TaxACT

What TaxACT does

TaxAct is a US tax preparation software company founded in 1998 in Cedar Rapids, Iowa and now headquartered in Dallas, Texas (3200 Olympus Blvd, Suite 150). It is a privately held subsidiary of Taxwell (DS Admiral Bidco, LLC d/b/a Taxwell), which also owns Drake Software and 1040.com. The company operates a multi-segment platform serving individual consumers with tiered DIY filing products (Free, Deluxe starting $59.99, Premier starting $99.99, Self-Employed starting $109.99 plus state fees), small businesses with fully online C-Corp, S-Corp, partnership, and sole-proprietor filing — a positioning explicitly described as unique among major providers — and tax professionals (CPAs and Enrolled Agents) through TaxAct Professional software. The platform has processed over 113 million returns since 2000, carries a 4.4-star rating across 32,930+ reviews, and supports both English and Spanish users.

The core technology stack is an online tax preparation engine augmented by AI features: SmartFile AI, an in-product conversational tax assistant, and the Claude Connector, a Model Context Protocol integration with Anthropic's Claude that exposes eight tax-focused capabilities including filing-option comparisons, refund estimates, document requirements, deadline checks, and live-expert routing. Mobile apps on iOS and Android provide Snap-a-Pic document capture. The platform supports mainstream and complex tax forms (1040, 1120-S, 1065, K-1, Schedule C) and is an IRS Authorized e-File Provider. Auxiliary products include Audit Defense (provided by Tax Protection Plus), tax calculators, prior-year filing, and IRS Form 4868 extensions. Distribution is digital-first via taxact.com and app stores, supplemented by a digital marketing mix across paid search, social platforms (LinkedIn, Pinterest, Reddit, Snap, YouTube, Yelp), and a Refer-a-Friend program.

The business model combines freemium and tiered per-return pricing for consumer DIY with add-on expert services (Xpert Assist at $45 for unlimited expert sessions; Xpert Full Service for full-service preparation), subscription pricing for TaxAct Professional, transaction-fee revenue from Refund Advance loans originated through Republic Bank & Trust Company, and unit-priced state filings (typically $39.99). Reported differentiators include a 21-28% price advantage versus TurboTax federal pricing, the industry's highest $100,000 Accuracy Guarantee covering software errors plus penalties, interest, and legal/audit costs, and an integrated AI feature roadmap. The company employs 51-100 people and competes with Intuit's TurboTax, H&R Block, FreeTaxUSA, and others in the US DIY and assisted tax preparation market.

Name

TaxACT

Legal name

TaxAct, LLC

Website

https://taxact.com

Company type

Private

Founded year

1998

Operating status

Operating

Headcount range

51–100 employees

Short description

TaxAct develops online tax preparation software for US individual consumers, small businesses, and tax professionals. A subsidiary of Taxwell, it offers tiered DIY products, expert-assisted services, AI features, and the industry's highest $100,000 accuracy guarantee.

Ownership category

akta.pro rank

Product category

Tax Preparation Software

NAICS

Tax Preparation Services (541213), Accounting, Tax Preparation, Bookkeeping, and Payroll Services (5412), Software Publishers (513210), Other Accounting Services (541219)

SIC

Services-Computer Programming Services (7371), Services-Computer Processing & Data Preparation (7374)

akta.pro primary industry

Tax Advisory & Compliance (BPAHABAB)

akta.pro secondary industries

Tax Planning & Personal Tax Optimization Tools (FSAGADAJ), Revenue Systems, E-Filing & Digital Tax Administration (BPAIADAO)

Keywords

• Tax preparation software
• Online tax filing
• Consumer tax solutions
• Small business tax software
• Professional tax tools

Headquarters

HQ city

Dallas

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B and B2C

Offering type

Software

Cost components

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

Revenue model

1. Consumer Tax Software Subscriptions: TaxAct generates primary revenue from tiered consumer tax filing software products. Users can start free and pay tiered prices for increased functionality. Tiered pricing: Free Edition ($0 for eligible filers), Deluxe ($59.99+), Premier ($99.99+), Self-Employed ($109.99+). Additional fees apply for state filing and add-on services.
2. Add-on Expert Services: Xpert Assist provides unlimited sessions with credentialed tax experts for $45.00-$60.00 add-on fee. Xpert Full Service offers full outsourced tax preparation handled by experts on a per-return fee basis.
3. Professional Tax Software: TaxAct Professional software designed for CPAs, Enrolled Agents, and tax preparers who prepare returns for clients. Provides professional tax preparation tools and e-filing capabilities.
4. Business Tax Filing Products: Online tax filing solutions for C-Corps, S-Corps, partnerships, and sole proprietors. TaxAct is the only major tax software provider offering fully online filing for C-Corps, S-Corps, and partnerships. Revenue from business entity tax preparation products.
5. Refund Advance Loans: In partnership with Republic Bank & Trust Company, TaxAct offers Refund Advance loan products providing eligible filers early access to funds against their expected tax refund.

