Tax software is one of the few categories where the cheapest option is also one of the best. The reason: the underlying calculations are dictated by the IRS, so what you're really buying is interface, support, and how aggressively the company tries to upsell you. FreeTaxUSA charges $15 for a state return; TurboTax charges $90 for the same forms wrapped in a friendlier UI.
This guide ranks the major players honestly.
What changed in 2026
- IRS Direct File expanded. More states are eligible, more situations are supported, and it's still free if your situation is simple enough.
- Crypto reporting matured. Most major platforms now handle 1099-DA forms automatically.
- AI tax assistants are everywhere. TurboTax, H&R Block, and Intuit's "Intuit Assist" all promise AI-driven help — quality varies; trust but verify on edge cases.
How we ranked these
- Price — total federal + state cost for a typical return.
- Capability — how complex a return it can handle (Schedule C, K-1, foreign income).
- UI/UX — how painful the experience is.
- Upsell pressure — how aggressively it tries to push you to a higher tier.
- Support — chat, phone, expert-on-demand.
1. FreeTaxUSA — best value for almost everyone
$0 federal, $15 per state. Supports W-2, 1099, Schedule C, rental income, K-1, crypto, ACA, and pretty much every situation that doesn't involve a corporate return. The interface is plainer than TurboTax — fewer animations, fewer panels, fewer upsells. Functionally identical at a tiny fraction of the cost.
The trade-off: their AI help is functional but not as polished as TurboTax. If you want a hand-held experience, this isn't it.
2. Cash App Taxes — best fully free option
Federal and state, both $0. Handles most W-2 and 1099 situations. Limited support for complex situations (multi-state, K-1s, certain credits). Best for filers under 30 with a single W-2 and the standard deduction.
The catch: doesn't support every form. Read the limitations before you start; switching mid-prep is annoying.
3. TurboTax — best UI, worst pricing
The smoothest interface, the best AI assistant, the most polished experience. Also the most expensive: Premium tier with self-employment runs $130–$170, plus $50–$70 per state. The "TurboTax Live" expert add-on is another $80–$200.
The trade-off: pricing has been a class-action target for a decade. The product is good; the cost-to-value ratio is poor.
Comparison: tax software in April 2026
| Software |
Federal |
State |
Self-employed cost |
Best for |
| FreeTaxUSA |
$0 |
$15 |
$8 add-on |
Best value |
| Cash App Taxes |
$0 |
$0 |
Limited |
Simple W-2 returns |
| IRS Direct File |
$0 |
varies |
Limited |
Eligible filers |
| H&R Block |
$0–$85 |
$40 |
$85+$40 |
In-person backup option |
| TaxAct |
$0–$70 |
$40 |
$70+$40 |
Mid-range alternative |
| TurboTax |
$0–$130 |
$40–$60 |
$130+$60 |
Polished UX, premium price |
Common mistakes to avoid
Starting with TurboTax "free" and upgrading mid-prep. Once you've entered everything, switching is painful and you'll end up paying. Pick the right software at the start.
Ignoring IRS Direct File. If you live in an eligible state and have a simple return, it's the cheapest option that exists ($0/$0).
Buying audit defense. The cost-vs-likelihood math doesn't work. If audited, hire a local CPA or EA — usually cheaper than the prepaid plans for actual representation.
FAQ
Is FreeTaxUSA actually free?
Federal yes, state $15. There's a $7.99 deluxe upgrade for priority support that almost no one needs.
What about TurboTax Live Full Service?
$200–$500 to have a CPA or EA do the return for you. For most W-2 + side hustle situations, a local CPA does the same work for similar money with better availability year-round.
Does any software handle crypto well?
TurboTax, FreeTaxUSA, and TaxAct all import directly from major exchanges. For complex situations (DeFi, NFTs), CoinTracker or Koinly first, then export the gain/loss to your tax software.
Where to go next
For related guides see How to do taxes free in 2026, Best crypto tax software in 2026, and Tax extension guide for 2026.