Best Tax Software Canada
We tested more than a dozen software solutions for your tax returns to pick out 5 absolute winners
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Written by
Charlon Muscat
Edited By
Nathan Navidzadeh
Updated On
November 7, 2024
Reading Time
17 min
Are you having difficulty filing your taxes on your own? You're not the only one!
The good news is that these days there are specialized software solutions to take care of the job for us.
Sometimes, the greatest struggle is choosing among them. In this guide, we took the initiative and pointed out the best tax software in Canada for you.
What Is a Tax Return Software?
Tax return software is a digital tool that tackles the often overwhelming process of filing federal and state taxes. To do this, it walks you through the necessary forms and potential deductions when reporting your income and expenses.
If you’re self-employed or a small business owner, such software makes it more convenient than ever to handle filing and standard deductions without trouble. Plus, many of these also provide direct links to tax experts, offer support in the event of audits, and supply educational content to help you better understand how taxes affect your finances.
Best Tax Filing Software in Canada
Here's a brief run-down of the top 5:
Tax Software | Start Now |
TurboTax | File with TurboTax |
H&R Block | File with H&R Block |
Wealthsimple Tax | File with Wealthsimple Tax |
StudioTax | File with StudioTax |
UFile | File with UFile |
Now, let's dive deeper into each one's key characteristics, advantages, and drawbacks.
1. Best Tax Software: TurboTax
Key Features
Pros
Cons
TurboTax allows you to file taxes at no upfront cost and only pay upon submission across Windows, Mac, Android, and iOS devices. Its Q&A format makes it super easy to navigate the filing process, and you can pause and resume anytime.
The platform asks about your comfort level with handling taxes and offers expert help through TurboTax Live for a fee. If you prefer to file on your own, its interface is as straightforward as it gets to guide you smoothly through the process.
2. H&R Block
Pricing
Pros
Cons
With H&R Block, you can submit your income tax returns directly through NETFILE from any device—be it a Windows or Mac computer or even from your Android or iOS mobile device. It also comes with several extras like Audit Protection and Expert Review.
They’ve really thought about usability, too. The main screen breaks down into five straightforward tabs: get started, quick entry, prepare, wrap-up, and file. You’ll tackle a few questions at each stage to keep things simple, and the status bar on the left side of your screen will show you where you stand with your tax refund or dues.
3. Best Free Tax Software: Wealthsimple Tax (previously SimpleTax)
Pricing
Pros
Cons
Wealthsimple is a relatively fresh face in the tax software market. You can access it through a web interface or download it for Windows or Mac. Plus, it's equipped to deal with complex situations like self-employment, investment income, and cryptocurrency transactions.
It simplifies these processes by automatically importing transaction data, tracking market prices at the time of trades, and reconciling transfers across over 300 crypto wallets and exchanges to help you accurately determine your gains or losses.
The software (except for the Pro plan) also supports Quebec tax filers and is fully translated into French. When it comes to the interface, it's clean and easy to navigate.
4. StudioTax
Pricing:
Pros
Cons
StudioTax has been a go-to option for Canadians for well over a decade. The software is straightforward and ditches fancy extras but provides solid support. The Quick Start Wizard helps you input your information in an orderly manner, and you can also use the mobile app available for both iOS and Android devices. While the interface could stand a refresh, it gets the job done efficiently.
5. UFile
Pricing:
Pros
Cons
UFile has been gaining popularity with Canadians for the past 20 years. It allows you to download your tax slip information from the CRA to help you fill out your returns automatically and includes free carry-forward options.
How to Select the Best Income Tax Software in Canada
When choosing the best income tax software in Canada that fits you, make sure you do your own research and evaluate features like:
- Ease of use - The software must be easy to use so you can easily move through tax forms while saving time and lowering the risk of making mistakes.
- Cost - Pick the software that best fits your budget and has no hidden costs. Especially if your tax situation is straightforward and you only have a few forms to complete, go for the free options. Otherwise, compare pricing options to guarantee you're getting the best value.
- Support – Having dependable customer support when encountering problems is a game changer. Therefore, choose a provider that delivers prompt help through various channels like chat, phone, or email from tax experts.
- Features - The best tax software in Canada can handle different situations, like supporting multiple forms, automatically importing data, optimizing deductions and credits, and providing audit protection.
