: Free covers basic W-2 returns with limited deductions — most filers with investments or self-employment need Deluxe+.
Who should NOT use TaxAct?
TaxAct is not the right fit for: Simple W-2 filers — FreeTaxUSA files free and saves $24.99; Investors with many brokerage accounts who need deep 1099-B import (TurboTax Premier).
What are the best TaxAct alternatives?
Top alternatives to TaxAct include turbotax, hrblock, freetaxusa.
TaxAct earns Silver for solid form coverage at a meaningful price discount vs. TurboTax. The guided experience works for most filers, and the $100K Accuracy Guarantee provides confidence. It falls short of Gold because the interface is less polished, the free tier is very limited, state returns cost $44.99 (more expensive than competitors), and the import ecosystem is thinner than TurboTax's.
Get TaxAct →Free tier available — no credit card required
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