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels7 records

Core offering

TaxACT develops and sells online tax preparation software for individual consumers, small businesses, and tax professionals. Its core products include tiered consumer filing software (Free, Deluxe, Premier, Self-Employed), business entity tax returns for C-Corps, S-Corps, partnerships and sole proprietors, and professional software for CPAs and Enrolled Agents. The company also offers AI-assisted features (SmartFile AI, Claude Connector), expert add-on services (Xpert Assist, Xpert Full Service), mobile apps, audit defense, and Refund Advance loans.

Product overview

TaxACT offers a multi-tiered online tax preparation platform with consumer products ranging from free to $109.99 for self-employed filers, plus professional and business tax filing solutions. The product portfolio includes TaxAct Online (Free, Deluxe, Premier, Self-Employed tiers), TaxAct Business Returns (C-Corps, S-Corps, Partnerships), and TaxAct Professional for tax preparers. AI-powered features include SmartFile AI (in-product assistant) and the Claude Connector for Anthropic integration. Expert assistance is available through Xpert Assist (unlimited expert Q&A) and Xpert Full Service (full-service professional filing with Spanish support). Additional services include mobile app, Audit Defense, Refund Advance loans, tax calculators, and deduction optimization tools. The company also offers downloadable desktop software and prior-year filing capabilities.

Differentiator

Problem solved

Functional benefit

Products and services

• TaxAct Online Online tax preparation software offering multiple tiers (Free, Deluxe, Premier, Self-Employed) with step-by-step guidance for individual federal and state tax filing. Provides DIY filing with tools to maximize refunds, with optional expert help add-ons.
• TaxAct Online Free Edition Free federal filing tier for eligible standard returns covering W-2 income, unemployment, retirement income, Earned Income Tax Credit, Child Tax Credit, dependents, and current students. Approximately 40% of TaxAct filers qualify based on income and deductions.
• TaxAct Online Deluxe Tier for more complex taxes including home ownership, child and dependent care, and Health Savings Account (HSA) deductions. Starting at $59.99 plus state additional.
• TaxAct Online Premier Investment-focused tier covering stocks, cryptocurrency, home sales, and rental income. Includes all Deluxe features plus tools for selling stocks or crypto, selling a home, and rental income. Starting at $99.99 plus state additional.
• TaxAct Online Self-Employed Tax preparation for business owners, freelancers, side hustlers, and gig workers. Covers contract, freelance, rideshare work, and sole proprietorship. Starting at $109.99 plus state additional.
• Xpert Assist Add-on service providing unlimited live access to credentialed tax experts for guidance at any step during tax return preparation. Available for $45 for unlimited sessions with U.S.-based tax professionals.
• Xpert Full Service Full-service filing option where 100% U.S.-based, credentialed tax experts handle the complete tax return from documents to filing. Includes Spanish-language support for 2026 tax season.
• TaxAct Business Returns Online business tax filing for C-Corporations, S-Corporations, Partnerships, Sole Proprietors, and Tax-Exempt Organizations. TaxACT is the only major tax software provider offering fully online filing for C-Corps, S-Corps, and partnerships.
• TaxAct Professional Tax preparation software designed for tax professionals including CPAs, Enrolled Agents, and tax preparers. Features tax preparation tools, e-filing options, and comprehensive support for completing accurate client returns.
• TaxAct Mobile App Mobile application for iOS and Android enabling tax filing on the go. Features include Snap a Pic document capture, progress tracking, and expert help access.
• Audit Defense Add-on protection service providing support in case of IRS audit, including a representative to handle communications with the IRS. Provided by Tax Protection Plus.
• Refund Advance Loan product in partnership with Republic Bank & Trust Company providing eligible filers early access to funds from their expected tax refund.
• TaxACT Download Software Downloadable desktop tax preparation software for consumers with 30-day money-back guarantee. Alternative to online filing for users preferring desktop software.
• Prior Year Taxes Service for filing prior year tax returns for users who need to file amendments or catch up on past filings.
• Filing Extension Service for filing IRS Form 4868 to request an automatic tax extension, pushing the filing deadline from April 15 to October 15 while still requiring estimated tax payments by April 15.
• Claude Connector AI integration tool built on the Model Context Protocol that enables Anthropic's Claude AI assistant users to access TaxACT's tax knowledge base directly within conversations, providing eight tax-focused capabilities including filing option comparisons, refund estimations, and document requirements guidance.
• SmartFile AI In-product AI tax assistant enabling users to ask questions, understand what to do next, and navigate through their tax return with confidence. Part of TaxACT's broader AI strategy launched in 2026.

