Consumer Staples
Best Tax Software for Small Businesses in 2025: Top Picks to Maximize Savings and Ease Filing
Tax season can be daunting for small business owners balancing their operations with complex tax filings. The right tax software not only simplifies the filing process but also helps unlock valuable deductions and credits, saving you both time and money. For 2025, several tax software providers stand out for their ease of use, affordability, expert support, and tailored features for small businesses, freelancers, and startups.
This comprehensive guide explores the best tax software for small businesses in 2025, highlighting features, pricing, and which solutions fit your business type. Whether you're a sole proprietor, freelancer, LLC owner, or run a multi-member partnership, these tools give you the tax support you need without the headache or high costs of professional preparers.
Why Small Businesses Need Specialized Tax Software
Small businesses face multiple tax obligations including income tax, self-employment tax, payroll tax, and sometimes sales tax. Navigating these while maximizing deductions—such as business expenses, vehicle mileage, home office deductions, and health savings accounts—can be tricky. Tax software designed specifically for small business owners helps by:
- Automating complex calculations and compliance with IRS updates
- Providing access to expert help and audit support
- Offering seamless import of financial data from banks, payroll providers, and accounting software
- Helping identify industry-specific tax deductions and credits
- Minimizing costly mistakes that could trigger audits or penalties
Using specialized tax software improves accuracy, saves time, and often costs less than hiring a tax professional.
Top-Rated Tax Software for Small Businesses in 2025
TurboTax: Best Overall Tax Software for Small Businesses
Pricing:
- Premium (Sole proprietors, partnerships): $79 federal + $39/state
- Live Assisted Business (Partnerships, S-corps, multi-member LLCs): $489 federal + $64/state
Why It’s Ideal:
TurboTax remains the #1 best-selling tax software for small businesses, especially for self-employed individuals and gig economy workers. Its intuitive interface allows easy import of documents from Uber, Lyft, Square, QuickBooks, and more. TurboTax offers unlimited access to live tax experts 7 days a week and a final tax return review, providing peace of mind for complex filings. Business owners can also create and file W-2s and 1099s for employees directly through the platform.
Key Features:
- Expert tax help and audit support included
- Industry-specific deductions for small business owners and freelancers
- Seamless document upload and import
- Unlimited year-round tax advice at no extra cost
H&R Block: Best Affordable Tax Software for Startups and Growing Businesses
Pricing:
- Self-Employed Online: $85 federal + $37/state
- Tax Pro Review: $180 federal + $37/state
- Block Advisors (Full service with tax professional): Starting at $210 federal + $75/state
Why It’s Ideal:
H&R Block is perfect for startups and small businesses looking for a balance between affordability and expert support. It provides free live expert and AI assistance with a modern, easy-to-navigate interface. Plus, users appreciate the company's transparency with pricing and the ability to save progress and return later.
Key Features:
- Unlimited chat with tax pros included in paid packages
- Handles personal and business taxes in one place
- Supports business expense reporting and itemized deductions
- Professional in-person or virtual help available nationwide
TaxSlayer: Best for Freelancers and Sole Proprietors on a Budget
Pricing:
- Free federal filing + affordable state fees
- Self-Employed plan around $50 - $75
Why It’s Ideal:
TaxSlayer caters well to freelancers and sole proprietors needing cost-effective tax solutions. It offers IRS audit assistance and includes features for estimating quarterly taxes, mileage tracking, and expense categorization—key for independent contractors.
Key Features:
- Straightforward, budget-friendly pricing
- IRS audit assistance available
- Easy-to-use interface with helpful instructions
- Supports Schedule C and self-employment tax forms
TaxAct: Affordable and Competitive Option for Small Businesses
Pricing:
- Deluxe: ~$55 federal + $49/state
- Premier: ~$95 federal + $49/state
- Self-Employed: ~$110 federal + $49/state
Why It’s Ideal:
TaxAct is a solid choice for small business owners who want comprehensive features at a lower price point. Although it lacks free state filing, its paid packages cater to homeowners, investors, and self-employed people. They also offer tax pro help via paid Xpert Assist.
Key Features:
- Inexpensive paid tiers for complex filings
- Audit assistance and detailed deduction reporting
- Easy import tools and guided assistance
- Offers Schedule C and F for business income reporting
How to Choose the Right Tax Software for Your Small Business
When selecting tax software, consider these factors:
- Business structure: Sole proprietors may use simpler software, while partnerships and corporations often need advanced features.
- Tax complexity: Do you have rental income, investments, or multiple states? Choose software that supports all necessary forms and schedules.
- Expert support: Access to real-time help can be crucial, especially if this is your first time filing business taxes.
- Budget: Weigh software prices against the potential savings from maximizing deductions and avoiding penalties.
- User experience: Look for a clean interface with step-by-step guidance and easy import options.
Benefits of Using Tax Software for Small Businesses
- Save Time: Automated calculations and document imports reduce manual work.
- Maximize Deductions: Software identifies eligible expenses and credits you may miss otherwise.
- Reduce Errors: Built-in error checks help avoid costly mistakes.
- Ensure Compliance: Up-to-date tax laws and regulations keep your filings accurate.
- Access Expert Help: Many platforms include or offer affordable professional support.
Summary Table: Best Tax Software for Small Businesses in 2025
| Software | Pricing Range | Best For | Expert Support | Key Features | |----------------|-------------------------|-----------------------------------|-------------------------|---------------------------------------| | TurboTax | $79 - $489 + state fees | Sole proprietors, partnerships | Live tax pros 7 days/wk | Imports, audit support, W-2/1099 creation | | H&R Block | $0 - $210 + state fees | Startups, growing businesses | Free live help included | Business & personal filing, easy UI | | TaxSlayer | Free - $75 + state fees | Freelancers, sole proprietors | IRS audit assistance | Budget-friendly, Schedule C support | | TaxAct | $55 - $110 + state fees | Cost-conscious small businesses | Paid pro help available | Affordable, detailed deduction tools |
Final Thoughts
Choosing the best tax software for your small business hinges on your specific business type, tax complexity, and budget. TurboTax leads for overall features and expert support, especially for self-employed and gig workers. H&R Block offers affordable, user-friendly options with solid professional backing—great for startups. For freelancers and sole proprietors on a budget, TaxSlayer and TaxAct provide reliable, cost-effective alternatives.
Using the right tax software lets you file confidently, maximize deductions, and focus more on growing your business than wrestling with tax paperwork. Start by assessing your needs, then select the software that gives you the best balance of ease, savings, and expert support for 2025.
Current as of April 2025; pricing and features subject to change. Always verify details on official provider websites.
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