The cost of filing taxes depends on whether you use software, a paid preparer, or file for free

Tax filing costs range from $0 to several hundred dollars, depending on your situation and how you choose to file. If your income is below a certain threshold, you can file for free through the IRS Free File program. If you use commercial tax software, costs typically run $60 to $150 for a basic return. A tax professional (CPA or tax preparer) usually charges $150 to $500 or more, depending on how complex your return is and where you live.

The IRS does not charge you to file taxes. The cost comes from third-party software companies, tax preparers, or the time you spend doing it yourself. Understanding your options before you start means you can avoid paying for something you don't need.

Key Takeaways

  • The IRS Free File program is available to households earning under $79,000 (2024), and you pay nothing to file federal taxes through approved software partners.
  • Commercial tax software ranges from free basic versions to $60–$150 for returns with deductions, capital gains, or self-employment income.
  • Tax preparers and CPAs typically charge $150–$500 per return, with higher fees for complex situations like business income or multiple rental properties.
  • State tax filing often costs extra — either through software add-ons ($20–$50) or as part of a preparer's fee.
  • You can file by hand with paper forms and mail them to the IRS at no cost, though this takes longer and increases error risk.

Free filing through the IRS Free File program

The IRS Free File program partners with tax software companies to offer free federal tax filing to households earning $79,000 or less in 2024 (the income limit changes yearly). You access it through the IRS website at irs.gov/freefile, which lists all participating companies. Each partner offers a free version of their software for simple returns — usually W-2 income, standard deduction, and basic credits.

Free File covers federal taxes only. State taxes are not included, though most software partners offer state filing as an add-on for $20–$50. You must meet the income limit in the year you are filing; if you earned $79,001 or more, you do not may have access to, even if you earned less in previous years.

The Free File program is real and run by the IRS itself. Do not confuse it with free trial offers from commercial software — those usually convert to paid subscriptions after 30 days. Go directly to irs.gov/freefile to find the official list.

Commercial tax software costs and what you get

Tax software companies like TurboTax, H&R Block, and TaxAct charge based on how complex your return is. A basic version for W-2 income and the standard deduction costs $0–$60. A version that includes itemized deductions, capital gains, or education credits runs $60–$120. Self-employment income, rental property, or investment income typically requires their highest tier at $120–$150 or more.

These prices are for federal filing only. Adding state tax filing usually costs $20–$50 per state. Some companies bundle federal and state together at a single price; others charge separately. Read the price breakdown before you start entering information, because the cost can jump once you indicate you have self-employment or rental income.

Many software companies offer a free version that covers only the simplest returns — usually just W-2 income and standard deduction. If you have any deductions, credits, or other income, the free version will not work, and you will be prompted to upgrade to a paid tier.

Tax preparer and CPA fees

A tax preparer or CPA charges based on the time and complexity of your return. A straightforward return with W-2 income and standard deduction typically costs $150–$250. A return with itemized deductions, rental income, or business income runs $300–$500. Very complex situations — multiple businesses, significant investment income, or prior-year issues — can cost $500–$1,500 or more.

Some preparers charge a flat fee for a specific type of return. Others charge hourly rates, which range from $150–$400 per hour depending on the preparer's experience and location. Ask for a quote before you hand over documents; most preparers will give you an estimate based on what you describe.

Tax preparers are not all the same. The IRS recognizes three types: Enrolled Agents (EA), CPAs, and tax attorneys. All three can represent you before the IRS if you are audited. A tax preparer without one of these credentials can prepare your return but cannot represent you. Check the preparer's credentials and ask whether they carry errors and omissions insurance, which protects you if they make a mistake.

State tax filing costs

Most states have income tax, and filing state taxes costs extra. If you use tax software, state filing is usually an add-on for $20–$50 per state. If you use a tax preparer, state filing is often included in their fee, but ask first — some preparers charge separately for each state return.

A few states have no income tax: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming. If you live in one of these states and have no income from other states, you do not need to file a state return. If you lived in multiple states during the year or worked in a state where you do not live, you may owe taxes to more than one state, and costs will increase accordingly.

Filing by hand with paper forms

You can download tax forms from irs.gov, fill them out by hand, and mail them to the IRS at no cost. This is the cheapest option but also the slowest and most error-prone. Processing a paper return takes 4–6 weeks or longer, compared to 1–3 weeks for an electronically filed return. If you make a mistake on a paper return, the IRS will contact you, and you will have to file an amended return, which adds more time and complexity.

Paper filing makes sense only if you have a very simple return and no access to a computer. For most people, the time cost of hand-filling forms and the risk of errors outweigh the money saved.

Factors that affect what you pay

Your income level determines whether you can use Free File. Your income sources — W-2 wages, self-employment, rental property, investments — determine which software tier or preparer you need. Your filing status (single, married, head of household) and whether you have dependents affect complexity. If you own a business, have rental property, or received a large inheritance, costs go up significantly.

Where you live also matters. Tax preparers in high-cost cities charge more than those in rural areas. If you lived in multiple states or worked across state lines, you may owe taxes to more than one state, which increases filing costs. Prior-year issues — unfiled returns, amended returns, or IRS notices — also drive up preparer fees because they require more work.

Frequently Asked Questions

Can I file for free if I earned just over the Free File income limit?

No. The Free File program has a hard income cutoff. If you earned $79,001 or more in 2024, you do not meet the threshold, even by $1. You would need to use commercial software or a tax preparer. Some software companies offer discounts for people just above the limit, so check their websites.

Do I have to pay if I file taxes and owe money to the IRS?

No. Filing costs and tax owed are separate. You can file for free through Free File or paper forms regardless of whether you owe taxes. The IRS does not charge a filing fee. You pay only the tax amount you owe, which you can pay in full or set up a payment plan for.

What if I used a tax preparer and they made a mistake?

Ask the preparer to file an amended return at no extra cost — most will do this as part of their service. If the mistake cost you money, ask whether they carry errors and omissions insurance. If they do not fix it or refuse to help, you can file an amended return yourself using software or a different preparer.

Is it cheaper to file myself or use a preparer?

For a simple return, filing yourself through Free File or basic software costs $0–$60 and takes a few hours. A preparer costs $150–$250 and takes one meeting. If your return is complex or you are unsure about deductions, a preparer's fee often pays for itself by finding deductions you missed or avoiding costly errors.

Do I have to pay to amend a return I already filed?

If you filed through software, amending usually costs the same as the original filing or less. If you used a preparer, ask first — some charge a reduced fee for amendments, others charge full price. You can file an amended return by hand for free, though it takes longer.