Who likes doing taxes?
Honestly, no one.
I've worked with 900+ small business owners, and I can tell you that tax season is a real headache for them.
Paying taxes is something you have to do, but dealing with all those forms—1040, 1099, Schedule C—makes it feel even worse.
You can make it easy by always knowing a rough estimate.
Wishup is a virtual assistant company in the United States.
Get a FREE estimate of your US business tax filing cost
No income numbers. No long forms. Just a quick estimate.
Then, you can hand it off to a tax expert who can handle your tax planning and filing, using accounting automation software. Now, I know what you're thinking—how much does it cost to file taxes?
Real Talk: It won't be free unless you have a friend or family member who's a tax expert.
So, how much does it cost to hire a professional for tax help? Let's take a detailed look.
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How Much Does it Cost to File Taxes?
Understanding the Basics of Tax Preparation Costs
It costs about $220 on average to file taxes with a professional for a basic Form 1040 and state return. The average tax preparation fee rises to $323 with itemized deductions. The IRS expects more than 164 million individual tax returns for tax year 2026 to be filed ahead of the federal deadline.
More than half of taxpayers turn to a tax professional for help filing a tax return.
Now, let’s talk numbers because when tax season rolls around, that’s all that seems to matter. Some people get away with spending just a couple of hundred bucks, while others shell out thousands. So, where do you fit in? Let’s break it down.
How Much Is It to File Taxes as an Individual?
It's about $220 to file taxes as an individual with a preparer for a basic Form 1040 with a state return, and $300 to $600+ if you're self-employed, itemize, or have several income sources. That number is a starting point.
If you’re thinking, How much does filing taxes cost?
Remember that the average cost of filing taxes can range from $300 to $600 or more, depending on your situation. But if you’re self-employed, have multiple income sources, or itemized deductions, you’ll pay $300 to $600+ or more, depending on:
- How complex your tax return is (multiple deductions, credits, or income sources)
- Where you live (some areas have higher rates)
- How your tax preparer charges (flat fee vs. hourly rates)
Can You File Taxes Online for Free? IRS Direct File in 2026
IRS Direct File, the IRS's free online filing tool, is not available in the 2026 filing season. It launched as a pilot in 2024 and expanded to 25 states in 2025, before the IRS told participating states it would not return. The free federal filing options that remain are IRS Free File (partner software for eligible taxpayers), Free File Fillable Forms, and the VITA and TCE volunteer programs. Paid online software such as TurboTax prices federal returns from $0 to $130+, plus state filing fees.
Tax Preparation Prices: How Much Do Tax Firms Charge in 2026?
According to a recent US Accounting and Tax Pricing Benchmark report by Ignition,
- Almost half (49%) of tax firms charge $400 to $799 for personal tax returns.
Around 10% of firms charge less than $400. - And heads up, 80% of tax firms plan to raise their prices in 2026, most by 5% to 10%.
And heads up, 90% of tax firms plan to increase their prices in 2026, with many bumping them up by 5% to 10%.
For a tailored estimate, check your tax filing cost with the calculator below.
US Tax filing cost calculator 2026:
How Much Does It Cost to File Business Taxes?
Running a business? Be prepared to spend more cost to file taxes.
29% of firms charge $1,000 to $1,499 for business tax returns.
And just like personal tax preparation, business tax filing costs are on the rise 80% of firms plan to raise their fees in 2026, most by 5% to 10%.
And just like personal tax preparation, business tax filing costs are on the rise—87% of firms plan to hike their fees in 2026.
How Tax Preparers Charge: The Four Approaches for Tax Preparation Costs
The cost to have taxes done depends on how your preparer bills.
Tax professionals use a few different methods to bill their clients:
- Hourly Billing: You pay for each hour of work. Rates vary, but you get charged based on the time spent.
- Fixed Fees: The fee is set before the work begins, often based on an estimate of how long or how complex the task will be.
- Value Pricing: You’re charged based on the maximum you’re willing to pay for a particular service.
- Value Billing: The invoice might be adjusted up or down after the work is completed, reflecting the actual value provided.
Knowing which method your tax preparer uses can help you better plan and compare the cost of filing taxes with different service providers.
What is the Average Cost of Filing Taxes by Form and Service?