Quantifiable outcome

• TaxAct pricing is 21-28% less than TurboTax for equivalent federal filing tiers
• +3 more outcomes

Segments6 records

Ideal customer profiles4 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration2 records

AI capability7 records

Feature6 records

Partnerships

Five partnerships are on record, tiered flagship, core, supporting and minor.

• Anthropic (Claude AI)flagshipTechnology or Integration · 21 July 2026Anthropic's Claude AI assistant integrates with TaxAct's tax knowledge base through the Claude Connector, built on the Model Context Protocol. This integration provides Claude users access to TaxAct's current-year tax guidance, filing option comparisons, refund estimations, document requirements, and live expert connections within AI conversations.
• Apple (iOS App Store)coreChannel Partner/ Reseller/ DistributorTaxAct mobile application distributed through Apple App Store for iOS devices. App enables tax filing on iPhones and iPads with full feature access including Spanish language support.
• Google (Google Play Store)coreChannel Partner/ Reseller/ DistributorTaxAct mobile application distributed through Google Play Store for Android devices. App enables tax filing on Android mobile devices with full feature access including Spanish language support.
• LexisNexissupportingTechnology or IntegrationLexisNexis provides identity verification services for TaxAct's account recovery services. TaxAct discloses personal information including name, address, email, IP address, and Social Security Number to LexisNexis to verify customer identity.
• Drake SoftwareminorOthersDrake Software is listed as an affiliate company of TaxAct (under Taxwell parent). Drake Software provides tax preparation software and is referenced in TaxAct's privacy notice as an affiliated company that may receive personal information.

Scale indicators5 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• FreeTaxUSA: FreeTaxUSA is a low-cost online tax preparation service competing directly on price with TaxAct's Free Edition and Deluxe tiers, appealing to the same cost-sensitive U.S. individual filer segment with simplified federal/state pricing.
• eFile.com: eFile.com is an IRS-authorized online tax preparation service providing free and paid individual filing tiers — a direct peer in the U.S. DIY market targeting cost-conscious filers with a comparable free-funnel product.
• H&R Block: H&R Block provides both DIY online tax software and assisted/in-person tax preparation across the U.S., competing head-to-head with TaxAct in the consumer DIY segment while also overlapping in professional products via its Block Advisors small business offering.
• Liberty Tax: Liberty Tax (parent: Loyalty Ventures/SNI) operates online DIY tax software and an assisted retail office network. It is a direct U.S. competitor to TaxAct across both consumer and assisted-filing categories.
• TurboTax (Intuit): Intuit's TurboTax is the dominant U.S. consumer and small business tax preparation software, offering individual, self-employed, and business filing tiers — directly comparable to TaxAct's online product lineup. Both compete on tiered pricing, free eligibility, accuracy guarantees, and now AI assistants.
• Jackson Hewitt: Jackson Hewitt provides both DIY online tax software and a large assisted retail tax preparation footprint, competing with TaxAct for U.S. individual and small business filers — particularly the price-sensitive segment served through retail partnerships.
• 1040.com: 1040.com is a U.S. tax preparation website offering free and paid federal filing tiers for individual returns. As another Taxwell-affiliated brand, it is both a corporate peer and a direct product competitor within the same U.S. consumer segment as TaxAct.
• TaxSlayer: TaxSlayer offers tiered online tax software (Classic, Premium, Self-Employed, Military) targeting individual U.S. filers with competitive pricing — a direct mid-market peer to TaxAct with overlapping segments and similar DIY product structure.
• Drake Software: Drake Software is a Taxwell sister company offering professional tax preparation software for accountants and tax preparers. It is a peer by product category (U.S. tax software) and a corporate affiliate within the same parent (Taxwell/DS Admiral Bidco).

Emerging players

• Credit Karma Tax (Intuit): Credit Karma Tax was acquired by Intuit and is being integrated with TurboTax. It pioneered a 100% free U.S. federal and state DIY filing offering, directly competitive with TaxAct's free tier and broader freemium funnel.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/TaxAct
• Facebookfacebook.com/56510866520
• LinkedInlinkedin.com/company/taxact

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Funding overview

Funding rounds1 record

Investors1 record

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

M&A1 record

Investments

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

Frequently asked questions about TaxACT