Drake Software

What Drake Software does

Drake Software is a Franklin, North Carolina-based provider of professional tax preparation software serving more than 70,000 US tax and accounting firms that collectively process over 36 million federal and state returns annually. Founded in 1977 and now operating as Drake Software, LLC under the Taxwell holding company (controlled by private equity firm Cinven alongside sister brand TaxAct), the company sells an integrated ecosystem centered on its flagship Drake Tax desktop platform and the cloud-based Drake Tax Online launched in September 2025, both powered by a proprietary tax engine supporting 4,300+ forms across individual and business returns.

The product stack extends beyond core preparation into workflow automation (Drake Workflow, $299.99/year), secure client portals with AI-powered document classification (Drake Portals), IRS-compliant e-signatures (Drake E-Sign), integrated payment processing (Drake Pay, Drake Refund Pay) powered by Launchpay and bank-partnered with Pathward and SVB/First Citizens, document management (Drake Documents), bookkeeping and payroll (Drake Accounting), and tax scenario planning (Drake Tax Planner), with bundled pricing through Practice Essentials ($599-$849/year, ~40% savings versus a la carte) and free conversion imports from competitor platforms including Lacerte, ProSeries, UltraTax, TaxAct, and TurboTax.

Drake generates revenue primarily through annual software subscriptions tiered by return volume for the desktop product and by per-return pricing plus a first-user license for the cloud product, supplemented by recurring add-on subscriptions (Portals, Workflow), usage-based e-signature events, and transaction fees on Drake Pay. Distribution is direct via a dedicated sales team, website self-service with free trials, and an extensive in-person seminar and webinar program across major US cities. The company is led by President and CEO Dom Morea, with Dermot Halpin serving as Executive Chair across Drake and TaxAct under Taxwell. Drake holds SOC 2 Type II certification, maintains active regulatory engagement through IRS Security Summit and ETAAC leadership, and has earned six consecutive years of #1 ranking in CPA Practice Advisor's Federal & State Income Tax Preparation category.

Name

Drake Software

Legal name

Drake Software, LLC

Website

https://drakesoftware.com

Company type

Private

Founded year

1977

Operating status

Operating

Headcount range

501–1,000 employees

Short description

Drake Software, founded in 1977 and based in Franklin, NC, provides integrated professional tax preparation software and workflow tools to over 70,000 US tax and accounting firms that prepare 36 million+ returns annually under Taxwell (PE-backed by Cinven).

Ownership category

akta.pro rank

Product category

Professional Tax Preparation Software

NAICS

Software Publishers (51321)

akta.pro primary industry

Tax Return Filing, Processing & Assessment (BPAIADAC)

akta.pro secondary industries

Tax Planning & Personal Tax Optimization Tools (FSAGADAJ), Bill Pay, Invoicing & Payables Platforms (BPAMAFAF)

Keywords

• Professional tax software
• Tax preparation software
• Tax practice management
• E-filing solutions
• Accounting workflow tools

Headquarters

HQ city

Franklin

HQ country

United States

HQ region

North America

Offices7 records

Markets served

GTM type

B2B

Offering type

Software

Cost components

Personnel, Technology or R&D, Marketing or Sales, Infrastructure, Operations

Revenue model

1. Tax Software Licensing: Annual licenses for Drake Tax desktop software sold in tiered packages (Drake Tax 1040 150, Drake Tax Pro 250, Unlimited) with per-taxpayer identification number return pricing for lower-volume packages. Pricing varies by return count and includes software updates and support.
2. Drake Tax Online Subscriptions: Cloud-based subscription with first user license plus per-return pricing for individual ($49.99) and business ($74.99) returns, with volume discounts for upfront purchases.
3. Payment Processing: Transaction-based revenue from Drake Pay with 2.85% + $0.25 per credit/debit transaction, $10 per Drake Refund Pay transaction, and 1% + $0.60 ACH fee (minimum $50).
4. Client Portal Subscriptions: Drake Portals subscription at $49.95/month or $349.95/year with 25GB storage, additional storage at $9.95/month per 25GB.
5. Workflow Management: Drake Workflow annual subscription at $299.99 per year with multi-user access, individual and business client tracking, and multi-year tracking.
6. E-Signature Events: Credit-based pricing for e-signature events: Basic E-Signatures from $0.50-$1.25/event, KBA E-Signatures from $1.75-$2.50/event depending on volume, with minimum 5-event purchase.
7. Bundle Subscriptions: Practice Essentials bundle at $599/year and Practice Essentials Plus at $849/year, offering approximately 40% savings versus individual product pricing.

Pricing tiers

Go-to-market motion3 records

Distribution channels5 records

Marketing channels12 records

Core offering

Drake Software develops and sells professional tax preparation software for federal and state individual and business returns, delivered through desktop (Drake Tax) and cloud (Drake Tax Online) platforms, supported by an integrated ecosystem of workflow, client portal, e-signature, payment processing, document management, and accounting modules sold primarily to US tax professionals.

