Tax season is fast approaching, which means now is the time to start thinking about how you’ll file your taxes. For many Canadians, using tax software is one of the easiest and most efficient ways to file. This article will cover everything you need to know about free vs paid tax software, from the differences to the advantages of each. While free software works well for simple returns, paid versions offer added support and features for more complex tax situations. It can be the better choice to help you file if you have dependents, deductions, or self-employment income.
Like all tax software available at Best Buy Canada, the software discussed in this guide—including trusted brands like TurboTax and UFile—is CRA NETFILE certified. This article will break down what free and paid tax software each offer, who each option is best for, and how to decide which one fits your needs for the 2026 filing season.
What free tax software typically offers
Simplicity is the name of the game for free tax software. For people with a straightforward tax situation and minimal paperwork to file, it can be a great option. If your return looks more like a single page than a binder, free tax software may be all you need.
There are strong options for free tax software in Canada, and most will allow you to file a basic return that includes employment income from a T4 slip. The software will usually guide you through entering your income, claiming the basic personal amount, and submitting your return through NETFILE.
TurboTax Free, for instance, is built for Canadians with a very basic return. It’s a general-use software that works well if you have employment income and little else. UFile Free is also specifically designed for those with simple tax returns like post-secondary students. It allows them to file simple taxes without cost as long as their tax situation meets certain criteria.
However, free versions don’t cover more complex tax scenarios. They keep things simple by excluding advanced deductions, detailed guidance, and multi-return household support. It won’t necessarily guide you through adding things like RRSP contributions, investment income, rental properties, or claiming dependents. The support in free tax software is also limited or nonexistent. You’re generally on your own, relying on FAQs rather than live help.
Who should use free software?
There’s no reason to pay for extra features if your tax return is straightforward. Free tax software may be right for you if:
- You’re a first-time filer or a student: Many students only need to report employment income from a part-time job and track tuition credits. Free software is a low-risk way to learn the filing process without added cost.
- You have a single income with a straightforward return: If your income comes solely from a T4 and you don’t have investments, dependents, or deductions to claim, free tax software can cover everything you need.
- You’re filing a single return with no dependents: Free versions are typically designed for one-person households. Once you start filing for family members or sharing credits, limitations become more noticeable.
- You already have CRA MyAccount set up: Many free tools can auto-fill your return using CRA data, making filing faster and reducing manual entry.
Find the right tax software for you
TurboTax by Intuit
File between 4 and 20 returns (depending on version) with TurboTax. This platform is available in English and French and has different options depending on your filing needs.
UFile
File easily with step-by-step guidance in French or English. Choose from filing 4 or 12 returns with UFile.
What you get with paid tax software
When you upgrade to a paid option, you gain access to enhanced guidance that walks you through deductions and credits you might otherwise miss.
1. Access to more deductions and credits
Paid software guides you through commonly missed deductions such as RRSP contributions, charitable donations, medical expenses, childcare costs, and tuition transfers, helping ensure you claim what you’re entitled to.
2. Support for families and multiple returns
Many paid versions allow you to prepare and file multiple returns under one licence. If you’re managing shared credits and dependents as a couple or a family, multi-return paid filing can really help to save you time.
3. Built-in tools for self-employed and gig workers
Paid software simplifies self-employed tax filing in Canada by helping you report business income, track expenses, and account for GST/HST with clearer prompts and explanations.
4. Handling of complex income sources
Rental income, investments, and side hustles introduce layers of complexity that most free software doesn’t support. Paid options are designed to handle these scenarios accurately.
5. Enhanced guidance
Options like TurboTax Home & Business, TurboTax Deluxe, and UFile Pro offer more detailed, step-by-step guidance as you file your taxes. Paid tax software acts as a guide, a checklist, and a safety net, helping you file accurately and confidently on your own—even when your return gets complicated.
Read our 10 essential tax tips to help you prepare for tax season in Canada.
Who should upgrade to paid software?
