TurboTax vs Free Filing: What's the Real Cost at Your Salary?
Does TurboTax save you more than it costs? For many W-2 employees with simple returns, free IRS options cover the basics — but the breakeven depends on your salary, state, and return complexity.
Engine-computed take-home vs TurboTax cost
Table uses Illinois (4.95% flat rate) as a national median-rate proxy. All figures from ExactTakeHome's 2026 engine — single filer, biweekly, standard deduction.
| Gross salary | Federal tax | FICA | State tax (IL) | Net take-home | TurboTax Deluxe + state | Cost as % of net |
|---|---|---|---|---|---|---|
| $50,000 | $3,820 | $3,825 | $2,475 | $39,880 | $118 | 0.3% |
| $75,000 | $7,670 | $5,738 | $3,713 | $57,880 | $118 | 0.2% |
| $100,000 | $13,170 | $7,650 | $4,950 | $74,230 | $118 | 0.2% |
| $150,000 | $24,734 | $11,475 | $7,425 | $106,366 | $118 | 0.1% |
Prices as of 2026 tax season — verify at TurboTax.com. TurboTax Deluxe ~$69 + state ~ $49 per return.
Who benefits from paid filing software?
- W-2 only, standard deduction: Free IRS Free File or state DOR tools may be sufficient.
- Investments, rentals, or side income: TurboTax Deluxe or Premier adds guided Schedule D, E, and import features that reduce manual error risk.
- Self-employment: Schedule C, quarterly estimates, and expense categorization justify paid tiers for most filers.
Calculate your exact take-home before tax season
Frequently Asked Questions
For a single W-2 filer with no investments or self-employment, IRS Free File or Direct File often covers a straightforward return. At $50,000, engine-computed net take-home in Illinois (median-rate proxy) is $39,880 — TurboTax Deluxe plus state ($118) equals about 0.3% of that net pay.
IRS Free File partners typically serve adjusted gross incomes at or below a published threshold (check IRS.gov each season). State returns may still require a separate free or low-cost option from your state DOR.
TurboTax may surface credits and deductions through guided interviews, but the dollar value depends on your situation. ExactTakeHome models paycheck withholding — not year-end return optimization.
Investment income, rental property, self-employment (Schedule C), stock sales, and multi-state returns increase complexity where guided software can reduce error risk.
Calculated using ExactTakeHome's 2026 tax engine for a single filer in Illinois (flat 4.95% state rate used as a national median proxy), biweekly pay, standard deduction, no pre-tax deductions.