The best tax software in Canada helps you maximize your refund, and many even allow you to file your taxes online for free.
A whopping 92.3% of Canadians who filed tax returns in 2023 did so using electronic filing methods.
Of these, 32.5% used tax software approved by the CRA for NETFILE, 59.6% used an EFILE service, and 0.2% of filers used File My Return.
Filing your income tax and benefit return using tax software is easy, and you get back refunds faster. Compared to traditional paper filing, your tax refund could be processed in as little as 2 weeks instead of 8 weeks or longer.
No wonder paper returns declined significantly from almost 5.4 million in 2015 to just 2.5 million returns in the 2022 tax year.
As you prepare for the 2023 tax year season that opens in February, below are some of the best tax preparation software and programs you can use for your filing.
Best Tax Return Software in Canada
Tax software in Canada that has been approved by the Canada Revenue Agency to transmit data using NETFILE generally offers the following benefits:
- Auto-fill my return
- 100% accuracy and maximum tax refund
- Express Notice of Assessment (NOA)
- Up to 20 returns per account
They also offer various features and benefits that may vary depending on whether you use a free or paid version of the tax program.
TurboTax: Best Paid Tax Software in Canada
Turbotax is the most popular tax software in Canada. It is CRA-approved to use the NETFILE service and also supports Auto-fill my Return.
TurboTax is available on multiple devices, including Android and iPhone devices. It also offers a downloadable desktop program.
It breaks down the tax forms into small manageable bits and offers guidance along the way, so you don’t miss out on over 400 tax deductions and credits and can maximize your tax refund.
This tax software offers multiple products that cater to simple and complex tax situations, including investment income, self-employment income, and personal and business taxes.
If you’d rather have an expert complete your tax return or want someone to review it before submission, you can use the TurboTax Live service.
Cost: Has a free version (TurboTax Free). The standard paid product is $20.99, and premium options are available, with prices ranging from $34.99 to $99.99, depending on your needs. A 15% discount is available using the link below.
Is it safe? TurboTax uses TLS encryption to protect your data.
Available: In all Canadian provinces and territories.
Pros of TurboTax
- It is CRA-approved for NETFILE
- Offers a free version for simple tax returns
- Paid versions can handle simple and complex returns, including investment, rental and business income
- Access to live support
- Audit protection is available
Cons of TurboTax
- Support is limited for the free version
- Premium versions are more expensive
For more details about this tax preparation program, read our TurboTax review.
WealthsimpleTax: Best Free Tax Software in Canada
Wealthimple Tax (formerly SimpleTax) is a free tax return software that uses a pay-what-you-can model.
Designed by Canadians, this platform was recently acquired by Wealthsimple, a popular online financial institution. You can use Wealthsimple Tax in your web browser or download the mobile app.
It supports simple and complex returns, including self-employment income, investment income, and rental income. A refund optimizer helps you to utilize all the deductions and tax credits applicable to your situation, so you get the maximum refund possible.
If you have questions about your tax filing, you can get help by email or phone 7 days a week, including weekends and holidays.
For the 2023 tax year, Wealthsimple Tax also supports tax filing for crypto trades. If you bought or sold crypto, you can automatically import your trades from over multiple crypto exchanges.
The software calculates your capital gains and losses and includes them in your tax return filing.
Cost: Wealthsimple Tax is free. A donation is requested when submitting your return to CRA.
Security: It uses encryption to secure your data. You can also enable 2-factor authentication to provide further protection.
Available in: All provinces and territories in Canada.
Pros of WealthsimpleTax
- Free tax software for Canadians
- It supports simple and complicated tax situations
- User-friendly interface
- Audit support is available for a fee
- CRA-approved for NETFILE
- Supports capital gains/losses from crypto and stock trades
- Maximum refund guarantee
- Offer several free calculators
Cons of WealthsimpleTax
- No support for corporation tax filing
- A downloadable Windows version is not available
- Does not support the AgriStability and AgriInvest programs for farmers
Want to know more about WealthsimpleTax? Read our review.
H&R Block: Best For In-Person Tax Filing
H&R Block has been around on the tax filing scene since 1964. It offers online tax software and tax services at more than 1,000 retail offices across Canada.
The online version has three tiers of service depending on the level of assistance you want: Free ($0), Deluxe ($19.99), Premier ($34.99), and self-employed ($44.99).
You can also opt for add-on services, including an expert review (starts at $59.99), audit protection, and a last will and testament.
Cost: There’s a free online tax filing version, and you can also choose from various paid products depending on your needs.
Available: In all provinces and territories in Canada.
Security: It uses several layers of security and policies to protect your data.