Product overview

Drake Software is a professional tax preparation software provider offering a unified integrated ecosystem centered on its core Drake Tax (desktop) and Drake Tax Online (cloud) platforms. The product portfolio is organized into core tax preparation products, productivity add-on modules, and partner products. Core offerings include Drake Tax for desktop-based tax prep and Drake Tax Online for browser-based cloud access, both supporting 4,300+ tax forms across individual and business returns. Productivity add-ons include Drake Workflow (automation and task tracking), Drake Portals (secure client portals with AI-powered document classification), Drake E-Sign (IRS-compliant e-signatures), Drake Pay and Drake Refund Pay (integrated payment processing), Drake Documents (document management), Drake Accounting (bookkeeping and payroll), and Drake Tax Planner (tax planning scenarios). These integrate seamlessly with each other and with the Practice Essentials bundle, which packages Drake Portals, Workflow, and E-Sign at discounted rates. The ecosystem also includes conversion tools from competitor software, continuing education via Drake CPE, and partner products including hosting (Right Networks), website services (SiteDart), audit protection (Protection Plus), and document services (GruntWorx). All products are supported by award-winning customer service.

Differentiator

Problem solved

Functional benefit

Brands

• Drake CPE: CPE provider recognized in 2023 CPA Practice Advisor Readers' Choice Awards.
• Drake Software SiteDart Website Services
• Drake Tax
• Drake Tax Online
• Drake Portals
• Drake E-Sign
• Drake Pay
• Drake Refund Pay
• Drake Workflow
• Drake Accounting
• Drake Documents
• Drake Tax Planner

Products and services

• Drake Tax Desktop-based professional tax preparation software providing fast calculation results, hundreds of accuracy checks, access to 4,300+ tax forms, advanced review and tax planning tools, and entity return capabilities; the company's flagship product serving solo CPAs/EAs through multi-site tax firms.
• Drake Tax Online Cloud-based, browser-accessible professional tax preparation software powered by the same Drake Tax engine. Offers guided 1040 workflows, multi-user collaboration, real-time sync with desktop, 128-bit encryption, multi-factor authentication, and supports individual (1040, 1040-NR, 1040-SS, 709) and business returns (1065, 1120-S, 1120, 1041, 990, 706).
• Drake Workflow Tax practice automation and task tracking tool connecting all Drake Software products. Provides centralized dashboard for return status visibility, auto status updates, auto task assignment, attention flags, drag-and-drop controls, and payment tracking. Integrates with Drake Tax, Drake Tax Online, Drake Portals, and Drake E-Sign.
• Drake Portals Secure, cloud-based client portal platform for document exchange, e-signatures, and client communication. Features AI-powered automatic document classification, branded firm portals with custom URLs, mobile-friendly uploads, in-app messaging, integrated payments via Drake Pay, and dynamic client checklists.
• Drake E-Sign IRS-compliant electronic signature solution integrated with Drake Portals. Supports Basic E-Signatures for standard documents and KBA (Knowledge-Based Authentication) E-Signatures for IRS e-file authorization forms (8879, 8878). Digital signatures are tamper-evident, bound to each return, and legally binding under ESIGN Act and UETA.
• Drake Pay Payment platform for tax professionals accepting credit/debit cards, ACH, Drake Refund Pay (Pay-by-Refund), and contactless payments. Integrated with Drake Tax, Drake Portals, and Drake Accounting. Funds typically deposited within 2 business days. Powered by Launchpay technology.
• Drake Documents Electronic document management and storage system serving as the communications hub for Drake Tax. Provides customizable cabinets, drawers, and folders; integrates with Drake Portals for client file exchange and offsite backup; password protection and watermarking; administrative file activity tracking.
• Drake Accounting Full-suite professional accounting software for bookkeeping, payroll processing (including 1099/W-2 preparation), financial statements, and client accounting services. Features on-the-fly forms processing, batch payroll processing, multi-location payroll, and graphical drill-down reports.
• Drake Tax Planner Tax planning system enabling accountants to compare clients' current tax situations against multiple scenarios with quick comparison of complex tax scenarios.
• Drake CPE Continuing education platform for tax professionals. Drake is an approved CE provider with NASBA, CTEC, and the IRS, and is an approved IRS Annual Federal Tax Refresher Course (AFTR) provider.
• Bank Products Payment products including Pay-by-Refund and Refund Advances providing flexibility and convenience for tax preparation fee collection from clients.
• Drake Conversions Conversion program enabling new Drake clients to import client data from prior tax software. Supports conversions from TurboTax, Lacerte, ProSeries, UltraTax, TaxAct, TaxWise, ProSystem FX, ATX, Crosslink, and TaxSlayer Pro. Free to clients and prospective clients.
• Practice Essentials Bundle Bundle combining Drake Portals (25GB or 50GB storage), Drake Workflow, and Drake E-Sign credits (Basic and KBA e-signatures) at approximately 40% savings versus a-la-carte pricing. Annual subscription bundle.

