Tax Preparation Software Developers in the US - Industry Research Report

Tax time: Advancements in mobile tax software and the incorporation of AI language models are expected to hinder industry growth

If Benjamin Franklin had lived in the 21st century, his famous adage might have read a little differently: 'In this world, nothing can be certain except death and taxes being way too complicated.' Tax software packages have evolved into an invaluable tool, transforming the often-dreaded tax season into a less daunting experience for many. Its appeal lies in its ability to simplify the complex tax filing process, automate calculations, and ensure compliance with ever-changing tax laws. These platforms have gained popularity with an increasingly tech-savvy population. However, in recent years, tax software makers have faced a series of challenges that have shifted the bedrock of private tax software itself, despite revenue continuing to rise at a CAGR of 4.5% to $4.4 billion in 2023, when revenue will expand 2.3%.

This industry provides software, usually hosted online, that enables individuals to file federal and state tax returns. The software is designed to guide users through their tax returns step-by-step. Additionally, operators in the industry provide software for small businesses. This industry excludes tax preparation software used by professional accountants.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.