Pros of H&R Block
- CRA-certified to use NETFILE
- Offers support via chat and telephone
- Premium options, including expert help and audit protection, are available
- In-person tax service is available (drop off at an office)
Cons of H&R Block
- Support is limited for the free version
- Premium options are more expensive
- It does not support Form T1273, Form T1163, and Form T2203
Here’s a detailed H&R Block guide.
GenuTax: Pay What You Want Free Tax Filing
This tax software is free to use. It works on Windows computers, and you need to download and install the program to get started.
Like the other tax software on this list, you can use GenuTax to file for the 2022 tax year and previous years.
It works for simple and complex taxes and can handle capital gains, rental property income, and small business taxes.
GenuTax does not support Form T2203 and Form T1135. Also, you won’t be able to use it if you participate in the AgriStability or AgriInvest programs or when filing a pre-or post-bankruptcy claim.
For assistance or questions about your filing, you can send an email to [email protected].
Cost: Free. You can make a donation of your choice using PayPal or a credit card.
Security: Your tax information is stored on your local hard drive.
Available: Throughout Canada with restrictions in Quebec.
Pros of GenuTax
- It is certified by the CRA to use NETFILE
- Free tax preparation software
- Simple and user-friendly
Cons of GenuTax
- The limited support available via email can take up to two business days
- You can’t use it to file your Quebec provincial income tax return (federal filing available)
- Only available on the Windows operating system; no mobile or iOS versions
- It is missing a few forms
CloudTax
This Canadian-made tax software is newer, and you can access it using your computer or smartphone.
CloudTax offers free online tax software for simple tax returns. A standard version costs $29.99/return if you have business, foreign or rental income; and there’s a Plus version that supports Corporation T2 returns.
You can also have your taxes filed by an expert for an extra $29.99.
Available in: CloudTax Free is not available in Nunavut, Quebec, Yukon, or the Northwest Territories.
Security: Your data is encrypted and only shared with the CRA using NETFILE.
Pros of CloudTax
- It is CRA-approved
- Review and file options available from $49.99 to $149.99
- Audit protection is available as an add-on for $2.99 per month
- Free version available for simple tax returns
- User-friendly and intuitive platform
Cons of CloudTax
- The free version offers limited support and is not available throughout Canada
Related: CloudTax review.
UFile
UFile has been serving Canadians for over 20 years.
It offers an online web-based version, a desktop installation file for Windows, and a free tax software version for eligible filers.
UFile is easy to use, and the step-by-step format is easy to follow, even for first-time users.
The free UFile version is available to students, newcomers to Canada who are filing their first federal return, and taxpayers with a total family income of less than $20,000.
The software supports self-employment, investment, and rental property income.
Cost: UFile has a basic free option. UFile ONLINE starts at $20.95, and UFile Premium starts at $32.95.
Security: It uses 128-bit encryption to protect your data
Available: Throughout Canada
Pros of UFile
- CRA and NETFILE approved
- Access to email and telephone support
- Has a version for corporation T2 filing
- Has a basic free version for eligible individuals
Cons of UFile
- The free version is not open to everyone
- It does not support Form T1273 and bankruptcy returns
- Audit assistance is not provided
Related: uFile review.
StudioTax
StudioTax is another online tax filing program available to Canadians.
To use the software, you will need to download the .exe file and install it on your Windows or Mac computer. You can also download the mobile app from the App Store and Google Play.
While the interface for StudioTax looks dated, it is well-rated by users. Note that it does not support some tax forms, including Form T1273 Statement A, Form T2203, TP-22, and TP-25.
You can access YouTube tutorials and the support section of the website if you have questions about your tax filing.
Cost: It has a $15 license fee. If your total income is less than $20,000 or you live in Nunavut, Yukon, or the Northwest Territories, you won’t need a license.
Security: The software does not connect to the internet except when you update it.
Available in: All provinces and territories in Canada. The Mac version does not support the Quebec TP-1 return.
Pros of StudioTax
- It is CRA-approved for NETFILE
- Offers an Enterprise version (paid) for tax professionals
- A free option is available if your income is less than $20,000
Cons of StudioTax
- No direct support is available
- It does not have a web-based version
- It is lacking tax forms for non-resident returns and multiple jurisdiction taxes
- Audit assistance is not provided
Methodology:
Savvy New Canadians ranks the best Canadian tax software based on the cost, ease of use, type of return supported, access to professional help, security, availability, and if it is NETFILE approved. Based on our research, these are the best tax software in Canada. Visit the company’s website using the links to confirm each product’s terms and conditions before signing up.
