Drake Tax Review
Drake Tax is professional tax preparation software for independent preparers and small accounting firms, sold as a Windows desktop program or as browser-based Drake Tax Online, with published annual prices that include all states and e-file.
Independently scored, one dimension at a time. Every dimension is sourced, and we say whether a claim is published, reported, or estimated.
Every Drake Tax package and per-return fee is on the public pricing page, including the retail prices that take effect 1 December 2026, and Drake's own add-ons carry prices on their product pages (checked 11 October 2026). All states and e-file are included, and refund deductions sit in a public policy dated 17 April 2026. The score stops short of the mid 90s because renewal pricing lives in the customer account, multi-location discounts are handled by phone, and the Pro retail price has risen from a reported $2,095 for the 2023 program to $3,295.
Every package includes free, unlimited US-based phone, email and chat support, with tax-season hours of 8 am to 10 pm Eastern on weekdays plus Saturdays (contact page, checked 9 October 2026). In the JofA 2026 survey Drake Tax took the top scores of seven products for support quality (4.2) and ease of getting it (4.3), and 56.4 percent of its users named support a top like. 17.7 percent still listed support among their dislikes, and 80.9 percent of users said they needed technical support.
Drake provides free conversion programs for 10 competitor packages, a free trial with practice returns and a download-and-install setup (conversions page and knowledge base article 10869, updated 1 October 2026). JofA 2026 respondents rated update and installation ease 4.7 of 5, and 93.4 percent would recommend Drake Tax to someone starting a practice, the highest share of seven products. The limits: conversions skip 706, 709, 990 and 1040-NR returns, and the desktop program needs Windows 11 or Windows Server on a non-ARM processor.
Drake lists 4,300+ federal and state forms and schedules across 1040, 1040-NR, 1040-SS, 709, 1120, 1120-S, 1120-H, 1065, 1041, 990 and 706 returns, with all states and city or local programs for seven states included (pricing page, checked 9 October 2026). JofA 2026 users rated in-season updates 4.7 of 5, the top score, and multistate business returns 4.2. Depth is the limit: 83.7 percent said the forms were sufficient against 92.1 percent for UltraTax CS, 16.8 percent named form count a dislike, Form 5500 is not listed, and consolidated corporate returns are combined by spreadsheet.
Drake Tax has turned multi-factor authentication on by default since Drake Tax 2021, offers group security rights that mirror its menus, can lock client files after e-file acceptance and lets a DoubleCheck review flag block e-file (knowledge base articles 15895, 10468, 12280 and 13765, checked 9 October 2026). Drake Tax Online adds role-based access and, per Drake, runs on US-based, SOC 2-compliant servers. No SOC 1 or SOC 2 report for Drake Software itself appears on its public pages, and its knowledge base describes no field-level change log. Drake Audit Defense, launched 17 July 2026, is a paid post-filing service that Drake states is not insurance.
The multi-user license allows unlimited preparers and support staff, and Drake says the program networks for offices of 1 to 100 on a dedicated server (knowledge base article 11776, updated 13 April 2026). Licensing is per physical site and EFIN, so each office needs its own license, and Hub Data Sync is not yet available to multi-site firms. In the JofA 2026 survey 46.5 percent of Drake users were sole practitioners, and Drake held 7.6 percent of firms with more than 500 preparers. The desktop program is Windows-only, and Rightworks is the only hosting Drake supports.
The connected tools are mostly Drake's own (Portals, Workflow, E-Sign, Pay and Accounting) plus partners GruntWorx, TheTaxBook and Rightworks. Imports are file-based: text exports from desktop QuickBooks with QuickBooks Online unsupported, an Excel macro template for trial balances on 1065, 1120, 1120-S and 990 returns, and spreadsheets for 8949 trades and assets (knowledge base articles 12048 and 11166). In the JofA 2026 survey Drake scored 3.1 of 5 for integration, and 37.6 percent of its users named it a top dislike, the highest share of seven products.
