How to File Your Own Taxes in Canada: 4 Free Tax Software Options

Tax season doesn’t have to be stressful, and with the right tools, you can confidently file your taxes from the comfort of your own home. In Canada, there are several free tax software options that make it easy for individuals to prepare and submit their tax returns. Whether you're a first-time filer or someone looking for a simple, cost-effective way to manage your taxes, these free programs can help you save money and time while ensuring you meet all of your tax obligations. This guide will show you four free tax software available to Canadians and their pros and cons for different tax purposes, so you can choose what’s best for you! (PLEASE NOTE: users should do their own research on seeing which platform is best suited for their needs as platform services might change and differ from when this blog was posted. Please consult a professional if you have specific tax questions or have unique tax circumstances.) 

TurboTax Free
TurboTax offers a free version for simple tax returns, making it a popular choice for individuals with straightforward tax situations. It guides users through the process with an easy-to-use interface.

Pros:

  • User-Friendly Interface with an easy-to-follow step-by-step guide for first-time and experienced filers
  • Provides customer support 
  • CRA NETFILE compatible so users can directly submit tax returns to the Canada Revenue Agency (CRA) 

Cons:

  • The free version only supports basic tax situations (T4 income, RRSP, and basic deductions). More complex returns (e.g., self-employed, small business) require an upgrade to a paid version.
  • The free version may prompt you to upgrade to paid versions for more advanced features.
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Small Business/Side Hustle Friendly?

  • No: The free version is not suitable for self-employed individuals or those with a small business, as it doesn’t support more complex forms like T2125 (for business income).

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SimpleTax (by Wealthsimple)
SimpleTax is a highly rated, user-friendly tax filing software that is completely free. It allows users to file federal and provincial taxes, and it supports a variety of tax scenarios, including income, deductions, and credits.

Pros:

  • Completely free to use, with no upselling, even for more complex returns.
  • Ease of Use interface 
  • Supports Various Tax Situations like self-employment income - T2125 (beside the basics like T4s, T5s, RRSPs)

Cons:

  • Limited Customer Support: While there’s a comprehensive help section, it lacks live support options.
  • Basic Features: While it’s great for most situations, advanced features or additional guidance are minimal compared to some competitors.

Small Business/Side Hustle Friendly?

  • Yes: SimpleTax is well-suited for self-employed Canadians or those with side hustles. It supports T2125 forms, making it easy to report business income and expenses.

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StudioTax
StudioTax is a free software option available for personal use, offering a simple interface and features for preparing and filing Canadian tax returns. It's available for both Windows and Mac users.

Pros:

  • Free for Personal Use
  • Offline Version Available, users can download and use StudioTax offline, which is ideal for those who prefer not to work online.
  • Supports Various Tax Forms like self-employment income (T2125) and rental income.

Cons:

  • Outdated User Interface compared to other modern platforms.
  • No live customer support, only email or forum-based support.
  • Not first-time users friendly due to the number of options and forms.

Small Business/Side Hustle Friendly?

  • Yes: StudioTax supports self-employed individuals and small business owners by allowing you to file T2125 forms and manage business expenses.


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CRA My Account
While not technically a software, the CRA’s My Account provides individuals with  access to tax returns, tax related documents that were submitted by employers and institutions. It also provides the ability to submit documents relating to any queries requested by the CRA. 

Pros:

  • Free Service
  • Easy Access to Personal Tax Information, users can track your returns, view your notice of assessment, and access other tax-related documents 

Cons:

  • Limited Support for Complex Tax Situations as it is a filing portal rather than a complete tax software.
  • No step-by-step walkthroughs or guided prompts like other tax software.

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In Summary…

  • Best for Simple Returns: TurboTax Free 
  • Best for Self-Employed/Side Hustlers: SimpleTax, StudioTax as they support the necessary forms for reporting business income and expenses. 
  • Best location to see all your tax-related documents: CRA My Account

**Options above should suit a variety of tax situations for users, especially those with straightforward tax returns. Please note that users should do their own research on seeing which platform is best suited for their needs as platform services might have changed and differ from when this blog was posted. Please consult a professional if you have specific tax questions or have unique tax circumstances.