Best Tax Software for Small Businesses in 2022

Business.org reviews the year’s best tax software so you can find the right tax software for your small business’s needs and budget.
Best overall
Turbo Tax
TurboTax
4.5 out of 5 stars
4.5
Federal filing starting from
$119.00
  • pro
    Most reliable guarantees
  • pro
    Most perks and features
Best budget option
Free Tax USA
FreeTaxUSA
4 out of 5 stars
4.0
Federal filing starting from
$0.00
  • pro
    Free federal filing
  • pro
    State filing only $14.99 per state
Best for small business
Efile
eFile.com
4 out of 5 stars
4.0
Federal filing starting from
$39.00
  • pro
    Approachable, personable website
  • pro
    Inexpensive, up-front pricing
Best for beginners
Liberty Tax
Liberty Tax
4 out of 5 stars
4.0
Federal filing starting from
$45.95
  • pro
    Tax education courses
  • pro
    Both online and on-site filing
Best for complex businesses
H&R Block
H&R Block
4 out of 5 stars
4.0
Federal filing starting from
$84.99
  • pro
    Free audit representation
  • pro
    Integration with Xero accounting software

Data as of 10/04/22. Offers and availability may vary by location and are subject to change.

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Are you hoping to tackle 2022 taxes like a champ? Small-business tax software can minimize tax season stress while maximizing your tax return. Our top tax software for small businesses is TurboTax, Intuit's popular tax-filing software, but it's not the only option. Check out Business.org’s picks for the year’s best tax software options below.

Compare the best small-business tax software

Brand name
Business.org rating
Federal filing starting cost
State filing starting cost
File Now
4.5 out of 5 stars
4.5

$119.00

$49.00 per state

4 out of 5 stars
4.0

Free

$14.99 per state

4 out of 5 stars
4.0

$39.00

$32.00 (unlimited state filings)

4 out of 5 stars
4.0

$45.95

$34.95 per state

4 out of 5 stars
4.0

$84.99

$36.99 per state
4 out of 5 stars
4.0
$64.95$44.95 per state

Data as of 10/04/22. Offers and availability may vary by location and are subject to change.

TurboTax: Best overall business tax software

Intuit TurboTax
Turbo Tax
TurboTax
4 out of 5 stars
4.0
Starts at
$119.00 + $49.00 per state
  • pro
    Tax deduction assistance
  • pro
    Straightforward interface
  • pro
    Maximum refund guarantee

Data as of 10/04/22. Offers and availability may vary by location and are subject to change.

TurboTax is one of the most popular tax software options for a reason (well, several). For starters, the software walks you through every step of the tax-filing process, asking clear questions and pointing you toward often overlooked tax deductions. The clean interface speeds up tax filing, and TurboTax’s maximum refund guarantee gives you some extra peace of mind.

That said, the features and reliability definitely come with a cost—especially if you wait until the end of the tax season to file, when TurboTax’s prices tend to jump. Currently, TurboTax Self Employed starts at $119 for federal taxes and $49 per state. If you’re a member of a partnership, S Corp, or C Corp, you’ll want TurboTax Business, which starts at $170 for federal plus $55 per state.

FreeTaxUSA: Best budget option

FreeTaxUSA
Free Tax USA
FreeTaxUSA
4 out of 5 stars
4.0
Starts at
$0.00 + $14.99 per state
  • pro
    Free federal filing
  • pro
    Email-based customer support
  • pro
    Deduction assistance

Data as of 10/04/22. Offers and availability may vary by location and are subject to change.

FreeTaxUSA’s appeal is obvious from its name alone: with FreeTaxUSA, you can file your federal taxes for free, and a state return costs just $14.99. The Deluxe upgrade adds a few features, like amended returns and priority support, for $6.99.