Drake publishes no public API and no MCP server, and the official MCP registry held no Drake Software entry on 11 October 2026. In-product AI is early: SmartExtract, in beta since 13 July 2026, pulls W-2, 1098, 1099 and K-1 data into 1040 returns with a cap of 20 documents per return, and SmartReview (beta) is an assistant inside Drake Tax Online only. Drake publishes no accuracy figures and says it may change or end the SmartExtract beta at any time.
Low published prices and well-rated support for small firms; thin integrations, and the AI is still in beta.
Written by the Audit Friendly research team. No vendor edits, no sponsored placement.
Drake Tax sells a flat annual license per office that covers unlimited or capped returns, every state, federal and state e-file and US-based phone support. Its prices are public: $3,145 for unlimited individual and business returns with unlimited preparers for tax year 2026 through 30 November 2026, then $3,295 (published, checked 9 October 2026). In the Journal of Accountancy survey of 1,808 AICPA members published 1 September 2026, Drake Tax tied Lacerte for the top overall rating at 4.4 of 5, took the top support scores, and 86 percent of its users named price a top like.
The catch is reach. 46.5 percent of surveyed Drake users are sole practitioners, and 37.6 percent named integration with other software a top dislike, the highest share of the seven major products. The desktop program runs only on Windows 11 or Windows Server and does not support ARM processors. QuickBooks Online cannot feed it, consolidated corporate returns are combined by spreadsheet, and Form 5500 is not on its list. There is no public API or MCP server. The two AI features that work on return data, SmartExtract and SmartReview, are betas, and the third, Help Assistant, is a support chatbot that answers from Drake's documentation. The retail price has also risen: a 2023 forum post quoted $2,095 retail for the Pro program (reported) against $3,295 retail for the tax year 2026 multi-user license.
Before buying, get four things in writing. First, the renewal price for next year and whether the firm's PTIN count requires the multi-user version. Second, whether each office and EFIN needs its own license. Third, the refund terms: the policy dated 17 April 2026 deducts $200 once the tax-year program is released and pays nothing after a return is activated. Fourth, for Drake Tax Online, how prepaid returns are counted and that they work only for the tax year they were bought for. Ask what SmartExtract will cost after the beta.
- A sole practitioner or a 2 to 5 preparer firm filing mostly 1040s and pass-through returns that wants one flat annual price with every state included.
- A firm leaving Lacerte, UltraTax CS or ProSeries over price that can accept file-based imports and Drake's own portal, workflow and e-signature add-ons.
- A new, part-time or seasonal practice that needs pay-per-return pricing from $379.99 and phone support included in the license.
- Firms that need consolidated corporate returns, Form 5500 or heavy multi-entity automation handled inside the tax package.
- Practices built around QuickBooks Online, a third-party practice management suite or API-driven automation, since Drake Tax exchanges data by file.
- Multi-office firms that want one cloud tenant for every location: desktop licensing is per site and EFIN, and hosting costs $114 per user per month.
The jobs a tax team actually hires Drake Tax for
Jobs, mapped to how finance teams actually buy.
Run a multi-preparer office on one flat fee
Drake Tax Pro multi-user covers unlimited individual and business returns, every state and e-file for one site and EFIN. The tax year 2026 price is $3,145 through 30 November 2026 and $3,295 after (published). Support staff without a PTIN do not count as users.
Start or keep a low-volume practice on pay-per-return
The Pay-Per-Return package costs $379.99 with 10 individual returns, then $49.99 per individual and $74.99 per business return (published). At about 40 individual returns the bill matches the 150-return Drake Tax 1040 package at its $1,895 early price, an Audit Friendly estimate. Returns can be bought only online and are redeemed one at a time.
Move off Lacerte, UltraTax CS or ProSeries between seasons
Drake's conversion programs bring over prior-year 1040, 1041, 1065, 1120 and 1120-S data from ATX, Lacerte, ProSeries, ProSystem fx, TaxAct, TaxWise and UltraTax, and 1040 data from CrossLink, TaxSlayer Pro and TurboTax. There is no charge. Returns for 706, 709, 990 and 1040-NR are re-entered by hand.
