State Filing Costs Across Five Major Tax Apps: An Apples-to-Apples Audit

What we computed

Total filing cost (federal + state) at five tax products for 12 representative scenarios:

• Single state, simple W-2 (1040 only)
• Single state, W-2 + HSA + IRA (Schedule A or 1040 + Schedule 1)
• Single state, Schedule C self-employment
• Single state, Schedule E rental property
• Single state, K-1 partnership income
• Two states, W-2 in resident state with non-resident state work
• Two states, K-1 from partnership operating in multiple states
• Three states, complex multi-state household
• Single state, prior-year amendment
• Single state, with itemized deductions and significant SALT
• Single state, with crypto activity (Form 8949 imports)
• Single state, with ESPP and RSU income

Total scenarios x 5 products = 60 cost computations.

The summary

Average total cost per scenario, single state:

• Cash App Taxes: $0
• FreeTaxUSA: $29.98 ($14.99 federal + $14.99 state)
• TaxSlayer: $119.90 ($74.95 + $44.95)
• H&R Block Self-Employed: $128.95 ($89.95 + $39)
• TaxAct Self-Employed: $168 ($109 + $59)
• TurboTax Self-Employed: $188 ($129 + $59)

Where state filing matters most: multi-state scenarios. Each additional state typically adds the same state filing fee to the bill.

For a three-state filer:

• Cash App Taxes: not supported (single-state limitation)
• FreeTaxUSA: $59.95 ($14.99 federal + 3 × $14.99 state)
• TaxSlayer: $209.80 ($74.95 + 3 × $44.95)
• H&R Block: $206.95 ($89.95 + 3 × $39)
• TaxAct: $286 ($109 + 3 × $59)
• TurboTax: $306 ($129 + 3 × $59)

The cost spread for multi-state filers is genuinely material — $59.95 to $306, a 5x difference.

Where the marketing misleads

Several products advertise "free state filing" or "free state with simple returns." Reality:

TurboTax: "Free Edition" is free federal AND free state, but only for the simplest possible returns (W-2 only, no itemizing, no Schedule C, no Schedule E). Almost any moderate complexity moves you to a paid tier where state filing costs $59.

H&R Block: "Free Online" tier offers free state filing on simple returns. Self-Employed tier (which is what most freelancers need) charges $39/state.

TaxAct: "Free" tier offers free state on the simplest returns. Most users with any complexity end up at $59/state.

TaxSlayer: "Simply Free" offers free state on basic returns only.

FreeTaxUSA: Federal is free for almost any return. State is $14.99 regardless of complexity.

Cash App Taxes: Truly free at all complexity levels within the supported scope.

The marketing emphasizes "free" tiers that are narrow in scope. The realistic cost for moderate-complexity filers is in the paid tiers.

When the state cost matters most

Multi-state situations multiply the cost. Three states at TurboTax = $177 just in state filing fees. Three states at FreeTaxUSA = $44.97. Same data, same complexity, vastly different bill.

For users with stable single-state situations, the federal cost dominates and the state fee is a smaller component of total cost. For users with multi-state work, K-1s spanning states, or relocations during the year, state fees can equal or exceed federal fees.

When you should pay more

For multi-state situations specifically, the more expensive tools (TurboTax, H&R Block) handle the apportionment math more correctly than the cheaper alternatives (TaxSlayer, FreeTaxUSA). The cost premium is partially justified by accuracy on complex state allocations.

For users whose returns fit Cash App Taxes' single-state scope: Cash App Taxes' free state is the best deal in the market and there's no compelling reason to pay more.

For users with one straightforward state and moderate federal complexity: FreeTaxUSA is consistently the value winner.

For users with multi-state K-1s or complex source allocation: paying for TurboTax or H&R Block is defensible despite the cost.

What the providers actually charge state filers for

State filing produces a separate state return that the software has to:

• Apply state-specific tax rules
• Generate state-specific forms (each state has its own)
• Handle state credits, deductions, and adjustments
• E-file with the state taxing authority

The actual cost of providing this service is small. The $39-$59 state filing fees at major products represent margin, not direct cost recovery. FreeTaxUSA's $14.99 and Cash App Taxes' $0 are closer to the underlying cost-plus-modest-margin level.

For users comparing alternatives: the state filing fee is mostly negotiable on the provider side. Higher fees reflect pricing power, not cost structure.

The verdict

State filing fees materially affect total tax software cost. For users in single-state situations:

• Free option that works: Cash App Taxes
• Cheapest paid option: FreeTaxUSA at $29.98 total
• Best value with thorough interview: H&R Block at $128.95 total
• Cheapest brand-name: TaxSlayer at $119.90 total
• Premium pricing without proportional benefit: TurboTax at $188 total

For multi-state situations, the cost gap widens dramatically and the cheaper tools (FreeTaxUSA in particular) become significantly more attractive.

Don't let federal-only marketing distract from total cost. Compute the actual total before choosing a product. The savings often determine which tool is right for you, regardless of features.