Tax Solutions
How Much Will Tax Software Cost Your Business in 2026?
Tax software looks cheap until you actually check out. The sticker price on the box or the first pricing tier is rarely what your business ends up paying, because state filing, multi-state returns, and live expert help are almost always billed on top. So how much will tax software really cost your business in 2026? It depends on whether you file as a sole proprietor or as a corporation or partnership, and on how many of the add-ons you actually need. Here is the real math, with current prices and the fees to watch for.
Key takeaways
- Self-employed and sole proprietors (Schedule C) file with an online tier that runs roughly $53 to $125 federal, plus about $39 to $49 per state.
- Corporations and partnerships (Forms 1120, 1120-S, 1065) need dedicated business software: about $115 to $190 for desktop, or $160 to $170 federal online.
- The sticker price is not the total. State filing, extra states, and live expert help are the fees that inflate the bill.
- FreeTaxUSA is the budget path for self-employed filers: free federal, about $15 per state.
- Decide which add-ons you actually need before you start, because most upsells appear after you are already inside the software.
First, which kind of tax software do you need
The word “business” covers two very different filers, and they buy different products.
If you are a freelancer, contractor, or single-member LLC, you report business income on a Schedule C with your personal return. You use a self-employed online tier from the major consumer brands. If you run a corporation, an S corporation, a partnership, or a multi-member LLC, you file a separate business return (Form 1120, 1120-S, or 1065) and you need dedicated business tax software. Those cost more and are sold separately from the personal products. Figure out which bucket you are in first, because it sets the price range.
Self-employed and sole proprietor software (Schedule C)
This is the larger group and the more competitive market. Every product here handles a Schedule C, the self-employment tax, and common business deductions. The prices below are the federal cost plus the per-state cost for the self-employed tier.
| Product (self-employed tier) | Federal | Per state | Notes |
|---|---|---|---|
| FreeTaxUSA | Free | ~$15 | Free federal even with a Schedule C; the cheapest real option. |
| TaxSlayer Self-Employed | ~$53 | ~$40 | Lowest-cost of the guided brands; includes self-employed help. |
| TaxAct Self-Employed | ~$70 | ~$40 | Mid-priced; solid guidance without the top-tier cost. |
| TurboTax Premium | ~$99 | ~$39 | Now combines the old Premium and Self-Employed tiers; the most polished interface. |
| H&R Block Self-Employed | ~$125 | ~$49 | Priciest, but the only one with in-person office backup. |
So a single-state freelancer pays anywhere from about $15 with FreeTaxUSA to roughly $174 with H&R Block Self-Employed, for the same basic job. The gap is mostly interface polish and support, not tax accuracy.
Corporation and partnership software (Forms 1120, 1120-S, 1065)
If your business is a separate tax entity, you need business software, and the pricing works differently. Desktop products cover multiple return types for one price; TaxAct sells online business returns priced per entity type.
| Product | Federal price | Covers |
|---|---|---|
| H&R Block Premium and Business (desktop) | ~$115 | Personal plus unlimited business returns; 5 federal e-files; state e-file ~$19.95 each (NY free). |
| TurboTax Business (desktop) | ~$190 | 1120, 1120-S, 1065, multi-member LLCs, trusts and estates; 5 federal e-files; state sold separately. |
| TaxAct Partnership (1065) (online) | ~$160 | Single partnership return; state additional; Xpert Assist adds ~$89. |
| TaxAct S-Corp / C-Corp (online) | ~$170 | Single 1120-S or 1120 return; state additional. |
The desktop products are the better value if you file more than one return, since TurboTax Business and H&R Block Premium and Business both cover multiple businesses for a single price. TaxAct online charges per entity, which is fine for a single company but adds up fast if you handle several.
The fees that inflate the bill
Here is where the real cost hides. The federal price is only the start.
State filing. Almost every product charges separately to file your state return, typically $39 to $49 per state online, or about $20 per state for desktop e-file. Federal is often bundled into the software price while state is not, which is how the total creeps past the number that lured you in.
Multiple states. If your business operates in more than one state, you pay the per-state fee again for each. A company filing in two states with TurboTax Premium adds roughly $78 in state fees on top of the federal cost.
Live expert help. The big shift since the early days of tax software is the push toward paid expert help. TurboTax Live Assisted and Full Service, H&R Block Online Assist, and TaxAct Xpert Assist all add real money, from around $89 for on-demand help to several hundred dollars for having a professional prepare the return for you. These are optional, but the software is designed to offer them at exactly the moment you feel unsure.
Audit support. Basic audit guidance is usually included free, but full audit defense, where someone represents you before the IRS, is a paid add-on or a separate service. Read what “audit support” actually covers before you assume you are protected.
A worked example
Say you run a two-person partnership operating in two states and you want expert help on call. With TaxAct, that is roughly $160 for the federal partnership return, plus two state filings, plus about $89 for Xpert Assist, landing near $290 all in. The same partnership on TurboTax Business desktop starts at $190 for federal, plus a state download for each state, and expert help for business returns is a separate service. The lesson is the same one from a decade ago: the base price is the invitation, not the bill.
How to keep the cost down
You can file a legitimate business return without overpaying. A few moves help.
Match the product to your entity, not the fanciest tier. A single-member LLC does not need business software; a self-employed online tier is enough. Do not buy up.
Consider FreeTaxUSA for Schedule C. If you are self-employed and comfortable working without hand-holding, free federal plus about $15 per state is hard to beat.
Skip the expert upsell unless you need it. If your return is straightforward, the guided software is enough. Add live help only for a genuinely tricky situation, and know the price before you click.
File early. Prices often rise as the deadline approaches, so buying in February usually beats buying in April.
Frequently asked questions
How much does business tax software cost in 2026?
For self-employed filers, expect about $53 to $125 for the federal return plus $39 to $49 per state, or free federal with FreeTaxUSA. For corporations and partnerships, dedicated business software runs about $115 to $190 for desktop or $160 to $170 federal per return online, with state filing extra.
Why does tax software cost more than the advertised price?
Because state filing, additional states, and live expert help are billed separately. The advertised price usually covers only the federal return, so the real total depends on how many states you file and whether you add professional help.
Is free tax software good enough for a small business?
For a sole proprietor or freelancer filing a Schedule C, yes. FreeTaxUSA handles self-employment income on its free federal tier and charges only for state returns. For corporations and partnerships filing 1120, 1120-S, or 1065, you will need paid business software.
Do I have to pay extra to file state taxes?
Almost always. Most products bundle federal filing into the price and charge per state on top, usually $39 to $49 online or about $20 per state for desktop e-file. Multi-state businesses pay that fee for each state.
Which business tax software is the cheapest?
For self-employed filers, FreeTaxUSA (free federal) and TaxSlayer are the lowest cost. For corporation and partnership returns, H&R Block Premium and Business desktop at around $115 is the best value, especially if you file more than one return, since it covers unlimited business returns for one price.
The verdict
The honest answer to how much tax software will cost your business is: more than the price on the front of the box, but probably less than an accountant. A self-employed filer can get done for $15 to about $175 depending on brand and states; a corporation or partnership should budget roughly $115 to $300 once state filing and any expert help are included. The way to control it is to match the product to your entity, add only the help you need, and count the state fees before you buy, not after.
Still weighing your options? Read our side-by-side TurboTax vs H&R Block comparison to see how the top two tax filing solutions stack up for a business like yours.
Sherman Hsieh
Independent analysis of enterprise software — ERP, CRM and more
