Procurement Market Intelligence Report
Tax Preparation Software
Sourcing Guide & Market Intelligence
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Tax Preparation Software Global Overview
Definition
Summary
This report is intended to assist buyers of tax preparation software. Tax preparation software allows businesses to complete and file their own taxes electronically. Suppliers are software publishers and include companies ranging from large multinational firms to small specialist developers. Demand comes from a wide range of buyers in the economy, including manufacturing, finance, and retail sectors as well as professional service providers.
This Report Includes:
- Tax Preparation Software
- Tax E-Filing Applications for Computers
- Tax E-Filing Applications for Mobile Devices
Not in this Report:
- Traditional Tax Preparation Services
- Accounting & Bookkeeping Software
- Payroll & Billing Software
- Financial Analysis Software
Global Tax Preparation Software Procurement Trends
Discover the top international trends affecting procurement in the global Tax Preparation Software market.
Warning Trends
The European Union’s Artificial Intelligence (AI) Act enters into force
- In August 2024, the European Union (EU) began enforcing its new regulation on artificial intelligence. Although EU legislation, the act will have a major effect on global technological companies operating in the AI space, similar to the General Data Protection regulation.
- The legislation aims to apply a risk-based framework to AI regulation, meaning different AI applications will be treated differently. The law applies a general ban for “unacceptable” uses, such as social scoring and predictive policing.
- For general-purpose AI models, companies will be required to comply with EU copyright law and intellectual property provisions, carry out regular testing, issue transparency disclosures, and implement adequate cybersecurity protections. For “high-risk” AI applications, such as autonomous vehicles, medical devices, financial services, and biometric identification systems, companies must meet stricter requirements in terms of risk-mitigation systems, documentation, human oversight, and cybersecurity.
- Companies that breach the AI Act may face fines ranging from 7.5 million euros or 1.5% of global annual revenues to 35.0 million euros or 7.0% of global annual revenues, whichever amount is higher.
- While the blanket ban on unacceptable systems entered into force in February 2025, most of the obligations do not take effect for a full year. In August 2025, requirements for general-purpose AI will come into effect, and in August 2026, obligations for high-risk AI systems will be enforced.
Positive Trends
The DOJ proposes Google breakup in latest tech antitrust action
- In August, Google was found guilty of operating as a monopoly and engaging in anti-competitive practices through the operation of its search engine business.
- In response to this ruling the Department of Justice (DOJ) has stated it will seek a breakup of Google’s business segments, among other similarly harsh penalties. While the actual penalty Google receives must be approved by the judge, the DOJ’s proposed penalties signal a zero-tolerance policy toward tech monopolies.
- During the last few years, the Federal government has significantly increased its enforcement actions against major technology companies in an effort to contest the high level of market share concentration in this sector.
- These actions include high-profile anti-trust lawsuits against Amazon, Apple, and Meta, in addition to the case against Google. Consequently, the results of these lawsuits could significantly affect the structure of a wide range of tech markets.
Global Tax Preparation Software Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 Europe | 65 |
| #2 United States | 50 |
| #3 China | 35 |
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2
Geography Drilldown - US
Average Cost of Tax Preparation Software
United States
2026 Market Pricing$0.00 to $X,XXX.XX
per returnAverage Price
Prices in the Tax Preparation Software market range from $0.00 to $X,XXX.XX, depending on Functionality, Number of Returns and Use-Case. For example, lower prices are associated with 1040 & W2 filing, whereas higher prices are associated with Deduction, investments, & more.
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Tax Preparation Software Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Tax Preparation Software market, prices in the US have grown 1.7% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
United States (2025-2028)
Compound Annual Growth Rate
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Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Tax Preparation Software
Total cost of ownership is Low in the Tax Preparation Software market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Downtime may raise the total cost of ownership unexpectedly.
Negotiated Before
Customization
Billed During
Upgrades
Unforeseen
Downtime
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -0.1 in the United States. Buyer power is most positively impacted by Market Share Concentration. It is most negatively impacted by Price Driver Volatility. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Low, which has a positive impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Computer Manufacturers
- Operating Systems & Productivity Software Publishers
- Data Processing & Hosting Service Providers
2nd
Tier Suppliers
- Semiconductor & Circuit Manufacturers
- Computer Peripheral Manufacturers
- IT Consultants
Biggest Tax Preparation Software Suppliers in the US by Revenue
The largest Tax Preparation Software vendors by revenue in the US are TaxSlayer, LLC, Intuit Inc. and CBIZ Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Intuit Inc. | Global | Mountain View | >10,000 | 25+ | ||||
| H&R Block, Inc. | Global | Kansas City | 1,001-10,000 | 5-10 | ||||
| Jackson Hewitt Inc. | National | Jersey City, NJ | >10,000 | < 5 | ||||
| Thomson Reuters Corporation | Global | TORONTO | >10,000 | < 5 | ||||
| Wolters Kluwer N.V. | Global | Alphen aan den Rijn, NL | >10,001 | < 5 | ||||
| CBIZ Inc. | National | INDEPENDENCE, OH | 1,001-10,000 | < 5 | ||||
| Blucora, Inc. | Global | DALLAS, TX | 501-1,000 | < 5 | ||||
| Vertex, Inc. | Global | King of Prussia, PA | 1,001-10,000 | < 5 | ||||
| TaxSlayer, LLC | International | Augusta, GA | 101-250 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Tax Preparation Software market is 17.2% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Overhead. The cost trend for this component is rising, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Average vendor risk for suppliers of tax preparation software is low due to strong demand trends and high profit levels. Thus, there is little risk associated with procuring from top vendors in the market.