TurboTax vs. SimpleTax vs. StudioTax vs. UFile
| Wealthsimple Tax | TurboTax | StudioTax | UFile | |
|---|---|---|---|---|
| Price | Free; donation requested | Free option; standard version costs $20.99+ | $15 | Free option; standard version costs $19.95 |
| CRA-approved and NETFILE ready | Yes | Yes | Yes | Yes |
| Supports CRA’s auto-fill | Yes | Yes | Yes | Yes |
| Support available | Email, phone, chat | Phone, email, chat | Youtube Tutorials | Email and phone |
| Audit assistance | Yes, for a fee | Yes, for a fee | No | No |
| Mobile app | iOS and Android | iOS and Android | iOS and Android | No |
| Guarantee offered | Maximum refund and 100% accuracy | Maximum refund and 100% accuracy | N/A | Best refund and accuracy |
| Availability | Canada-wide | Canada-wide | Canada-wide; Mac version limited in Quebec | Canada-wide |
| Optional add-ons | Audit and priority email support | Tax expert filing; review; corporation returns; desktop app | Desktop app | Premium version available |
| Learn more | – | Learn more (15% discount) | – | – |
Pros and Cons of Filing Your Taxes Online in Canada
When you file your taxes online using tax software approved by the CRA (e.g. TurboTax), you can automatically and accurately complete some sections of your return using the Auto-fill my Return tool.
The software program provides guidance on what to do and how to maximize your refund. It also does all the calculations.
After completing your return and filing it, you get quick access to your notice of assessment, and if you are set up for a direct deposit, your refund is generally processed within 2 weeks.
Individuals with a complex tax situation or corporation tax returns may benefit from using an accountant vs. online tax software.
A CPA is more familiar with tax planning and tax laws, and they may be able to save you money over time.
You can also get professional advice by choosing tax software that offers expert assistance and reviews.
Other Free Tax Filing Options in Canada
In addition to free tax software, some tax filers can file their taxes with the CRA for free.
File My Return: If you are eligible for this service, the CRA will send you an invitation letter containing information on how to proceed.
Free Tax Clinics: These free tax services are offered through the Community Volunteer Income Tax Program. They are available to low and moderate-income Canadians who have simple tax returns.
You can find a free tax clinic in your area here.
Income Assistance-Volunteer Program: This free program is available in Quebec and is offered to Canadians with simple tax situations and a modest family income.
What Is Tax Filing Software?
Tax filing software assists you in preparing and filing your income tax return. It walks you through the entire process, telling you how to do everything in a step-by-step guide. Often, if you link your CRA MyAcccount and upload your T4 and other documents, the software will auto-fill most of your tax return, which you will then need to review.
Typically, the tax filing process will start with a questionnaire where you provide personal data and answer a few questions. You enter details from your T4 slips and other forms, and the software prepares everything for you.
Once you’ve filled everything in and looked it over, you can file your completed taxes to the CRA’s online NETFILE system. Doing so means getting your tax return faster, especially if you choose direct deposit.
The main purpose of tax filing software is to automate the process so that you don’t have to file your taxes manually. It also automatically calculates how much tax you owe or how much you will be getting back as a refund.
How To Choose The Best Tax Software
With many different tax return software available, it can be difficult to choose which is best for you. When deciding which one to use, consider the following:
How easy it is to use. Many Canadians aren’t professionals when it comes to filing their taxes. If you’re one of them, you’ll want to choose software that is easy to use and walks you through the entire process. The program should guide you in choosing the right tax forms without consulting an expert.
Your tax situation. Whether you’re employed full-time, part-time, are self-employed, or have done gig economy jobs throughout the year, the tax software should have you covered. For example, TurboTax offers Free, Deluxe, and Premier tax filing options for those with simple tax returns, self-employed individuals, investors, and more. If you need expert help, they’ve also got you covered.
Cost. Depending on the ease of your tax return, some tax software comes with a price. If you have a simple tax return or prefer not to pay for the service, choose a tax software that won’t charge you. However, keep in mind that free software will have limitations.
NETFILE approved. If you’re sending your tax return to the CRA directly online, ensure the tax software is NETFILE approved so you won’t run into any problems.
Tax Software vs Tax Preparation Service
Tax return software is great and helps you prepare your taxes with their automated software. However, it may not involve any humans or professional help if you run into problems.
A tax preparation service, or tax preparer, is someone who prepares, calculates, and files income tax returns on your behalf or the behalf of a business. They understand tax laws and can easily review your information and file taxes for you.
If you have a complicated tax situation, like owning a business or being self-employed with many different contracts, it may be wise to seek the help of a tax preparation service.