Still not sure if you should go with free vs paid tax software? Here’s a simple way of looking at it: if your tax situation goes beyond a basic return, upgrading to paid software is often worth it. Paid tax software is likely a better fit if you meet the following criteria.
- You’re filing for a family or multiple people: Managing dependents, childcare expenses, and credits like the Canada Child Benefit is easier when the software supports multiple returns and shared deductions.
- You’re a homeowner or claiming multiple deductions: RRSP contributions, medical expenses, and charitable donations can add up. Paid software helps ensure these credits are captured correctly.
- You’re self-employed, freelancing, or working gig jobs: Reporting business income, tracking expenses, and understanding eligible deductions requires more advanced tools than free versions offer. Options like TurboTax Home & Business are ideal for self-employed individuals filing their personal taxes, people with multiple jobs, and people who pick up gig work like driving for Uber on the side.
- You have investments or rental income: Capital gains, dividends, and rental expenses introduce complexity that paid software is designed to handle accurately.
If your return feels even slightly complicated, paid software can save time, reduce errors, and help maximize your refund—or minimize what you owe.
Featured comparison: TurboTax vs. UFile
When it comes to the best tax software Canada 2026, TurboTax and UFile are two of the most trusted names. Both are CRA-NETFILE certified and widely used by Canadians, but their free and paid versions differ in important ways.
| Feature | TurboTax Free | TurboTax Standard (Basic, Premier, Deluxe, and Home & Business) | UFile Free | UFile Pro |
| CRA NETFILE support | Yes | Yes | Yes | Yes |
| Multiple returns | No | Yes | No | Yes |
| RRSP & donation credits | No | Yes | No | Yes |
| Rental income support | No | Yes (Premier and Home & Business) | No | Yes |
| Self-employment income | No | Yes (Home & Business) | No | Yes |
NETFILE support
TurboTax Free and TurboTax Standard both support NETFILE, allowing you to submit your return electronically. The same is true for UFile Free and UFile Pro. No matter which version you choose, filing online is quick and secure.
Multiple returns
Free tax software typically supports only one return per user. For instance, TurboTax Free is limited to a single return, while TurboTax Standard allows multiple returns, making it a better option for multi-person households. UFile Free also is also limited to a single return, while UFile Pro supports multiple filings.
RRSP and donation credits
Free versions generally don’t support these credits, while paid versions from both TurboTax and UFile do. If you’ve contributed to an RRSP or donated to charity, paid software will better cover your bases.
Rental and self-employment income
Free versions from both brands do not support rental or self-employment income. TurboTax’s Premier and Home & Business tiers handle these scenarios, while UFile Pro offers similar functionality.
Guided help
TurboTax Free and UFile Free provide basic guidance for simple returns. Paid versions offer enhanced help, which involves a deeper walkthrough for things like deductions and issues being flagged.
Which one should you use?
Free tax software is excellent for straightforward returns. If you’re a student, a first-time filer, or someone with a single T4 and no dependents, free tools get the job done efficiently and at no cost. Paid tax software, on the other hand, is a better fit if your financial life has more moving parts. Dependents, deductions, investments, and self-employment income all add complexity that paid tools are built to handle.
You can shop tax software at Best Buy Canada and choose from a range of free and paid options designed for Canadian taxpayers. Whether you’re filing online for the first time or managing multiple returns for your household, there’s a version that’ll fit your personal tax needs during filing season.
To make tax season even smoother, consider pairing your software with a few helpful tools. A shredder helps you safely dispose of old tax documents, once 6 years have passed. A printer or scanner can be handy for keeping physical copies of your taxes or digitizing the receipts you’ve included in your filing. And cloud storage devices, such as external hard drives or USB drives, give you a secure place to back up your files year after year.
With the right home office tools and the right tax software, filing your taxes online can be easy—or, at least, hassle-free.
This article was drafted using AI technology and then reviewed, fact-checked, and revised by a member of our editorial team.