And the additional features you get for exactly zero dollars aren’t half bad either. For instance, the software lets you integrate previous tax return information, offers email-based customer support, and accounts for over 350 credits and deductions. But since the software is free, you’re still looking at fewer benefits than you’d get with Liberty Tax or H&R Block. As a result, FreeTaxUSA works best for freelancers and sole proprietors.

eFile.com: Best for multi-state businesses

eFile.com
Efile
eFile.com
4 out of 5 stars
4.0
Starts at
$35.00 + $28.00 for unlimited state filing
  • pro
    Single charge for multi-state filing
  • pro
    Low starting price

Data as of 10/04/22. Offers and availability may vary by location and are subject to change.

Sure, eFile.com’s low federal filing starting price is a perk—but where the software really soars is in state tax filings. Unlike big-name competitors like H&R Block and TurboTax, eFile.com charges one flat price for unlimited state tax filings.

So how affordable are we talking? Small-business owners should buy the Premium edition, which normally costs $45.99 for federal filings. Unlimited state returns cost $21. With eFile.com, you can’t file a Form 1120 for corporations from the site. If your business is registered as a C corporation, you’ll need a different tax software provider. But smaller businesses score a solid value with eFile.

Liberty Tax: Best for beginners

Liberty Tax
Liberty Tax
Liberty Tax
Starts at
$44.95 + $34.95 per state
  • pro
    Online or onsite tax preparation
  • pro
    Tax education courses
  • pro
    Low starting price

Data as of 10/04/22. Offers and availability may vary by location and are subject to change.

Seen Lady Liberty twirling a sign on a sidewalk recently? That’s Liberty Tax. Like H&R Block, Liberty Tax combines brick-and-mortar storefronts with online offerings—a great perk for new business owners who might want face-to-face help untangling tricky tax situations. Plus, Liberty Tax’s Tax Education School offers online and classroom tax courses. If you’re a brand-new business owner, these courses can help you gain tax know-how to save time and money the next time tax season rolls around.

If you’re self-employed, you’ll need Liberty Tax’s Premium plan, which starts at $44.95 for federal tax filing plus $34.95 per state.

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H&R Block: Best for complex businesses

H&R Block
H&R Block
H&R Block
4 out of 5 stars
4.0
Starts at
$84.95 + $36.99 per state
  • pro
    Optional support from live professionals
  • pro
    Onsite filing locations
  • pro
    In-person audit representation

Data as of 10/04/22. Offers and availability may vary by location and are subject to change.

H&R Block is a popular company with plenty of experience—it’s been around for over 60 years. And while it doesn’t offer the cheapest software, it’s a tad cheaper than TurboTax with all the same guarantees. H&R Block also has hundreds of locations all over the country. If you decide halfway through filing taxes that they’re too complicated to tackle on your own, you can always call your local branch and decide on next steps with a certified accountant.

H&R Block’s additional features include the following:

  • Quick, easy integration of past tax return info (even if it’s from a competitor’s software)
  • Free in-person audit representation if needed
  • Live chat help with a tax professional (available at an additional cost)

H&R Block starts out a little cheaper than TurboTax: its software for self-employed business owners costs $84.95 for federal filing plus $36.99 per state filing

Honorable mention: TaxAct

TaxAct
Tax Act
TaxAct
Starts at
$64.95 + $44.95 per state
  • pro
    Affordable state filing
  • pro
    Accounting software integration
  • pro
    Previous tax data integration

Data as of 10/04/22. Offers and availability may vary by location and are subject to change.

TaxAct is the Toyota Corolla of tax software: affordable, straightforward, and well-rounded. You can expect all standard features—plus a few bonuses—with the TaxAct software, including integration with previous tax data, one-on-one help from tax experts (over the phone), and accounting software integration.

As a solid middle-of-the-road option, TaxAct gives business owners options like accountant support without overwhelming you with the bells and whistles of more comprehensive (and more expensive) software. TaxAct helps you file a single federal return for $64.95. State tax returns cost an additional $44.95. Even larger businesses, like a C corporation or S corporation, pay the same cost.