Supply chain risk in this market is low. Suppliers have easy access to readily available inputs throughout the supply chain, thus minimizing the chances of shortages and disruptions that would cause the price of tax preparation to rise and hurt buyers.
The United States is a net importer of computers, meaning it imports more computers than it exports. While lower manufacturing costs abroad drive down prices for imported computers, relying on imports can lead to potential shortages or price increases if there are supply chain disruptions due to geopolitical tensions, trade disputes, or global crises
Market share concentration is high for tax preparation software companies, thereby lowering the competitive environment in the market. Intuit is estimated to have over 25.0% of the entire market share alone.
Supplier Information
Intuit Inc.
Intuit Inc. is a software company that develops platforms delivering financial management, compliance, and marketing products and services. It organizes its business into four reportable segments: the Small Business & Self-Employed segment, which offers accounting services through QuickBooks and marketing... Subscribe to learn more
H&R Block, Inc.
H&R Block, Inc. is a holding company that provides global tax preparation services, financial products, and small business solutions. It offers assisted and do-it-yourself (DIY) tax return preparation solutions through in-person, mobile applications, virtual, and desktop software; small business financial... Subscribe to learn more
Blucora, Inc.
Blucora, Inc. is a public company operating globally in the information sector. The company's offerings include tax preparation software. Founded in 1996, the company is currently headquartered in DALLAS, Texas, United States of America with an estimated 727 employees. Subscribe to learn more
CBIZ Inc.
CBIZ Inc. is a public company operating nationally in the information, real estate and rental and leasing and professional, scientific and technical services sectors. The company's offerings include tax preparation software, business valuation services, real estate appraisal services, tax accounting services... Subscribe to learn more
Drake Software LLC
Drake Software LLC is a private company operating nationally in the information sector. The company's offerings include tax preparation software. Founded in 1977, the company is currently headquartered in Franklin, North Carolina, United States of America with an estimated 750 employees. Subscribe to learn more
Jackson Hewitt Inc.
Jackson Hewitt Inc. is a private company operating nationally in the information and professional, scientific & technical services sectors. The company's offerings include tax preparation software and tax accounting services. Founded in 1982, the company is currently headquartered in Jersey City, New Jersey,... Subscribe to learn more
TaxSlayer, LLC
TaxSlayer, LLC is a private company operating internationally in the information sector. The company's offerings include tax preparation software. Founded in 1965, the company is currently headquartered in Augusta, Georgia, United States of America with an estimated 175 employees. Subscribe to learn more
Thomson Reuters Corporation
Thomson Reuters Corporation is a public company operating globally in the information and professional, scientific and technical services sectors. The company's offerings include financial analysis software, tax preparation software, online compliance training, legal management software, aca compliance software.... Subscribe to learn more
Vertex, Inc.
Vertex, Inc. is a private company operating globally in the information sector. The company's offerings include tax preparation software. Founded in 1978, the company is currently headquartered in King of Prussia, Pennsylvania, United States of America with an estimated 5500 employees. Subscribe to learn more
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Procurement Management KPIs for the Tax Preparation Software Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Resolution Time and Customer Retention Rate. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Customer Support and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Average Resolution Time |
|
Average tax filing time in days Response time to questions |
While it is important to prepare tax filings far before due dates, a vendors average resolution time is an important indicator to monitor. Vendors that respond to support requests quickly will be beneficial when there are last minute changes or circumstances for a buyer. |
| Customer Retention Rate |
|
Yearly customer retention rate Number of customer win-backs |
Customer retention rate gives a clear picture on the reliability of a vendor. Considering that buyers must pay taxes every year until they no longer exist or operate, a vendor that has a low retention rate is losing customers to better products A vendor that is able to win back customers previously lost shows growth in their product and service. |
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Features
How many products or services do you have in your development pipeline?
Can your software be used by businesses of all sizes, or is it primarily used by small companies?
Business Continuity
How do you anticipate the forecast increase in the number of US businesses to affect demand? Will this affect how you distribute any hard copies of your tax preparation software?
How do you market your software offerings to new businesses? Do you market your solutions selectively?
Customer Support
Do clients have dedicated technical support representatives, or do clients have to call a general support line?
Do you offer any training programs with installed software? How much time does it take to learn new programs on average?
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Tax Preparation Software RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should describe their organization and operations.
Buyers should provide details on the size of their organization and the number of expected tax returns.
Statement Of Need
Buyers should include the number of tax returns needed.
Buyers should detail the software features they require (e.g. e-filing, processing notifications, preparation and review) and whether the system must meet any compatibility requirements with existing IT infrastructure.
Project Budget
Buyers should specify the expected number of returns.
Buyers should detail the contract term for annual ongoing costs (e.g. system support, upgrade and maintenance charges and license fees).
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We display average pricing information, trends and market data.
Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
