The Best Tax Software in Canada in 2023
By Nick Robert
Choosing the best tax software in Canada is vital to file your tax return correctly. The Canada Revenue Agency doesn’t care what tax software you use, but you need to ensure the tax software you choose calculates your income tax accurately.
I have ranked and reviewed the best tax software options in Canada to take the guesswork out of tax filing. My top 5 choices are summarized in this article – most of these will work for most Canadians.
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What is tax return software?
Tax return software helps you prepare your annual tax return. Annually, personal income tax returns are due by the last day of April, or if the last day of April falls on a holiday, your individual income tax return is due on the First Monday in May.
Free income tax software exists to help you file simple tax returns. Paid tax return software is usually required for more complex tax returns. Tax return software makes it easier and faster to complete your tax return. Generally, you will complete a questionnaire to determine which schedules are needed, input your information into the forms, review and optimize your tax return and file electronically.
What is the best online tax software in Canada?
TurboTax – best overall tax software
Key Features:
- CRA Netfile certified
- Cost – $0 – $34.99 per tax filing or use their assist and review options from $39.99 to $89.99
- easy to use for simple or complicated tax scenarios
- Auto-fill tax slips
Turbo tax has a free tax software option (Turbotax free) and a paid version. The free version is only available for simple tax returns. The complexity is determined by sources of income and accompanying schedules required for your tax filing.
Turbo tax is straightforward to get started. Start by importing your prior year’s income tax return, complete the questionnaire to determine which schedules you require, and auto-fill your tax return by linking to your CRA account.
I recommend using the $19.99 version even if you have a simple tax return. The paid version searches for over 400 credits and deductions that could apply to your return. You may save more than $19.99 by using this functionality.
Turbo tax also has options to review your tax return by tax professionals. If you are unfamiliar with tax software and filing your own taxes, this option could help you save money on your income tax filing.
Wealthsimple tax – Best free tax software
Key Features:
- CRA Netfile certified
- Best free tax return software
- Auto-fill tax slips
- Easy to use if you have a grasp on completing a tax return
Wealthsimple tax is entirely free to use, and I have it ranked as the best free tax software in Canada. Not only is wealthsimple tax-free to use, but it’s also free even if you are not a wealthsimple client.
It comes with similar functionality as Turbo Tax, but it doesn’t have some of the extra functionality that Turbo Tax software has. If you do not require additional functionality like having a professional review your tax return and grasp how to file your own taxes online, this is one of the best options.
Wealthsimple tax automatically optimizes your tax return and recommends deductions that may apply to you. It is suitable for reporting more than just T slips and investment income – you can use it for rental income, capital gains and much more.
In conclusion, wealthsimple tax is one of the best free online tax software options to file your tax return.
H&R Block – Great tax software with the ability to choose your support level
Key Features:
- CRA Netfile certified
- Auto-fill tax slips
- Free tax return software, $24.99 for assisted tax filing, $44.99 for complete support
- Optimize your tax return
The online tax software from H&R Block is an excellent choice as you can do it yourself for free, have some assistance, or complete support at a reasonable price.
The get-to-know-you interview questions help determine which tax forms you need to complete for your tax return. Additionally, you can connect with your CRA account and auto-fill tax slips.
The optimize features help you get the most significant refund you can. If your tax return is too complicated, you can upgrade to the assisted or complete support options. This ensures you have the right level of support to optimize your tax filing.
UFile
Key Features:
- CRA Netfile certified
- Auto-fill tax slips
- Optimizes tax deductions for the largest refund
- Free for simple returns or $19.95 for more complicated return
UFile has great online tax software designed to make completing your tax return as easy as possible. Start by completing the questionnaire to determine the applicable required tax forms, and then auto-fill your tax slips to help you quickly complete your tax return.
UFile also recommends deductions that may apply to you to help you get the most significant refund possible. Additionally, they store up to seven years of tax returns online, making it easy to pull information from a prior year’s income tax return.
CloudTax
Key Features:
- CRA Netfile certified
- Auto-fill tax slips
- Maximum refund guaranteed
- Free version or paid versions from $29.99
CloudTax does its best to make filing your tax return as simple as possible. Start by answering basic questions about yourself to determine the applicable tax schedules that need to be completed. You can import your tax slips directly from the CRA into your tax return.
While there is a free version, you may miss out on some of the required functionality of the paid versions starting at $29.99. The paid version is recommended for more complicated tax scenarios such as calculating and reporting capital gains.
Both the free and paid versions have unlimited access to chat support, making CloudTax one of the top choices for the best tax software.
How to choose the Best Tax Software?
Netfile compatible with Canada Revenue Agency?
All the options listed in this post are compatible with Netfile from the CRA. You can use Netfile to file your tax return electronically. Make sure that if you choose a software not listed in this post, it is compatible with Netfile. Otherwise, you have to file a paper return!
Functionality
I judged functionality based on the features available in the free and paid versions of the tax return software. You will want the following functionality:
Auto-fill tax slips from the CRA to save time and ensure completeness
Optimization of income tax refund between spouses
Determining which schedules you need to complete
Recommending tax deductions and credits to apply to your tax return
All of the options in this list have this functionality in the paid versions.
Ease of use
Let’s face it, filing your taxes is not a fun activity. A clean and easy-to-use interface that is easy to navigate can help remove a lot of the pain in this process. All of these options are relatively easy to use. However, ease of use also comes down to experience with the tax filing process and what you are most comfortable with.
Cost
Most of the options listed in this post have free and paid versions. Generally, a simple tax return will be free or low-cost, and the more complicated tax scenarios have a fee attached. Additionally, if you want your tax return reviewed by a professional, it comes with added cost.
If you opt for the paid version, you can pay with a cash-back credit card to lower your cost. Click here for the best cash back credit cards in Canada.
Should I use tax software or tax preparation services?
The tax filing process can be complicated, depending on your scenario. If you only have employment income and receive tax slips (T4s, T5s, etc.), then almost any tax software in Canada will meet your needs.
When you have self-employment income, investment income, rental income or dependents, your tax filing is one of the more complicated tax scenarios. Depending on your experience with filing your own taxes online, you may want to consider leveraging tax preparation services.
Suppose you have highly complex tax scenarios with extensive write-offs that may lead to you being audited. In that case, I recommend consulting a tax professional to ensure your tax return is error-free.
Conclusion
No one likes to file their taxes, and the less time you have to spend deciding how you are going to complete your tax return, the better. Any of these five options will work on filing your taxes online, whether it is a simple or complicated tax return.
As you are looking for the best option to file your tax return, you may be interested in learning more about personal finance. I run a personal finance blog and if you want to increase your income, click here to learn more about the best business to start in Canada in 2022.
About the Author
Nick Robert is the founder and creator of Nickrobert.com. I created this website to educate Canadians about everything related to personal finance. As a Chartered Professional Accountant & Chartered Accountant, I have worked with many Canadians to achieve their personal finance goals.
To contact me, you can visit my contact page to email me directly, or you can visit and participate in my subreddit. Let me know about any topics you would like me to cover. If you are interested in guest posting on this website, message me through the contact page.
