TurboTax vs. TaxAct Comparison Guide (2025 Edition)
Written by
Jacob Wade
Edited by
Melanie Grafil
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TurboTax and TaxAct offer intuitive online tax filing platforms with free and paid tiers. TurboTax is known for ease of use and live support, but is more expensive, while TaxAct is more affordable but requires more DIY effort. Here’s how they compare.
Key Differences Between TurboTax and TaxAct
TurboTax and TaxAct have a lot in common when it comes to the user experience. The two platforms offer free versions with similar functionality and limitations, and both scale up, adding more features with each progressive price tier.
They both reassure users with similar guarantees for accuracy and maximum refunds, and both provide many different options for DIYers and those who require professional guidance.
Where they differ, though, is price and ease of use.
TurboTax
TurboTax, the industry leader, generally costs more than TaxAct but provides more substantial guidance and a more streamlined experience. If users get in trouble, TurboTax unveils a questionnaire that guides them to the right choice.
Tax Act
On the other hand, TaxAct users might have to muddle their way through. Plus, TaxAct can tug at your wallet in other ways.
Its free version charges a hefty fee for state returns. Also, TaxAct offers functionality comparable to what the more expensive TurboTax price tiers deliver, but only in the form of add-ons that can quickly add up to parity in pricing. Before delving into those details, here’s a look at the cost structure of TurboTax and TaxAct, along with the features and functionality at each price point.
TaxAct vs. TurboTax Pricing and Feature Comparison
You’ll find the right software provider at the intersection of cost and capability. Here’s a breakdown of the pricing and features you can expect from both:
| Tier | TaxAct | TurboTax | Need To Know |
|---|---|---|---|
| Free | -$0 federal -$54 state |
$0 federal and state, if eligible) | Both only support very simple returns |
| Deluxe | -$54.99 federal $64.99 state |
-Up to $139 federal -Up to $64 state |
TurboTax includes more guidance and support |
| Premier / Assisted | -$94.99 federal -$64.99 state |
-$79-$209 federal -Up to $64 state |
Best for investors or crypto users |
| Self-Employed | -$109.99 federal -$64.99 state |
-$219 and up for federal -Up to $69 state |
For business income and contractor returns |
| Full Service (TurboTax) | N/A | -Starts at $129 for federal -Up to $69 state |
TurnpTax prices vary based on complexity |
| Add-ons (TaxAct) | $45-$176.97 (bundle) |
N/A | Optional TaxAct assistance adds $45 to any service tier |
Feature Comparison: What You Get at Each Price Point
Both TaxAct and TurboTax offer pricing tiers with features to accommodate different tax situations. Here’s how those features compare:
Free Editions
TurboTax Free Edition
- Federal and state returns
- W-2 income
- Earned Income Tax Credit (EITC)
- Child tax credits
- Mobile filing with document upload
- Simple returns only (Form 1040 with limited credits or deductions)
TaxAct Free Edition
- Federal and state returns
- W-2 income
- Education credits (Form 1098-T)
- Child tax credits
- Unemployment income (Form 1099-G)
- Simple returns (Form 1040 only)
What makes them different? TaxAct Free Edition includes education credits and unemployment income, whereas TurboTax can handle mobile filing.
Deluxe Tiers
TurboTax Basic:
- Itemized deductions
- HSA and childcare credits
- W-2 and 1099 import
- AI-powered assistant
TaxAct Deluxe includes:
- All Free features
- Homeowner deductions
- HSA support
- Childcare credits
What makes them different? TurboTax will hold your hand through the filing process, but TaxAct might be a bit cheaper to use.
Investor Tiers
TurboTax Live Assisted includes:
- All Deluxe features
- Investment income, such as stocks, crypto, ESPPs
- Rental property income and deductions
- Prior year comparison
- Phone and chat support
TaxAct Premier includes:
- All Deluxe features
- Investment income, including stocks, crypto, ESPPs
- Rental property income and deductions
- Donation and mortgage interest support
- Phone support
What makes them different? TurboTax is highly interactive, whereas TaxAct offers one flat rate.