For a detailed look at what you might be paying as tax preparation costs, here’s a snapshot of average costs of filing taxes per tax form and hourly fees as reported by an industry survey:
| Tax Form | Cost per Form | Average Hourly Fees for Filing Tax |
|---|---|---|
| Form 940 (Federal Unemployment) | $78 | $111.95 |
| Form 940 (Schedule C, Self Employment Tax) | $41 | $148.12 |
| Schedule C (Business) | $192 | $149.95 |
| Schedule E (Rental) | $145 | $149.52 |
| Schedule EIC (Earned Income Credit) | $65 | $146.70 |
| Form 1040 (not itemized) | $220 | $153.74 |
| Form 1040 (itemized) | $323 | $161.34 |
| Form 709 (Gift Tax) | $421 | $178.29 |
| Form 1041 (Fiduciary) | $576 | $172.66 |
| Form 1065 (Partnership) | $733 | $177.29 |
| Form 990 (Exempt Organization) | $735 | $171.48 |
| Form 1120-S (S Corporation) | $903 | $179.81 |
| Form 1120 (Corporation) | $913 | $181.57 |
| Form 706 (Estate) | $1,289 | $188.63 |
These figures give you a baseline for what various forms typically cost to file taxes. Whether you’re filing as a business or dealing with personal returns, these numbers help you anticipate expenses.
How Much Does It Cost to File Back Taxes?
If you're catching up on one or more prior-year returns, budget more than a
standard filing. Most preparers add a non-current-year retainer — typically
around $377, on top of the base form fee for each return you're behind on.
What drives the cost up:
- Number of years owed: Each additional year is billed separately; the
retainer often applies per return, not per engagement. - Missing records: If you don't have W-2s, 1099s, or prior statements on
hand, expect an added disorganized-records fee (commonly ~$166) since the
preparer has to reconstruct income data. If your books are behind too, start with a bookkeeping cleanup. - IRS penalties and interest: These aren't preparation fees, but they
accrue the longer a return goes unfiled, so budget for both.
For someone behind on 2–3 years of simple returns, all-in preparation costs
often land between $600 and $1,500 before penalties. Wishup's tax team
handles multi-year catch-up filing as part of a flat-fee engagement — get a
free estimate for your specific situation.
Hidden and Extra Tax Filing Fees to Watch For
Tax preparers might throw in additional fees beyond the standard form or hourly rates.
Here are some typical extra cost to file taxes charged by tax professionals.
- Disorganized or Incomplete Files: Preparers commonly add $117–$145 on average for disorganized or incomplete paperwork, based on National Society of Accountants survey data.
- IRS Audits: Expect $128 for an audit response letter, or roughly $150/hour for full audit representation, based on NSA survey data — costs rise significantly for complex or multi-year audits.
- File Extensions: Expect about $56 for filing extensions.
- Non-Current Year Preparations: A retainer of around $377 may be charged if you’re dealing with previous years’ returns.
- Expedited Returns: Speeding up the process could cost you an additional $136.
By understanding these potential costs to file taxes upfront, you can better prepare your budget and avoid surprise fees during tax season.
How Clean Books Lower the Cost to File Taxes
Most extra tax preparation fees come from messy books. A preparer charges less when these are in order before tax season:
- Bank feed and reconciliation: every account matched to its statement
- Chart of accounts: income and expenses categorized consistently
- Accounts payable and accounts receivable: unpaid bills and customer invoices up to date
- Invoices and expense receipts: stored and matched to transactions
- Month-end close: profit and loss statement, balance sheet and cash flow statement ready each month
- Catch-up bookkeeping: any missed months brought current
- CPA handoff: clean books, kept in QuickBooks or Xero, sent to the CPA (bookkeeper vs accountant)
Wishup's virtual bookkeeper keeps these in order all year, which keeps the cost to file taxes down. Each bookkeeper is trained on QuickBooks and Xero. Onboarding takes 60 minutes. Managed bookkeeping starts at $299 a month, and a dedicated bookkeeper starts at $999 a month part time.
Tips to Consider When Choosing a Tax Return Professional
Hiring the right tax preparer isn't something you want to rush into.
Before you hand over your paperwork, it's important to know who you're trusting with your information and ask the right questions to make sure they're a good fit.
