Best Canadian Tax Software for 2022: Easy Tax Filing Online

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 91.8% of Canadians who filed tax returns in 2022 did so by using electronic filing methods.

Of these, 32.6% used tax software approved by the CRA for NETFILE, 59% 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 over 2.5 million returns in the 2021 tax year.

As you prepare for the 2022 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.

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.

For a free tax filing software, this program compares favourably to the paid versions of TurboTax.

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 2021 tax year, Wealthsimple Tax is also offering free tax filing for crypto trades. If you bought or sold crypto, you can automatically import your trades from over 300 crypto exchanges.

The software calculates your capital gains and losses and includes them in your tax return filing.

Cost: Wealthsimple Tax is free. If you want, you can make a small donation after 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
• CRA-approved for NETFILE
• Free tax filing for capital gains/losses from crypto and stock trades
• Audit support is available for a small fee
• 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.

Sign up for Wealthsimple Tax

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 $19.99, and premium options are available, with prices ranging from $34.99 to $99.99, depending on your needs.

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.

SIGN UP FOR TURBOTAX + 15% OFF

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 as well as 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), Assistance ($19.99), and Protection ($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

SIGN UP FOR H&R BLOCK

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.

Similar to the other tax software on this list, you can use GenuTax to file for the 2020 tax years as well as previous years up to 2010.

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 are a participant of 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

SIGN UP FOR GENUTAX

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
• 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

SIGN UP FOR CLOUDTAX

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 $19.95, and UFile Premium starts at $29.95.

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

SIGN UP FOR UFILE

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

GET STUDIOTAX

TurboTax vs. SimpleTax vs. StudioTax vs. UFile

	Wealthsimple Tax	TurboTax	StudioTax	UFile
Price	Free; can make a donation	Free option; standard version costs $19.99+	$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	Learn more	–	–

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 or Wealthsimple Tax), 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

Tax Updates For the 2023 Tax Season

For the 2023 Tax Year, you should take note of the following tax numbers:

Federal Income Tax Rates

• Up to $53,359: 15%
• $53,360 to $106,717: 20.50%
• $106,718 to $165,430: 26%
• $165,431 to $235,675: 29%
• $235,676 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 2023 is $6,500, increasing by $ 500 from the level it was in 2022.

Here are some TFSA investment options.

Basic Personal Amount

The basic personal amount in 2023 is $15,000 (compared to $14,398 in 2022). Individuals who earn a taxable income higher than $165,430 will see a gradual phase-out of the basic personal amount until it reaches $13,521.

RRSP Limit

The RRSP limit in 2023 is $30,780, increasing from the $29,210 dollar limit in 2022.

Canada Child Benefit

The base CCB amount for children under 6 has increased to $7,437 (from $6,997 in 2022), and for kids aged 6 to 17, it has increased to $6,275 (from $5,903 in 2022).

For a longer list of taxes and benefits that have changed, click here.