Self-Employed Tiers
TurboTax Live Assisted Self-Employed includes:
- All Premier features
- Business income (1099-NEC, Schedule C)
- Industry-specific deductions
- Expense tracking via QuickBooks integration
- Year-round tax estimator
- Phone and chat support
TaxAct Self-Employed includes:
- All Premier features
- Business income (1099-NEC, Schedule C)
- Freelancer and contractor deductions
- Depreciation and vehicle expense tracking
- Year-round planning resources
- Phone support
What makes them different? You can integrate TurboTax with QuickBooks. If you’re a freelancer, you might find the TaxAct a smoother filing experience.
Full-Service Options
TurboTax Full Service includes:
- A tax expert prepares, reviews and files your return for you
- One-on-one video call with your expert before filing
- Same-day filing is possible with complete docs
- Year-round access to experts
- Pricing varies by return complexity; additional cost for state filing
TaxAct Xpert Full Service includes:
- CPA/EA prepares and files your return
- Unlimited expert help via screen share
- Flat-rate pricing includes federal and state
- Real-time support and audit defense
- Transparent pricing, no upsells
What makes them different? You may like the TurboTax face-to-face video filing option, but TaxAct’s pricing is competitive and worthy of consideration.
Ease of Use: TurboTax vs. TaxAct
As the price comparison shows, TaxAct customers gain access to more complex tax solutions as they level up to each new price point. On the other hand, TurboTax price increases to buy you greater access to live help, professional guidance and ongoing support.
TaxAct keeps prices low by eliminating the many bells and whistles that make TurboTax one of the market’s most user-friendly yet expensive software platforms.
How Are TaxAct and TurboTax Similar?
There are many similarities. For example, both follow a simple interview-style format that guides users through and lets them skip around to and from sections, and both display progress banners that let you know where you are in the process.
Both TaxAct and TurboTax streamline the importation of familiar documents like W-2s and prior-year returns, but TurboTax also makes it easy to grab information from its own QuickBooks services and commonly used outside platforms like Uber. TaxAct does not.
Free Filing: What’s Included?
Both TaxAct and TurboTax offer free federal returns to filers with simple tax situations. Neither has an income limit, but they have other limitations and qualifying standards you need to know about before you decide.
| Criteria | TurboTax Free | TaxAct Free |
|---|---|---|
| W-2 Income | ✅ | ✅ |
| Retirement Income | ✅ | ✅ |
| Student Loan Interest | ✅ | ✅ |
| Child Tax Credit / EITC | ✅ | ✅ |
| Schedule A or C | ❌ | ❌ |
| HSA, Crypto, Business Income | ❌ | ❌ (adds more exclusions) |
| Free State Return | ✅ | ❌ ($54 per state) |
TurboTax
You can qualify for the free TurboTax service with a Form 1040 that includes:
- W-2 income
- 1099-INT/1099-DIV/1099-OID forms that don’t require filing a Schedule B and stick only to interest, dividends and original discounts.
- Retirement plan distributions
- Student loan interest deductions
- The Earned Income Tax Credit and/or Child Tax Credit
- IRS standard deduction
You won’t qualify if your Form 1040 includes:
- Schedule A itemized deductions
- Crypto and stock sales
- 1099-G unemployment income
- Rental property income or sales
- Business or 1099-NEC income from freelance work or side hustles
- Income, credits and deductions reported on other forms or schedules
TaxAct
TaxAct has the same standards for the situations that qualify for its free option, but it adds the following situations to its list of disqualifiers:
- Adoption credits and dependent and child care
- HSAs
- Royalty, trusts, and foreign accounts
- Business and farm income
As you can see, the limitations and features are nearly identical, but the main difference is that if your federal return is free with TurboTax, so, too, is your state return. With TaxAct, you’ll pay a few cents under $40, whether you qualify for a free return or not.
