Filing a federal tax return can cost you nothing or several hundred dollars, depending on your income and how complex your return is. If your adjusted gross income is $89,000 or less, the IRS Free File program covers federal preparation and e-filing at no charge.1Internal Revenue Service. Use IRS Free File to Conveniently File Your Return at No Cost Above that threshold, commercial tax software generally runs $35 to $150 for a federal return, and hiring a professional typically costs $200 to $800 or more. State returns, payment processing, and a few common add-ons stack on top of whichever method you choose.
Ways to File for Free
Three separate programs let you file your federal return at no cost. Which one fits depends on your income, your age, and how much guidance you want.
IRS Free File Guided Software
If your AGI is $89,000 or less, IRS Free File gives you access to guided tax software from eight participating providers for the 2026 filing season.1Internal Revenue Service. Use IRS Free File to Conveniently File Your Return at No Cost Each provider sets its own eligibility rules within the AGI cap, so compare the offers through the IRS website before picking one.
This is not the same thing as the “free edition” that software companies advertise on their own sites. Those commercial free versions usually handle only W-2 income and the standard deduction, and they push you to a paid upgrade the moment you add student loan interest, childcare expenses, or other credits. The IRS Free File version covers everything in the provider’s offer at $0 as long as you’re under the income limit. Some providers include a free state return; others charge for state filing.2Internal Revenue Service. E-File: Do Your Taxes for Free
Free File Fillable Forms
Free File Fillable Forms is open to any taxpayer, regardless of income.3Internal Revenue Service. Free File Fillable Forms You get electronic versions of the standard IRS forms with basic math built in, but no step-by-step interview. You’ll need to read the form instructions yourself and enter figures directly. Federal e-filing is free; the program doesn’t handle state returns.
VITA and TCE In-Person Help
The Volunteer Income Tax Assistance program serves taxpayers earning roughly $67,000 or less, people with disabilities, and taxpayers with limited English proficiency. Tax Counseling for the Elderly serves people 60 and older.4Consumer Financial Protection Bureau. Guide to Filing Your Taxes IRS-certified volunteers prepare and e-file returns at community sites for free. The IRS website has a locator tool for nearby sites.
What Commercial Tax Software Costs
If you don’t qualify for a free option or you want more features, commercial software is the next rung up. Prices shift throughout the filing season, but the tiers generally break down like this:
- Free or basic tiers cover simple returns with W-2 income, the standard deduction, and limited credits. Anything more complicated, including itemized deductions, typically forces an upgrade.
- Deluxe or mid-range tiers run $35 to $100 for the federal return and add itemized deductions, student loan interest, childcare credits, and mortgage interest.
- Premium or self-employed tiers generally cost $70 to $150 for the federal return and handle freelance and contractor income, rental properties, depreciation, and capital gains.
State returns are almost always priced separately, usually $37 to $50 per state. A few providers throw in one free state return with certain tiers, so read the fine print before you assume it’s included.
Look out for optional add-ons at checkout. Audit defense packages, priority support, and identity theft monitoring can each add $20 to $60. Several major providers include basic audit support with paid tiers at no extra cost, so you may not need to buy it separately.
What a Tax Professional Costs
Hiring someone to prepare your return costs more than software but comes with personalized advice. Fees depend on your return’s complexity, your location, and the preparer’s credentials.
- A simple Form 1040 with the standard deduction generally costs $200 to $300 at a retail franchise or independent preparer.
- Adding Schedule A for itemized deductions typically brings the total to $300 to $450.
- Returns with self-employment income on Schedule C, rental properties, or both usually run $400 to $800 or more.
Enrolled agents and CPAs charge at the higher end of these ranges and often bill by the hour. CPA hourly rates typically fall between $200 and $400, sometimes higher depending on experience and market. The premium buys more than a prepared return: enrolled agents and CPAs can represent you directly before the IRS in audits, appeals, and collections.
State returns add $50 to $150 per state to a professional’s bill. E-filing is usually bundled into the service price, so you generally won’t see a line item for electronic submission.
State Return Costs
Eight states have no individual income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, and Wyoming. Residents there don’t file a state return and don’t pay a state filing cost.
Everywhere else, expect the state fee to stack on top of the federal cost, roughly $37 to $50 through commercial software and $50 to $150 through a professional. Some state revenue departments run their own free direct-file portals, so check your state tax agency’s website before paying for a state add-on.
Fees That Get Added at the End
Paying the IRS by Card
If you owe and want to pay by credit or debit card, the IRS uses third-party processors that charge convenience fees.5Office of the Law Revision Counsel. 26 USC 6311 – Payment of Tax by Commercially Acceptable Means Personal credit card payments carry a fee of 1.75% to 1.85% of the amount (minimum $2.50). Personal debit card payments cost a flat $2.10 to $2.15.6Internal Revenue Service. Pay Your Taxes by Debit or Credit Card or Digital Wallet On a $5,000 bill, a credit card payment adds $87 to $93 in fees. Paying by direct bank transfer through IRS Direct Pay is free.
Paying Your Preparation Fee Out of Your Refund
Most tax software offers a “pay with your refund” option so you don’t have to put the preparation fee on a card upfront. The fee gets deducted from your refund when it arrives. That convenience costs about $35 to $55 in a refund transfer fee, on top of the preparation price. An $85 software fee becomes an effective $120 to $140. Paying the preparation fee upfront avoids the charge.
Filing an Extension
Form 4868 gives you an automatic six-month extension to file, and the IRS charges nothing to submit it. The extension pushes back the filing deadline only, not the payment deadline. Interest still accrues on any unpaid balance from the original due date until you pay in full.7Internal Revenue Service. Application for Automatic Extension of Time to File US Individual Income Tax Return (Form 4868)
What Filing Late Costs
Missing the deadline doesn’t erase what you owe. The IRS applies two penalties that can run at the same time.
- The failure-to-file penalty is 5% of the unpaid tax for each month or partial month your return is late, capped at 25%.8Internal Revenue Service. Failure to File Penalty
- The failure-to-pay penalty is 0.5% of the unpaid tax per month or partial month, also capped at 25%. On an approved IRS payment plan, the rate drops to 0.25% per month.9Internal Revenue Service. Failure to Pay Penalty
When both apply in the same month, the failure-to-file penalty is reduced by the failure-to-pay amount, so the combined charge is 5% per month for the first five months.8Internal Revenue Service. Failure to File Penalty Once the failure-to-file penalty maxes out, the failure-to-pay penalty keeps running until the balance is paid or it also hits 25%.
Interest also accrues on the unpaid tax from the original due date. The IRS resets this rate quarterly. For the first quarter of 2026, the individual underpayment rate is 7% per year, compounded daily.10Internal Revenue Service. Interest Rates Remain the Same for the First Quarter of 2026 On a $3,000 balance, that’s about $17 a month in interest before any penalty. If you can’t pay in full, file on time anyway. It cuts your monthly cost from 5% down to 0.5%.