September 22, 2025
The professional tax preparation software market is currently undergoing a period of significant expansion and transformation. According to a 2024 analysis, the U.S. market size was valued at an impressive $6.4 billion, with a forecasted compound annual growth rate (CAGR) of 9.3% through 2032.
This robust growth is primarily fueled by a complex and ever-changing tax code, increased regulatory compliance demands, and a widespread shift toward digital solutions. North America, as the largest segment, held 35.21% of the global tax management software market in 2024, demonstrating its central role in the industry’s evolution.
While cloud-based solutions represent the fastest-growing and most dynamic segment, on-premises deployment still commands the majority market share, accounting for 60% in 2024. Many firms continue to favor this traditional model due to the greater control it offers over sensitive client data and its perceived security benefits.
However, this preference is gradually shifting. As a testament to this trend, the percentage of firms operating from a hard drive or network decreased from 82% in 2020 to 75% in 2023, signaling a slow but significant migration toward cloud infrastructure as firms embrace remote work capabilities and enhanced collaboration.
Based on their market presence, extensive user ratings, and advanced features, here are the top professional tax software platforms that define today’s market:
As a dominant player, Thomson Reuters UltraTax CS holds a commanding position, particularly among the nation’s largest accounting firms. A 2023 survey by the Journal of Accountancy showed that UltraTax CS was the most used Tax Prep Software, with 23.8% of respondents using the platform.
It is renowned for its exceptional ability to handle the most complex returns, including consolidated corporate filings and intricate estate tax forms. Its powerful features include robust multi-monitor support and a powerful suite of diagnostics, all of which are seamlessly integrated with other essential Thomson Reuters products, such as CS Professional Suite and Accounting CS, creating a truly unified ecosystem.
Lacerte Tax is a powerhouse solution from Intuit, known for its truly extensive form coverage and advanced diagnostics. This makes it a strong choice for CPAs who specialize in complex and diverse tax situations. It was used by 14.8% of professionals in the 2023 survey, demonstrating its widespread adoption.
Users consistently praise Lacerte’s comprehensive form library, which gives them confidence in handling virtually any tax scenario, as well as its intuitive input-based data entry system that simplifies a preparer’s workflow. It received a solid rating of 4.4 out of 5 from Journal of Accountancy survey respondents, reflecting its strong reputation and reliability.
Drake Tax has solidified its position as a favorite among solo practitioners and small firms due to its exceptional value and remarkable ease of use. It consistently ranked as the leading choice for sole proprietors in a 2024 survey by The Tax Adviser, a testament to its streamlined interface and efficient workflow.
Its user-friendly design minimizes the learning curve and allows preparers to focus on client service rather than navigating complex software. Drake Tax was rated the highest overall at 4.5 out of 5 by users in the Journal of Accountancy survey, underscoring its high satisfaction among its user base. Reflecting this, nearly 30% of all single-preparer firms reported using Drake Tax.
Ideal for firms of various sizes, ProSeries is celebrated for its forms-based interface and robust features. This Tax Prep Software provides a familiar and straightforward experience for preparers who prefer to work directly on tax forms rather than using a data-entry method. Its reliability and comprehensive feature set make it a dependable option.
A significant 10.5% of respondents in the 2023 Journal of Accountancy survey reported using it. Furthermore, it scored exceptionally high on ease of use, with a remarkable 69.4% of its users picking it as a top attribute, highlighting its reputation for simplicity and effectiveness.
A modern, cloud-native platform, CCH Axcess Tax is a trusted and forward-looking tax prep software solution used by a substantial number of top accounting firms. A 2023 survey noted that 90 of Accounting Today’s Top 100 Accounting Firms trust CCH Axcess, showcasing its elite standing in the market. Its cloud-native architecture offers unparalleled flexibility, allowing preparers to access client data and manage returns from anywhere with an internet connection.
The shift to this model is evidenced by the fact that 82% of its users access the platform from a vendor’s server rather than a local one, highlighting its role in the industry’s digital transformation.
An integrated desktop solution, CCH ProSystem fx Tax remains a cornerstone for a majority of the nation’s top accounting firms. Valued for its efficiency, security, and stability, it offers a deeply integrated experience that seamlessly connects various tax and accounting modules.
Used by 9.7% of professionals in a recent survey, its key selling point is its comprehensive form coverage. A staggering 90.7% of its users confirmed that the software contains all necessary forms, the highest rating among all surveyed products. This makes it an indispensable tool for firms that handle a wide array of complex and specialized tax forms.
A robust, cloud-based solution from Intuit, ProConnect Tax is specifically optimized for handling complex and intricate returns. It has been widely recognized for its clean user experience and intuitive design.
Its excellence has been acknowledged with 11 G2 awards in Winter 2025, demonstrating its strong performance and user satisfaction. ProConnect Tax is a leading choice for small businesses, with an impressive 96% of its users coming from that segment, a testament to its tailored features and pricing models.
ATX is a comprehensive yet easy-to-use Tax Prep Software for Accountants, CPAs and small firms. Its blend of powerful features and a value-conscious price point makes it a highly attractive option. It was rated as the easiest to use in a 2024 The Tax Adviser survey, with nearly 70% of its users citing ease of use as a top feature.
ATX strikes an excellent balance between providing a robust suite of tools and maintaining a simple, accessible interface, which is a major factor in its popularity among preparers who value efficiency and a minimal learning curve.
Known for its affordability and simplicity, TaxAct Professional provides a straightforward and user-friendly interface for tax practitioners. Despite its lower cost, it offers a surprisingly robust set of features, including automated tax calculations, thorough error-checking, and solid integration capabilities.
It is a particularly strong option for new firms or those with a high volume of straightforward returns that want to maximize their value without sacrificing essential functionality.
With a long-standing reputation in professional tax preparation, TaxSlayer Pro is a popular option for solo tax practitioners looking for a comprehensive and user-friendly system to handle a wide range of tax situations. The software excels at offering a powerful feature set in a simple package, making it a valuable tool for those who need a dependable and cost-effective solution for both simple and complex tax returns.
Looking beyond individual software platforms, several key trends are reshaping the professional tax industry. These two trends: automation and cloud adoption, are closely intertwined and will continue to influence platform development and firm strategy.
The data suggests that firms are increasingly prioritizing solutions that offer both greater efficiency through automation and the flexibility that cloud infrastructure provides. The platforms that can effectively integrate these capabilities will likely lead the market in the coming years.
The professional Tax Prep Software market is dynamic and competitive. There is a solution available for every type of firm, from the largest enterprises to the solo practitioner.
The data underscores the importance of choosing a platform based on more than just market share. You should consider user satisfaction, form coverage, and how its features align with your firm’s strategic goals.
As technology continues to advance, the most successful firms will be those that strategically leverage their software. This will help them maximize efficiency, enhance security, and deliver a superior client experience.
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