- NETFILE - Make sure the software is NETFILE approved so you can safely send your tax return directly to the CRA electronically.
- Safety and the use of a VPN - Protect your personal and financial information by choosing software that prioritizes security. Using a VPN while filing your taxes adds an extra layer of encryption, safeguarding your data from potential cyber threats, especially when accessing the software over public or unsecured networks.
Tax Software Buying Guide
If you’re still struggling to find the right tax return software and you don’t know what to look out for, we're here to help. It is clear that every single tax software on the market will allow you to do one thing: file your taxes online.
That being said, some products come with extra features that make filing your taxes as easy as pie.
In the section below, we have listed the key features to look out for when searching for tax return software suitable for your requirements, including auto-importing from the CRA and cost.
NETFILE/CRA Certified
One of the most important things to look out for when searching for an online tax filing service is that your tax return will be prepared using NETFILE certified software by the CRA (Canada Revenue Agency).
If you don't know what this means, NETFILE software essentially allows you to electronically submit your tax returns directly to the CRA from the tax filing website.
If the tax filing software you have chosen is not NETFILE certified, you will have to manually print out all of your tax return forms and mail them to the CRA. Given the current global situation, this is something that should be avoided.
Cost
The second most important thing to look out for when selecting an online tax filing plan is cost. While some of the providers on our list offer a free plan, others require you to fork out anything from $20 to over $100 depending on the plan you choose.
If you can afford to opt for an expensive plan that includes all of the add-ons, then we highly recommend doing so. If you don't fancy spending a penny, there are some fantastic, 100% free tax filing software programs in Canada that we cannot recommend enough.
OS compatibility
It goes without saying that you should only look for tax return software that is compatible with either your computer's operating system or mobile device. If you happen to use Windows, then you shouldn't have any trouble finding compatible software since most programs are available for Windows.
On the contrary, Mac and Android users may have fewer options when looking for tax return software, though it isn’t impossible to find compatible programs.
Language support
If you or someone you know is looking for tax filing software available in a language other than English, you may have a harder time searching. Having said that, in this day and age, it isn't impossible to find modern tax filing programs in Canada available in other languages such as French.
What's more, most websites offer online support, so if you ever need assistance navigating the tax filing program, an expert will be there to help in no time.
FAQ
What's the Top Choice for Tax Software in Canada?
If you're trying to decide on the best tax software in Canada, you've got some solid options: TurboTax, H&R Block, Wealthsimple Tax, StudioTax, and UFile top the list. Think about what you need from your tax software. Are you looking for something budget-friendly, or are the features more important to you? Take your time to weigh your needs against what each software offers.
Is There Any Tax Software That Lets Me File for Free?
Yes, indeed! Wealthsimple Tax suggests a unique "pay-what-you-want" model—if you love the service, you can choose to pay. Otherwise, it's free. StudioTax offers no-cost services to anyone living in the Yukon, Northwest Territories, and Nunavut, or if you're earning less than $20,000 a year. And not to forget, both TurboTax and H&R Block provide free versions for straightforward tax returns.
How Safe Is It to Use Tax Software?
All the best tax filing software in Canada on our list are very safe to use. These platforms use advanced encryption technology to keep your personal and financial info secure while you file your taxes. So, you can rest easy knowing your data is protected.
What Should I Consider When Choosing Tax Software?
When it's time to pick your tax software, start with the basics: Does it have an easy-to-use interface? Is it affordable? How's the customer support? Make sure the software can handle your specific tax needs and that it includes all the forms you'll need. It's also wise to check if it's NETFILE-approved, which ensures it aligns well with the CRA's electronic filing system.
Can I Rely on Tax Software for More Complex Tax Situations?
For those with more involved tax situations—maybe you're self-employed, have various investments, or own rental property—many tax software options like TurboTax, H&R Block, and Wealthsimple Tax are up to the task. They come equipped with features that automatically import your data, maximize your deductions, and make sure you get all the credits you're entitled to, which simplifies the complex process of tax filing.
Can I Use My Phone to File My Taxes?
You bet! All the best income tax software in Canada now come with their own mobile apps. Whether you're on Android or an iPhone, companies like TurboTax and H&R Block have got you covered. Plus, Wealthsimple Tax offers a sleek web interface that works great on mobile browsers.