The takeaway

We doubt most business owners would refer to tax season as a breeze. But with the right tax software, tax-filing season becomes less stressful for sole proprietors, employers, and freelancers alike. Instead of stressing about tax filing, let your software take the front seat while you spend more time doing what you love: focusing on your business.

Want a little more info on filing small-business taxes before you dive into software? Check out our guide to filing taxes as a small business for even more tips.

Related content

The Best (and Worst) States for Small-Business Tax Deals

Thanks to the government’s recent tax-filing extension, the tax deadline isn’t quite around the corner—but it’ll still arrive sooner rather than later. Whether you have or haven’t filed yet, we hope you’re in for a substantial return. But since tax laws vary drastically from state to state, the place you choose to set up shop can influence your business’s growth, success, and sustainability.

How? Well, for starters, seven of our top states lack a state income tax, and one, Tennessee, has just a 1% rate. Some, like Washington, are famous for their startup culture and tech friendliness; it’s practically a given that their tax laws would incentivize small-business owners. Other winners, like South Dakota and Montana, are rural states where the cost of living is low—and so is the cost of starting a business, which makes the area enticing to small-business owners, individuals, and families alike.

In contrast, our lowest-ranked states have notoriously high taxes and high costs of living, especially California and New York. The lack of tax deals might make them less appealing to business owners who are trying to make money, pay their employees, send in the rent check on time, and, you know, eat the occasional meal or two.

Your taxation situation

Of course, while location is crucial to your tax prospects, it isn’t the be-all and end-all of tax deals—or of business success. State business taxes often break down by industry, so you’ll want to do more research before planning your immediate move from Minnesota to Wyoming. Still, if tax deals are important to your business, give our top picks an extra look; a good tax bargain can nudge your business in the right direction.

Top 10

Rank
State
State Individual Income Tax Rate
Combined State and Federal Corporate Tax Rate
Combined State and Local Sales Tax Rate
Median Property Tax Rate
Score

1

Wyoming

0.00%

21.00%

5.30%

0.60%

84.11

2

South Dakota

0.00%

21.00%

6.40%

1.30%

73.7

3

Washington

0.00%

21.00%

9.20%

0.90%

72.02

4

Alaska

0.00%

28.40%

1.80%

1.00%

68.84

5

Florida

0.00%

24.60%

7.10%

1.00%

67.49

6

Nevada

0.00%

25.70%

8.30%

0.80%

63.76

7

Texas

0.00%

21.00%

8.20%

1.80%

63.75

8

Delaware

6.60%

27.90%

0.00%

0.40%

60.99

9

Montana

6.90%

26.30%

0.00%

0.80%

59.18

10

Tennessee

1.00%

26.10%

9.50%

0.70%

59.14

Bottom 10

Rank
State
State Individual Income Tax Rate
Combined State and Federal Corporate Tax Rate
Combined State and Local Sales Tax Rate
Median Property Tax Rate
Score

51

New Jersey

10.80%

29.30%

6.60%

1.90%

14.29

50

California

13.30%

28.00%

8.70%

0.70%

18.81

49

Minnesota

9.90%

28.70%

7.50%

1.10%

26.43

48

Iowa

8.50%

29.50%

6.90%

1.30%

26.8

47

Vermont

8.80%

27.70%

6.20%

1.60%

28.37

46

Illinois

5.00%

28.50%

9.10%

1.70%

30.28

45

New York

8.80%

26.10%

8.50%

1.20%

31.31

44

Nebraska

6.80%

27.20%

6.90%

1.80%

31.82

43

Wisconsin

7.70%

27.20%

5.50%

1.80%

32.47

42

Connecticut

7.00%

26.90%

6.40%

1.60%

34.81

Methodology

To determine the best and worst states for business tax deals, we looked at four tax rates in each state:

  • State income tax rate (weighted 40%)2
  • Combined state and federal corporate tax rate (weighted 20%)3
  • Combined state and local sales tax rate (weighted 20%)4
  • Property tax rate (weighted 20%)5

We weighted each rate and assigned the states’ scores based on how high or low their tax rates were. Specifically, we normalized each measurement on a 0–1 scale with 1 as the measurement that would most positively affect the final score and 0 as the measurement that would most negatively affect the final score. These adjusted measurements were then added together with the weights mentioned above to get a score of out of 100.

