Business tax software handles the preparation and filing of business and self-employment returns — federal and state income tax, entity returns (S-corp, C-corp, partnership), quarterly estimates, and increasingly sales-tax compliance. The category divides between DIY filing tools for small businesses and the self-employed, professional preparer software used by accountants, and dedicated sales-tax automation platforms that calculate and remit tax across jurisdictions. The right choice depends on whether you file yourself or work with a preparer, your entity type, and whether multi-state sales tax is a burden.
This guide compares five of the most widely used business tax solutions in 2026 across pricing, ideal use case and standout strengths, each linking directly to the provider so you can check current terms.
Business tax software compared at a glance
| Platform | Pricing | Best For | Link |
|---|---|---|---|
| TurboTax Business | ~$130–250 + state (DIY) | Polished DIY filing | Visit → |
| H&R Block | Often below TurboTax + state | Value with office network | Visit → |
| TaxAct Business | Lower than TurboTax/Block | Affordable entity returns | Visit → |
| Drake Tax | Per-return / package (quote) | Professional preparers | Visit → |
| Avalara | Scales with volume/jurisdictions | Sales-tax automation | Visit → |
Pricing reflects publicly available information as of June 2026 and changes each tax season; DIY business filing typically runs $120–250 federal plus per-state fees, professional preparer software is quote-based or per-return, and sales-tax automation (Avalara) scales with transaction volume and jurisdictions. Tax software supports but does not replace professional judgment on complex matters. Always confirm current pricing for the relevant tax year.
The best business tax software in 2026, compared
TurboTax Business
Best polished DIY
Best for: Small businesses and self-employed filers wanting the most guided experience.
| Price short | ~$130–250 + state (DIY) |
| Best for short | Polished DIY filing |
| Strength | Most guided, polished UX |
| Coverage | Schedule C + entity product |
| Extras | Expert-assist add-ons |
| Note | Priciest in the category |
- Most polished, guided filing experience
- Strong for Schedule C and entity returns
- Expert-assist and full-service add-ons
H&R Block
Best value + in-person
Best for: Filers wanting solid software with optional in-person support.
| Price short | Often below TurboTax + state |
| Best for short | Value with office network |
| Strength | DIY plus in-person help |
| Network | Nationwide offices |
| Fit | Small business, self-employed |
| Note | UX slightly behind TurboTax |
- Solid DIY software at better value
- National network of in-person offices
- Good hybrid of self-serve and expert help
TaxAct Business
Best affordable entity returns
Best for: Cost-conscious businesses filing S-corp, C-corp or partnership returns.
| Price short | Lower than TurboTax/Block |
| Best for short | Affordable entity returns |
| Strength | Entity returns at low cost |
| Coverage | S-corp, C-corp, partnership |
| Fit | Budget-focused businesses |
| Note | Less hand-holding |
- Affordable entity (S-corp/C-corp/partnership) filing
- Solid accuracy at a lower price
- Good for confident DIY filers
Drake Tax
Best for preparers
Best for: Professional accountants and preparers handling many client returns.
| Price short | Per-return / package (quote) |
| Best for short | Professional preparers |
| Strength | High-volume preparer workflow |
| Fit | Accounting and tax firms |
| Value | Well-priced for pros |
| Note | Not for one-off DIY filers |
- Long-standing professional preparer platform
- Efficient high-volume client-return workflow
- Strong value for accounting and tax firms
Avalara
Best for sales tax
Best for: Businesses whose burden is multi-state or multi-jurisdiction sales tax.
| Price short | Scales with volume/jurisdictions |
| Best for short | Sales-tax automation |
| Strength | Calculate, file, remit sales tax |
| Coverage | Thousands of jurisdictions |
| Extras | Exemption-certificate management |
| Note | Different problem than income tax |
- Automates sales-tax calculation and filing
- Manages exemption certificates and nexus
- Covers thousands of US jurisdictions
How to choose the right business tax software
Match the tool to whether you file yourself, your entity type, and your sales-tax exposure. Small businesses and self-employed people who file their own returns and want the most polished, guided experience get the most from TurboTax — strong for Schedule C and with a dedicated business product for entity returns, though it’s the priciest. Value-focused filers who want solid software with the option of in-person help are well served by H&R Block, which pairs DIY tools with a national network of offices. Cost-conscious businesses filing entity returns (S-corp, C-corp, partnership) affordably should look at TaxAct Business. Professional accountants and preparers handling many client returns need professional software — Drake Tax is a long-standing, well-priced preparer platform. And businesses whose real burden is multi-state sales tax — not income tax — need dedicated sales-tax automation like Avalara, which calculates rates, manages exemption certificates and files returns across thousands of jurisdictions. One essential: tax software handles mechanics well, but anything complex (multi-state nexus, major asset sales, ownership changes) warrants a CPA, since the cost of getting it wrong far exceeds professional fees.
Frequently Asked Questions
What is the best business tax software in 2026?
It depends on how you file. TurboTax Business is the most polished for DIY small-business and self-employed filing, H&R Block is best for value with in-person support, TaxAct Business is best for affordable entity returns, Drake Tax is best for professional preparers, and Avalara is best for sales-tax automation.
How much does business tax software cost?
It varies and changes each tax season. DIY business filing typically runs $120–250 federal plus per-state fees (TurboTax is priciest, TaxAct cheapest), professional preparer software like Drake is quote-based or per-return, and sales-tax automation like Avalara scales with transaction volume and jurisdictions. Confirm pricing for the specific tax year before buying.
What’s the difference between tax filing software and sales-tax automation?
They solve different problems. Filing software (TurboTax, H&R Block, TaxAct) prepares income-tax returns once a year. Sales-tax automation (Avalara) is an ongoing system that calculates and remits sales tax on every transaction across jurisdictions. If multi-state sales tax is your burden, no income-tax filing tool addresses it — you need dedicated automation.
Can I file business taxes myself or do I need a CPA?
Simple returns (single-state, straightforward Schedule C or single-member LLC) are well within reach of DIY software. But anything complex — multi-state nexus, major asset sales, ownership changes, or unusual deductions — warrants a CPA, because the cost of an error (penalties, audits, missed planning) far exceeds professional fees. Many businesses use software for simple years and a CPA for complex ones.
Does tax software guarantee accuracy?
Major DIY products offer accuracy guarantees (covering penalties from software calculation errors), but these don’t cover mistakes in the data you enter or judgment calls on what’s deductible. The software handles mechanics well; it doesn’t replace understanding your tax situation. For complex matters, professional review remains the safeguard against costly errors.
Discover more from Kurums | Business Intelligence
Subscribe to get the latest posts sent to your email.