What Is the Cheapest Online Tax Service?

Written By Jeff Hindenach
Last updated January 27, 2021

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February 21, 2016

Simple. Thrifty. Living.

Reader Question: I want to do my taxes online but are TurboTax and H&R Block the cheapest? Is there another service that is cheap and easy to use?

Answer: First of all, yes, there are services that are cheap and easy to use. That being said, TurboTax and H&R Block are the most reliable and knowledgeable online tax services available. They are definitely worth the price you pay for them. TurboTax reviews your taxes with plans starting at $19.99 and going to $74.99, depending on how complicated your taxes are. H&R Block plans range from $16.99 to $42.49.


Also keep in mind that if you have a simple tax return, you can file your federal tax return for free regardless of which online service you use. The only money you will be spending will be on filing your state taxes, which can vary in price depending on what service you use. TurboTax state taxes are $36.99 per state, while H&R Block state plans start at $27.99.

Well, there are services that hit rock bottom when it comes to price, but they often aren’t very reliable or easy to use. If we are looking at the cheapest tax service that you can still feel comfortable doing your taxes with, we would recommend TaxAct. TaxAct only has one package (in addition to the free federal package) for more complex taxes, which is really cheap at $12.99, and gives you a lot of the same features that TurboTax and H&R Block give you, including an easy-to-use website that will walk you through your taxes. The only downside is that TaxAct will charge you to pull your previous year’s tax return.

TaxAct also has a cheaper state package. If you file your federal return for free, TaxAct charges $14.99 per state filing. If you buy the $12.99 federal package, your state filing is only $8, which is a nice benefit of picking TaxAct.

If you want to learn more about TaxAct, check out the website here.

About the Author

Jeff Hindenach

Jeff Hindenach is the co-founder of Simple. Thrifty. Living. He graduated from Bowling Green State University with a Bachelor's Degree in Journalism. He has a long history of financial journalism, with a background writing for newspapers such as the San Jose Mercury News and San Francisco Examiner, as well as writing on personal finance for The Huffington Post, New York Times, Business Insider, CNBC, Newsday and The Street. He believes in giving readers the tools they need to get out of debt.

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