How Much Does E-File Cost for State Tax Returns?
Understand the costs of e-filing your state tax return, including pricing factors, potential additional fees, and available payment options.
Filing state taxes electronically is convenient but often comes with costs. Many assume e-filing is free, only to find fees that vary based on several factors. Understanding these costs helps you choose the most cost-effective method.
While some providers offer free federal filing, state returns typically require a separate payment. The cost depends on the tax software, the complexity of your return, and any extra services you choose.
E-Filing Fees
The price of e-filing a state tax return varies by provider. Platforms like TurboTax, H&R Block, and TaxAct often offer free federal filing, but state returns usually cost between $14.99 and $59.99 per state, depending on the software version. Some providers bundle federal and state filing at a discount, but free state filing is rare.
A few states, including California and New York, offer free e-filing programs, but eligibility is typically restricted by income or filing status. If you don’t qualify, you’ll likely need commercial tax software, which may charge a flat or tiered fee based on service level.
Price Variation by Filing Complexity
Costs increase with tax complexity. A simple return with W-2 income and the standard deduction is generally the least expensive.
Self-employed individuals, freelancers, and small business owners pay more due to additional tax forms. Income reported on a 1099-NEC or 1099-K often requires a Schedule C to report business earnings and expenses, which typically necessitates a higher-tier software package.
Taxpayers who itemize deductions, such as mortgage interest or medical expenses, often need a more expensive version. Investors with capital gains, rental income, or cryptocurrency transactions face higher fees as well. Reporting stock sales, real estate transactions, or crypto trades on Schedule D may require extra calculations, and some software providers charge for importing brokerage statements or handling wash sales.
Additional Charges
Beyond the base fee, extra costs arise depending on the services used. Many tax software providers offer optional features that increase the total price.
TurboTax’s “Live Assisted” service, which provides access to a tax professional, costs more than the standard version. H&R Block and TaxAct also offer one-on-one consultations, which can be useful for complex returns but add to the expense.
Some providers charge for accessing prior-year tax returns or amending a return. If you need to correct an error or add missing information, an amended state return often requires an additional payment, even if the federal amendment is free. TaxSlayer, for example, charges a separate fee for amended filings, and other platforms may require an upgrade to make changes.
If you need to file multiple state returns—such as when living in one state but working in another—each state typically requires a separate payment, which can add up quickly.
Payment Options
Most providers offer multiple ways to pay for state e-filing fees. The most common method is paying with a debit or credit card at the time of filing, though some providers charge a processing fee of 1.5% to 3%.
To avoid this fee, direct bank transfers are usually free and ensure immediate payment.
Some providers allow you to deduct the e-filing fee from your state tax refund through a “Pay with Refund” option. While this delays out-of-pocket costs, it typically comes with an additional service charge of $20 to $40, making it more expensive than paying upfront.