Quantifiable outcome

• 6 consecutive years ranked #1 in Federal & State Income Tax Preparation (CPA Practice Advisor)
• +4 more outcomes

Named customers3 records

Segments4 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration18 records

AI capability5 records

Feature7 records

Partnerships

Six partnerships are on record, tiered core and minor.

• Launchpay (Infinicept)coreTechnology or Integration · 25 January 2024Launchpay, a product of Infinicept, is the payment facilitator powering Drake Pay. Their technology is certified to meet PCI Secure Software Standard and provides the payment processing infrastructure for Drake's integrated payment solution.
• Pathward Financial, Inc.coreTechnology or Integration · 25 January 2024Pathward Financial is the partner bank for Drake Refund Pay, enabling the pay-by-refund payment option for tax preparation fees. Enrollment subject to approval and transaction fees apply.
• SalesforceminorGTM or Marketing PartnerSponsor of Hacktivate Greenville hackathon event, indicating marketing partnership for community engagement initiatives.
• SlackminorGTM or Marketing PartnerSponsor of Hacktivate Greenville hackathon event, indicating marketing partnership for community engagement initiatives.
• National Association of Computerized Tax Processors (NACTP)coreStrategic or Co-development PartnerJared Ballew, VP of Government Relations at Drake Software, serves as President of NACTP. The organization works on standardized solutions that help streamline tax filing and reporting processes nationwide.
• IRS Security Summit (Tax Pro Working Group)coreStrategic or Co-development PartnerPublic-private partnership focused on protecting taxpayer data. Jared Ballew co-led the Tax Pro Working Group within the IRS Security Summit, contributing to cybersecurity initiatives and IRS Publication 5708.

Scale indicators8 records

Recent moves8 records

Expansion highlights6 records

Direct peers

• Intuit ProSeries: Intuit's professional tax preparation software for mid-market tax and accounting firms. Directly competes with Drake Tax in the same professional-preparer segment with similar per-return tiered pricing, federal/state coverage, and ProSeries-to-Drake free-conversion support. (Rival product family within Intuit.)
• Intuit Lacerte: Intuit's flagship professional tax software for higher-volume and enterprise tax practices. Comparable core offering to Drake Tax (desktop), with Drake offering free data conversion from Lacerte — direct evidence of head-to-head competition for tax-firm customers.
• Wolters Kluwer CCH ProSystem fx Tax: Wolters Kluwer's enterprise-grade professional tax preparation suite, commonly deployed in mid-to-large accounting firms. Competes with Drake Tax at the higher end of the professional market and is supported by Drake's free conversion program — indicating active displacement competition.
• Wolters Kluwer UltraTax: Mid-market professional tax software from Wolters Kluwer (formerly Creative Solutions). Competes directly with Drake Tax for partnership-track and multi-partner firms; Drake supports free UltraTax-to-Drake conversion as part of its competitive switching program.
• Wolters Kluwer CCH ATX (formerly TaxWise): Wolters Kluwer's entry-level professional tax software originally derived from TaxWise, positioned for small firms and solo preparers. Closely overlaps Drake's lower-volume Drake Tax 1040 150 tier and is a documented free-conversion source for Drake.
• TaxSlayer Pro: TaxSlayer's professional tax preparation product line, serving small and mid-size tax and accounting practices at competitive price points. Competes directly with Drake Tax for cost-sensitive preparers, and is included in Drake's free competitor-conversion program.
• TaxAct Professional: TaxAct's professional (preparer-facing) tax software product. Now a sibling brand under Cinven-owned Taxwell alongside Drake Software; historically a direct competitor to Drake Tax in the professional-preparer market and supported by Drake's free-conversion offering.

Broad incumbents

• Intuit ProConnect Tax Online: Intuit's browser-based, cloud-first professional tax software positioned as the modern counterpart to ProSeries/Lacerte. Closely comparable to Drake's recently launched Drake Tax Online (Sep 2025); represents Intuit's cloud/AI push at the professional-preparer tier.
• Thomson Reuters ONESOURCE: Enterprise corporate tax compliance and provision platform from Thomson Reuters. Adjacent to Drake's professional-preparer footprint — overlaps in the larger-firm end where Drake Tax/Drake Accounting competes — but primarily serves in-house tax departments rather than external preparers.
• Avalara: Cloud tax-compliance automation focused on sales/use tax, VAT, and 1099/W-2 workflows. Functionally adjacent to Drake Accounting (which wins 1099/W-2 awards) and increasingly relevant as Drake extends into embedded compliance via its ecosystem.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat6 records

Key risks6 records

Key highlights5 records

Customer concentration

• Xx.com/drakesoftware
• Facebookfacebook.com/drakesoftware
• LinkedInlinkedin.com/company/drake-software

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles8 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Drake Software