Prepare multistate individual and pass-through returns
All state programs come with every package, with no per-state module fees, and K-1 data exports from 1065, 1120-S and 1041 returns into the owners' 1040s. Users in the 2026 Journal of Accountancy survey rated Drake Tax 4.2 of 5 for multistate business returns and 4.8 for e-file ease, the top e-file score of seven products (reported).
Cut W-2 and 1099 keying with SmartExtract
SmartExtract reads uploaded PDFs or images of W-2s, 1098s, eight 1099 types and partnership K-1s, or pulls them from Drake Portals, and shows the extracted fields beside the source for review. It is free during the beta and works on 1040 returns in Drake Tax 2025 and Drake Tax Online. Drake publishes no accuracy rate and tells preparers to verify every field.
Prepare from a Mac or a remote office on Drake Tax Online
Drake Tax Online runs in a browser on the same tax engine as the desktop program and supports 1040, 1120, 1120-S, 1065, 1041, 990 and 706 returns for tax year 2025 onward. The catch for a Mac office: Drake says the tax year 2025 software needs its desktop data-entry mode, a Windows program, for 1120, 1041, 990 and 706 returns, which leaves 1040, 1065 and 1120-S as the fully online types (checked 11 October 2026). Organizers, proformas, Drake Documents and signature pads are not available online.
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Compare on what matters
What it actually costs
Here's what it really costs: published rates where a vendor lists them, aggregated quote data where they don't, plus a path to your own number.
Unlimited individual and business returns for unlimited preparers at one site, with all states and e-file included.
The same package for a firm with one preparer who holds a PTIN; support staff are not counted.
250 individual and business returns in any mix, multi-user. Extra returns cost $49.99 individual and $74.99 business.
Unlimited individual returns for unlimited preparers. Business returns cost $74.99 each.
Unlimited individual returns for one preparer. Business returns cost $74.99 each.
150 individual returns, multi-user. Extra individual returns cost $49.99 and business returns $74.99 each.
10 individual returns included, multi-user. Extra individual returns cost $49.99 and business returns $74.99 each.
Browser-based preparation with no returns included. Returns cost $49.99 individual and $74.99 business, or less when prepaid.
Each additional user on a Drake Tax Online account. The refund policy treats these fees as non-refundable.
Individual returns at $42.49 each for 25 or more and $26.49 each for 50 or more; business returns at $63.74 each for 25 or more. Larger volumes are quoted.
Drake Portals with 25 GB, Drake Workflow, 200 basic and 50 KBA e-signatures. For Pro 250, 1040 150 or Drake Tax Online with 25 to 249 prepaid returns.
Drake Portals with 50 GB, Drake Workflow, unlimited basic and 100 KBA e-signatures. For unlimited packages or Drake Tax Online with 250 or more prepaid returns.
What it actually takes to go live
A TheTaxBook forum post dated 20 April 2023 quoted Drake's renewal page at $2,095 retail for the 2023 Drake Tax Pro program with unlimited returns (reported). Drake's pricing page listed $3,295 retail for the tax year 2026 Pro multi-user license on 9 October 2026 (published). That is about 57 percent higher, an Audit Friendly estimate that ignores early-renewal discounts in both years. Drake split the package into single-user and multi-user versions starting with Drake Tax 2024, and the single-user version is $2,845 retail. Even so, only 10.6 percent of Drake users named price a top dislike in the 2026 Journal of Accountancy survey.
In the Journal of Accountancy survey published 1 September 2026, 37.6 percent of Drake Tax users named integration a top dislike, the highest share among the seven major products; only 0.8 percent named it a top like, and the integration rating was 3.1 of 5. The QuickBooks import reads a text file exported from desktop QuickBooks, and Drake's knowledge base says the process is not available with the online version of QuickBooks (article 12048, updated 24 March 2026). Trial balance import runs through an Excel template that needs macros enabled and covers 1065, 1120, 1120-S and 990 returns. Drake documents no public API, so tools from other vendors connect by file or by their own workarounds.
