Small business tax software guides you through preparing and filing returns — Schedule C for sole proprietors and freelancers, or 1120-S, 1065 and 1120 for S-corps, partnerships and corporations — automating calculations and surfacing deductions. Pricing is tiered and the advertised rate climbs quickly once you add the forms, income sources and state returns your business actually needs. The right choice depends on your entity type, how much guidance you want, and whether price or hand-holding matters more.
This guide compares five of the most widely used small business tax tools in 2026 across federal price, ideal use case and standout strengths, each linking directly to the provider so you can check current terms. This is not tax advice.
Small business tax software comparison at a glance
| Software | Federal Price | Best For | Link |
|---|---|---|---|
| TaxAct | ~$105 (Self-Employed); ~$160 (Business) | Online entity returns, value | Visit → |
| TurboTax | ~$129–190 federal (Business) | Guided, expert-backed filing | Visit → |
| H&R Block | ~$115–130 federal | Support & in-person help | Visit → |
| FreeTaxUSA | $0 federal; ~$16 state | Free federal, Schedule C | Visit → |
| Drake Tax | Professional pricing (per firm) | Professional & complex filing | Visit → |
Pricing is tiered and reflects publicly listed federal rates as of June 2026; state returns, entity returns (1120-S, 1065, 1120) and expert add-ons cost extra, and advertised prices rise with complexity. Professional software (Drake) is priced for preparers. Always verify current pricing and your entity’s requirements.
The best small business tax software in 2026, compared
TaxAct
Best overall for businesses
Best for: Small businesses wanting to prepare corporate and partnership returns online at a lower cost than TurboTax.
| Price short | ~$105 (Self-Employed); ~$160 (Business) |
| Best for short | Online entity returns, value |
| Entities | 1040, 1120, 1120-S, 1065 |
| Strength | Transparent pricing, no upsell |
| Guarantee | $100,000 accuracy guarantee |
| Standout | Online filing for business returns |
- One of few tools for online 1120, 1120-S and 1065 returns
- Transparent pricing without aggressive upselling
- Typically ~20% cheaper than TurboTax federal
TurboTax
Best for guided filing
Best for: Business owners who want the most polished, guided experience with expert help on demand.
| Price short | ~$129–190 federal (Business) |
| Best for short | Guided, expert-backed filing |
| Entities | Schedule C, 1120-S, 1065, 1120 |
| Strength | Step-by-step UX, QuickBooks sync |
| Expert | Live expert and full-service options |
| Note | Most expensive; frequent upgrade prompts |
- Most polished, guided step-by-step experience
- Seamless QuickBooks integration (both Intuit)
- Unlimited expert access and full-service options
H&R Block
Best for support options
Best for: Filers who want strong support, AI assistance and the option of in-person help at physical branches.
| Price short | ~$115–130 federal |
| Best for short | Support & in-person help |
| Strength | AI Tax Assist, live chat, branches |
| Free tier | Most robust free tier of paid programs |
| Entities | Schedule C; entity via desktop |
| Note | Fewer cloud features than rivals |
- AI Tax Assist and unlimited live chat on paid plans
- Option to walk into a physical branch for help
- Most robust free tier among the major paid programs
FreeTaxUSA
Best value for freelancers
Best for: Freelancers and self-employed filers wanting free federal filing including Schedule C.
| Price short | $0 federal; ~$16 state |
| Best for short | Free federal, Schedule C |
| Strength | Free federal regardless of complexity |
| Support | Pro Support add-on (~$50–65) |
| Limit | No 1120/1065/1120-S preparation |
| Standout | Best low-cost option |
- Free federal filing including self-employment income
- Low-cost state returns and optional Pro Support
- Best value for Schedule C; no entity-return support
Drake Tax
Best professional-grade
Best for: Accountants, firms and tech-savvy owners with complex, multi-state or high-volume tax needs.
| Price short | Professional pricing (per firm) |
| Best for short | Professional & complex filing |
| Strength | Depth, multi-state, all entities |
| Audience | Built for preparers and firms |
| Coverage | Comprehensive reporting |
| Note | Steeper learning curve |
- Professional-grade depth for complex tax situations
- Strong multi-state and all-entity support
- Built for accountants; steeper learning curve
How to choose the right small business tax software
Start with your entity type, since not every tool handles every return. Sole proprietors and freelancers filing Schedule C have the most options — FreeTaxUSA is the best value (free federal, low-cost state), while TurboTax and H&R Block offer more guidance at a higher price. S-corps, partnerships and corporations filing 1120-S, 1065 or 1120 need software that supports entity returns: TaxAct and TurboTax are the main online DIY options, with TaxAct typically cheaper and TurboTax more polished. If you want maximum hand-holding and expert access, TurboTax leads; if you want clear pricing without upselling, TaxAct is more transparent. For complex situations or professional use, Drake offers unmatched depth but a steeper learning curve. Whatever you choose, remember a CPA may still pay for itself on complex returns — and this software is a tool, not tax advice.
Frequently Asked Questions
What is the best small business tax software in 2026?
It depends on your entity and needs. TaxAct is the best overall for online corporate and partnership returns at a lower cost, TurboTax is best for guided expert-backed filing, H&R Block for support options, FreeTaxUSA for freelancer value, and Drake for professional-grade complex filing.
Which tax software handles S-corp and partnership returns?
TaxAct and TurboTax are the main online DIY options for entity returns like 1120-S (S-corp), 1065 (partnership) and 1120 (C-corp), with TaxAct typically cheaper and TurboTax more polished. FreeTaxUSA handles Schedule C but not entity returns. Drake supports all entities for professional use.
How much does small business tax software cost?
Federal pricing typically runs $0–190: FreeTaxUSA is free for federal (state ~$16), H&R Block ~$115–130, TaxAct ~$105–160, and TurboTax ~$129–190. State returns, entity returns and expert add-ons cost extra, and advertised prices rise as your return gets more complex.
Is free tax software good enough for my business?
For freelancers and sole proprietors filing Schedule C, FreeTaxUSA offers free federal filing that covers most needs, and Cash App Taxes is fully free for qualifying filers. But free tiers usually exclude entity returns (S-corp, partnership) and offer limited support, so businesses with more complex structures generally need paid software.
Should I use tax software or hire a CPA?
Software is cheaper and works well for straightforward returns, but a CPA or Enrolled Agent can pay for itself on complex situations by finding deductions and avoiding costly mistakes. Many businesses use software for simple years and a professional as complexity grows. This guide is software comparison, not tax advice.
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