Tax Preparation Costs in 2026: CPA, EA & Software Compared

Tax Preparation Costs in 2026

Professional tax preparation costs $200-$600 for individuals and $500-$2,500 for businesses. DIY software runs $0-$120.

Individual Tax Return Costs

• Simple return (W-2 only): $150 – $300
• Itemized return: $250 – $500
• Self-employed/freelancer: $300 – $600
• Rental income/investments: $400 – $800
• Multi-state filing: Add $50 – $150 per state

Business Tax Return Costs

• Sole proprietorship (Schedule C): $300 – $600
• Partnership/LLC (Form 1065): $500 – $1,500
• S-Corporation (Form 1120S): $800 – $2,000
• C-Corporation (Form 1120): $1,000 – $2,500

CPA vs. EA vs. Software

• CPA: Highest cost ($250-$500+), best for complex situations, can represent you in audits
• Enrolled Agent: Mid-range ($200-$400), IRS-licensed, specialized in tax
• Tax chain (H&R Block etc.): $150-$350, good for straightforward returns
• DIY software (TurboTax, FreeTaxUSA): $0-$120, best for simple returns

When to Hire a Professional

Hire a tax pro if: you have self-employment income, rental properties, investment losses, life changes (marriage, home purchase, kids), received an IRS notice, or want to maximize deductions.