Best Tax Software in Canada FAQ
The best free tax software, based on my review of the various tax programs, is Wealthsimple Tax (formerly SimpleTax). If you are looking for extensive live help, audit protection, and reviews, TurboTax is an excellent paid option to consider.
Yes, the TurboTax Canada free tax software is free. That said, it is limited in what you can use it for, as it doesn’t support some deductions, income, and expenses.
SimpleTax is now owned by Wealthsimple, and it has been rebranded as Wealthsimple Tax.
Wealthsimple Tax and TurboTax are two of the best tax software to file your taxes. They take you through the process step-by-step and review your return for any errors.
Yes, Wealthsimple Tax is certified and approved by the CRA and Revenu Quebec for NETFILE tax filing.
You can file up to 20 returns per account with TurboTax Free and Wealthsimple Tax.
Various tax software are approved by the CRA for filing 2023 tax returns, including TurboTax, Wealthsimple Tax, StudioTax, GenuTax, CloudTax, TaxTron, and H&R Block Online.
H&R Block has been around for years and offers in-person tax filing, which TurboTax does not. However, H&R Block online does not support Form T1273, Form T1163, and Form T2203 and support is limited for the free version. We would recommend TurboTax, as it has more options and better support for online tax filing.
TurboTax can be pricey, but it is high quality and offers access to tax experts. It is especially useful for those who are self-employed.
Tax Updates For the 2024 Tax Season
For the 2024 Tax Year, you should take note of the following tax numbers:
Federal Income Tax Rates
- Up to $55,867: 15%
- $55,868 to $111,733: 20.50%
- $111,734 to $173,205: 26%
- $173,206 to $246,752: 29%
- $246,753 and over: 33%
For Provincial tax rates and brackets, visit the applicable links below:
- Saskatchewan Income Tax Rates
- B.C. Income Tax Rates
- Alberta Income Tax Rates
- Ontario Income Tax Rates
- Manitoba Income Tax Rates
Tax-Free Saving Account
The TFSA Contribution limit for 2024 is $7,000, increasing by $500 from the level it was in 2023.
Here are some TFSA investment options.
Basic Personal Amount
The basic personal amount in 2024 is $15,705 (compared to $15,000 in 2023). Individuals earning a taxable income higher than $173,205 will gradually phase out the basic personal amount until it reaches $14,156.
RRSP Limit
The RRSP limit in 2024 is $31,560, increasing from the $30,780 dollar limit in 2023.
Canada Child Benefit
The base CCB amount for children under 6 has increased to $7,437 (from $6,997 in the 2022-2023 payment cycle), and for kids aged 6 to 17, it has increased to $6,275 (from $5,903 in the 2022-2023 payment cycle).
For a longer list of taxes and benefits that have changed, click here.
TurboTax fee structure is skewed to gouge pensioners. If you have a T5 you must upgrade. Move to your T3 slips and you must upgrade again. At this point, not willing to continue. . A user ought to be able to enter T sheet information for any and all T sheets without being asked for more money, which has been the case for the 15 or more years that I have used this software. Never again…
It was unclear whether some of the free software was online only or also available to run on your computer.
Turbo Tax Free for example appears to be online only.
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Hello – does Wealthsimple tax automatically import your previous year’s tax return into your current file? I read that the standard paid version of TurboTax does this and might be the key differentiator between the two software packages.
@CanuckEng: If you have used SimpleTax in the past, you can import previous tax returns. As for other tax software, I don’t think there is direct integration.
Really good breakdown, there is a wealth of information on this website, thank you for giving your time to help educate Canadians about retirement and personal finance.
@Barett: It’s my pleasure and thanks for your feedback.
Could you help with a recommendation or two for my situation? My accountant is closing up shop and we’re looking to file ourselves online. My wife and i are self-employed in different sole-proprietor businesses, we have rental property, crypto assets (foreign income) and lots of charitable receipts and capital losses from the past to bring forward with us. I’d rather not start in one system next year and have to switch due to lack of forms available. I’m trying to get prepared for 2021 taxes next year. If I can find a tax software that can handle everything but the crypto gains, i can work with that as well. (I prefer to do my taxes on my windows 10 laptop and live in Ontario).
@Unaverage Joe: Without knowing your full financial situation, I’d recommend TurboTax simply because you can also use their TurboTax Live service and get access to a tax specialist if you need to. On the crypto side of things, that may need a bit of work depending on how much trading activity you have. There are some online tools you can use to download your transactions directly from the exchange and get a P/L statement. I have checked out CoinTracker briefly, but can’t speak to whether or not it works very well.
very helpful – thanks
@Ron – my pleasure!