Drake's system requirements (knowledge base article 11776, updated 13 April 2026) list Windows 11 and Windows Server 2019 to 2025 and state that ARM-based processors are not supported, which rules out Snapdragon Surface devices and Apple silicon Macs even under virtual Windows. Windows 10 support ended after Drake Tax 2024. Drake supports cloud hosting only through Rightworks, at $114 per user per month for 1 to 9 users, and offers no troubleshooting for AWS, Hyper-V, VMware or Parallels setups. Sharing data files through OneDrive, Google Drive or Dropbox is also unsupported. Drake Tax Online runs in any browser, but its tax year 2025 software still needs the Windows data-entry module for 1120, 1041, 990 and 706 returns, and it lacks organizers, proformas, Drake Documents and signature pads.
For a consolidated Form 1120, Drake's knowledge base says to complete a return for each subsidiary, combine the figures in a spreadsheet and build the parent return from that (article 10815, updated 5 December 2024). A Drake blog post dated 1 July 2026 says support for consolidated returns is planned for Drake Tax Online in fall 2026; the knowledge base article was unchanged on 11 October 2026. Form 5500 does not appear in Drake's list of return types, while Thomson Reuters lists it for UltraTax CS. Drake's conversion programs do not bring over 706, 709, 990 or 1040-NR returns from any prior package. In the 2026 Journal of Accountancy survey, 16.8 percent of Drake users named the number of forms a top dislike, against 3.8 percent for UltraTax CS.
In Drake Tax Online a return is deducted from the balance when it is e-filed or when a PDF is created without the Draft watermark, and deleting the return does not restore it (knowledge base article 18938, updated 4 August 2026). Returns are tied to one tax year and do not roll forward, though Drake says unused tax year 2025 returns can still be used for tax year 2025 filings until 31 December 2028 while the license is active. Practice Essentials and Drake Workflow renew automatically each year, and Drake states they cannot be canceled, modified or refunded during the term. Desktop refunds end once any return has been activated, prepared or e-filed, and carry a $200 deduction ($50 for pay-per-return) after the tax-year program is released (refund policy last updated 17 April 2026).
SmartExtract works on 1040 returns only, supports a fixed list of forms (W-2, 1098, eight 1099 types and Schedule K-1 from Form 1065) and caps each return at 20 documents of up to 5 MB each (knowledge base article 19022, updated 18 September 2026). Drake warns that extracted data may be incomplete, duplicated or wrongly mapped, and says pricing, eligibility and availability may change at any time. SmartReview is offered only in Drake Tax Online. Drake's terms of service, updated 1 July 2026, say information given to its AI tools may be used to train Drake's own instance and will not be used to train third-party large language models. Firms that want staff-verified scan and populate still buy GruntWorx, which charges for every client submission.
Scored on what an outside agent can actually reach: the documented API, how it authenticates, and whether the vendor ships an MCP server.
Exists: No. Drake publishes no MCP server and no public API for Drake Tax or Drake Tax Online. Searches of the official MCP registry for drake, drake tax, drakesoftware and taxwell returned no Drake Software entry on 9 October 2026, and neither drakesoftware.com nor its knowledge base carries a developer portal or API reference. Sister company TaxAct lists a consumer filing-guidance MCP in the registry (published 6 May 2026); it does not reach Drake Tax returns.
Scope: None for return data. Information moves by file: text exports from desktop QuickBooks, an Excel trial balance template, spreadsheets for 8949 trades and assets, GruntWorx import files and Drake backups. Third parties work around the gap. Grove publishes a third-party MCP that imports Drake backup files into Grove's own platform, and Juno, an AI tax prep vendor, says it pushes prepared data directly into Drake. Neither is a Drake product, and Drake's public pages describe no write interface for them.
Turnkey: Not applicable. Any agent work today runs on what a preparer exports: PDF returns from the Drake PDF printer, report exports and Excel worksheets. Drake's website terms, last updated 1 July 2026, also prohibit obtaining information by means Drake has not intentionally made available, so scripted access to its web properties is a contract risk.