Sources
1. eFile.com, “Income Tax Return, eFile Statistics,” June 1, 2020. Accessed October 4, 2022.
2. Katherine Loughead and Emma Wei, Tax Foundation, “State Individual Income Tax Rates and Brackets for 2019,” March 20, 2019. Accessed October 4, 2022.
3. Garrett Watson, Tax Foundation, “Combined State and Federal Corporate Income Tax Rates in 2020,” January 31, 2020. Accessed October 4, 2022.
4. Janelle Cammenga, Tax Foundation, “State and Local Sales Tax Rates, Midyear 2021,” February 3, 2022. Accessed October 4, 2022.
5. World Population Review, “Property Taxes by State 2022.” Accessed October 4, 2022.

Tax software FAQ

If I’m self-employed, do I file individual taxes and business taxes separately?

No. If you’re self-employed, a sole proprietor, or a freelancer, you cannot file your business and individual taxes separately. Instead, you’ll file your business’s tax returns alongside your personal tax return. That’s what a Schedule C Form is for—this form attaches to your personal tax return (Form 1040) and details your business’s profits and losses for the tax year.

What forms do I need to file business taxes?

Different business entities each use different tax forms—we’ll give you a quick rundown.

Sole proprietors

If you’re self-employed and your small business isn’t registered as a legal entity, you should fill out a Form 1040, which is your personal tax return. As part of your 1040, you’ll also need to complete the Schedule C portion, which allows you to report the income and expenses from your sole proprietorship. These same forms will also work if you registered your business as an LLC with you as the sole member.

Partnerships, LLCs, and S Corporations

Every member of a partnership, LLC, or S Corporation needs to fill out Form 1065 and a Schedule K-1. Each of these business organizations pass through business income to the owners or shareholders, so the members will need to account for those earnings under Schedule E in their personal income taxes.

C Corporations

Unlike the organizations above, C Corporations do not pass through income to the business owners. These businesses file their corporate taxes using Form 1120. If you’re a business owner, you should get a Form 1099 to inform you of the income you made from the business for your personal return.

Other considerations

Different situations require extra forms, like a Form 720 for excise taxes (necessary if you sell items like tobacco, alcohol, or gasoline) or Form 941 for taxes withheld from paychecks.

Do I file taxes annually or quarterly?

If you’re a self-employed business owner or freelancer, the federal government requires you to file taxes quarterly if you expect to owe more than $1,000 in federal taxes. And if you pay employees, then you’ll also need to file Form 941 quarterly. (This form is for reporting and remitting payroll taxes to the IRS.) Finally, if you sell tobacco, alcohol, gasoline, or other products that require an excise tax, you’ll file Form 720 quarterly as well.

Methodology

Given the immense liability involved in sending cash every year (or quarter) to Uncle Sam, we carefully analyzed each tax platform's data privacy practices, accuracy guarantees (if any), ease-of-use, ability to handle complex tax situations, value for the money, and other nuanced features.

Kylie McQuarrie
Written by
Kylie McQuarrie
Kylie McQuarrie has been writing for and about small businesses since 2014. Prior to writing full-time, she worked with a variety of small-business owners (from freelance writers to real-estate solopreneurs), which gave her a front-row look at small-business owners' struggles, frustrations, and successes. Currently, she’s Business.org’s accounting and payroll staff writer. Her work has been featured on SCORE.org, G2, and Fairygodboss, among others.
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