For a look at one full-service online option, see our 1-800Accountant review.
However, it's also important to note that you are responsible for everything, regardless of who completes your tax return.
That's right.
If something goes wrong, you're the one who'll be responsible. So, take the time to choose carefully. It could save you a lot of headaches down the road.
Here are a few tips to take note of when choosing a tax return preparer:
- When hiring a tax preparer, contact a person who is available year-round. In case you need to contact the preparer after the tax filing season ends.
- Review the tax preparer's history, including disciplinary actions and license status.
- For CPAs, visit the State Board of Accountancy's website.
- For attorneys, check the State Bar Association's website.
- For enrolled agents, go to IRS.gov and search for "verify enrolled agent status" or check the IRS Directory of Federal Tax Return Preparers.
- Avoid preparers who base fees on a percentage of your refund.
- Do not hire preparers who offer to deposit your refund into their accounts, and be cautious of preparers who claim they can get larger refunds than competitors.
- Never sign an incomplete or blank return. Review it before signing.
- Do not hire a tax preparer who e-files a tax return using a pay stub instead of a Form W-2. It is against IRS e-file rules.
Why Paying for a Tax Professional is Worth It
Sure, you could file your taxes by yourself, but mistakes in tax filing are costly—missed deductions, IRS penalties, and the risk of audits. Plus, the time spent figuring it all out? You could use that time to focus on growing your business.
That’s why so many business owners choose to outsource tax filing.
Instead of dealing with the stress, they hire experts who file their taxes and help them stay organized year-round.
Final Thoughts: Make an Informed Decision on the Cost of Filing Taxes
Ultimately, knowing how much it costs to file taxes helps you plan better and choose the right professional for your needs. To plan your tax season effectively, ask the right questions, understand the fee structures, and be aware of additional charges.
Start by getting a FREE estimate now.
Wishup's bookkeeping plans start at $299 a month, with 60 minute onboarding. Hire a virtual bookkeeper.
Get a FREE estimate of your business tax filing cost
No income numbers. No long forms. Just a quick estimate.
Frequently Asked Questions About Tax Filing Costs
How much to file taxes?
It costs $0 to $100 to file taxes with DIY tax software, $220 to $323 for a basic Form 1040 with a preparer, and $500 to $3,000+ for a business return.
How much does it cost to file taxes?
It costs about $220 on average to file taxes with a professional for a basic Form 1040 and state return, rising to $323 with itemized deductions.
How much is it to file taxes as an individual?
It's about $220 for a basic Form 1040 with a state return, and $300 to $600+ if you're self-employed, itemize, or have several income sources.
How much should it cost to file taxes?
A simple federal return should cost $0 to $100 with software, and about $220 with a preparer. Paying more than $600 for a personal return is only normal if your return is complex.
How much does it cost to get your taxes done?
Most people pay between $220 and $600 to have a professional prepare and file
their taxes, depending on the complexity of the return. A basic Form 1040 with
a standard deduction averages $220. Adding itemized deductions, self-employment
income, or rental income can push the cost to $300–$600+.
How much does it cost to file back taxes (prior-year returns)?
Filing a prior-year return usually costs more than a current-year filing.
Expect to pay the standard form-based fee (e.g., $220 for a basic 1040) plus
a non-current-year retainer, which averages around $377. The exact cost
depends on how many years you're catching up on and how organized your
records are.
What is the average tax filing fee?
The average tax filing fee for a Form 1040 with a state return and no
itemized deductions is $220. With itemized deductions (Schedule A), the
average rises to $323. Business returns run significantly higher — see the
form-by-form table above.
How much does it cost to file with H&R Block, TurboTax, or similar tax software?
Major tax software providers typically range from $0 for the simplest returns
to $85–$130+ for federal filing on more complex returns, plus a separate
state filing fee (often $40–$50). Costs rise further if you add live
CPA/EA support. A flat-fee professional service like Wishup ($150) can work
out cheaper than software once you add state filing and support add-ons.
What's included in a standard tax return fee?
A standard tax return fee typically covers preparation of your federal
return, one state return, and standard e-filing. It usually does not
include extras like disorganized-records fees (~$166), filing extensions
(~$56), audit support retainers (~$902), or expedited processing (~$136) —
these are billed separately by most preparers.