Add-Ons and Optional Services
TurboTax is a more comprehensive and user-friendly service that you should expect to pay more to use — unless you want to buy access to similar features with TaxAct upgrades.
The platform lets users at any price level add Xpert Assist live tax assistance for $45.
That bumps its service tiers up to the following prices, which are much more comparable to TurboTax’s offerings:
- $45
- $99.99
- $139.99
- $154.99
TaxAct also offers an “all-inclusive bundle” for $176.97 that includes:
- One federal and one state return
- E-file concierge
- Audit protection
- Refund transfer
TurboTax prices vary, but you must start your return and then upgrade along the way as you’re filling out your return. A pricing breakdown is not available on the TurboTax website for each service. This is why there are price ranges for each level of service with TurboTax.
Pros and Cons of TurboTax and TaxAct
Both programs have a lot to offer anyone looking to do their own taxes, no matter how simple or complex their situation is. But both also have drawbacks to consider.
Ultimately, TaxAct and TurboTax are best for different tax situations.
TaxAct is best for:
- Budget-conscious users with DIY tax experience
TurboTax is best for:
- Users who want maximum support, guidance and a streamlined interface
TaxAct Pros and Cons
Here’s what to like — and what to watch out for — with TaxAct.
Pros
- Affordable price
- Available Xpert Assist with all online versions of TaxAct software
- All-inclusive bundle available with Audit Defense and E-File Concierge
- Expanded hours for phone support on peak days
Cons
- Common deductions and personal income types not included with the Free version
- No free state returns even for those who qualify for free federal returns
TurboTax Pros and Cons
Here’s what you need to know about the benefits and drawbacks of using TurboTax to prepare and file your taxes.
Pros
- Free version includes forms TaxAct doesn’t
- State returns are free if you qualify for free federal filing
- Imports prior-year returns from more providers
- Free audit support
- Offers optional tax preparation services
- Community forum for assistance
Cons
- Expensive paid versions with higher-priced service tiers across the board
Which Tax Software Is Best for You?
TaxAct and TurboTax are full-featured programs that make preparing accurate returns as painless as possible. But both are designed with different types of users in mind.
Choose TurboTax if:
- You want audit support and expert help.
- You’re filing with crypto, investments or side hustle income.
- You value user experience and live guidance.
Choose TaxAct if:
- You’re comfortable filing on your own.
- You want lower upfront prices.
- You’re OK with paying for add-ons selectively.
TurboTax vs. TaxAct FAQ
If you're looking for answers to some of your questions about TaxAct vs. TurboTax, take a look below.- Are TurboTax and TaxAct the same thing?
- Although TurboTax and TaxAct essentially do the same thing -- help you prepare and file your tax returns -- each has several versions with unique features and ways to support you as you work.
- Can I switch from TurboTax to TaxAct?
- You can switch from TurboTax to TaxAct by uploading a PDF of a prior-year return.
- How reliable is TaxAct?
- TaxAct is a reliable program that guarantees you'll receive the maximum refund available and that its software is 100% accurate.
- Can I import my prior return into TaxAct or TurboTax?
- Yes, both tax software programs allow you to import past returns to get you a head start on this year’s tax return.
- Does TurboTax or TaxAct offer audit support?
- TurboTax offers audit support for all customers through customer service, but audit defense is an add-on you’ll have to pay for. TaxAct also offers basic audit support to answer questions, but you’ll have to pay for an add-on for audit defense through partner ProtectionPlus.
- Are there any hidden fees with either platform?
- While both platforms list fees for services offered, TurboTax doesn’t show you a list of fees for every service, but rather gives you a price range. For example, TurboTax Basic can cost anywhere from $0 to $139, which is a very wide range. This makes it hard to compare prices with competitors.
Andrew Lisa, Daria Uhlig, Krista Baum and Taylor Bell contributed to the reporting for this article.
Data is accurate as of April 23, 2025, and is subject to change.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
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