In-product AI: Drake SmartExtract (beta, announced 13 July 2026) extracts W-2, 1098, 1099 and Schedule K-1 (Form 1065) data from PDFs and images into 1040 returns in Drake Tax and Drake Tax Online, with a side-by-side review screen, a cap of 20 documents per return and no charge during the beta. SmartReview (beta), in Drake Tax Online only, is an assistant that explains how amounts were calculated, guides the preparer to the screen that clears an error and can enter details for review. Help Assistant, a chatbot in Drake Tax Desktop, answers plain-language questions from Drake's documentation and can hand off to a live support agent (Drake blog, 1 July 2026). Drake Portals classifies uploaded client documents against a checklist (announced 16 February 2026). Drake says extracted data may be incomplete or wrongly mapped and must be reviewed, and it publishes no accuracy figures.
Drake Tax, kept current
Drake Tax was used by 14.3 percent of 1,808 AICPA respondents, down 2 points from 2025, and tied Lacerte for the top overall rating at 4.4 of 5. It took the top scores for support and e-file ease.
Drake announced a post-filing notice, audit and identity theft support service sold per return through the Drake interface. Its site says Tax Protection Plus support ends 15 November 2026.
Drake announced AI document extraction for Drake Tax Online, free during the beta, with desktop support to follow. Its knowledge base documented the desktop version by 18 September 2026.
Drake announced automatic identification and sorting of client-uploaded tax documents, improved client checklists and a link to Drake Workflow.
Drake announced a browser-based version of its tax software, available for the following filing season, starting at $299 for the first user with returns bought separately.
Drake announced return status tracking and task routing across Drake Tax, Portals, E-Sign, Pay and Drake Tax Online. It now sells for $299.99 a year.
Drake Tax FAQ
A firm with two or more preparers that wants unlimited individual and business returns pays $3,145 for tax year 2026 if it buys by 30 November 2026, or $3,295 at retail from 1 December (published, checked 9 October 2026). A sole preparer pays $2,695, or $2,845 at retail. All states and federal and state e-file are included.
A 1040-focused practice can buy Drake Tax 1040 from $2,075 single-user and add business returns at $74.99 each. A low-volume office can start at $379.99 for 10 individual returns and pay $49.99 for each extra one. At about 40 individual returns, pay-per-return costs the same as the 150-return Drake Tax 1040 package (Audit Friendly estimate).
Budget for add-ons separately: Practice Essentials (portal, workflow and e-signatures) at $599 or $849 a year, Rightworks hosting at $114 per user per month if the firm wants the desktop program in the cloud, and GruntWorx or TheTaxBook if it uses them.
Drake Tax is an annual license for one tax year; Drake offers no monthly plan. Under the refund policy last updated 17 April 2026, a firm gets a full refund if it cancels before the tax-year program is first released. After release, and only if no return has been activated, prepared or e-filed, a written request by 31 December 2026 returns the fee less $200 for desktop packages, less $50 for pay-per-return, or less 10 percent for Drake Tax Online. After that date the window is three business days from payment.
Add-ons are stricter. Drake states that Practice Essentials and Drake Workflow renew automatically each year and cannot be canceled, modified or refunded during the term. Drake Tax Online returns are tied to one tax year and are not refunded once redeemed.
Getting data out of the desktop program is simple because client files, backups and PDF copies sit on the firm's own disk or server. Prior-year programs back to 2019 remain downloadable, though Drake supports and updates only 2023 and later (checked 9 October 2026). Intuit's ProSeries conversion page lists Drake as a source for 1040, 1065, 1120 and 1120-S data, so a later move to another package is a known path.
Most firms do it themselves with phone help from Drake. Drake publishes the steps (user accounts, EFIN confirmation, install, firm and preparer setup, conversion) but no timeline; one to three weeks of part-time work is an Audit Friendly estimate. Drake Tax Online skips the install.
Conversion is free and self-service for most prior packages; TurboTax files are sent to Drake, which converts the current processing year and two prior years. Returns for 706, 709, 990 and 1040-NR are re-entered. In the 2026 Journal of Accountancy survey, Drake users rated update and installation ease 4.7 of 5, and 48.1 percent received training, which they rated 4.4, the top training score of seven products (reported).
No. Drake publishes no public API and no MCP server for Drake Tax or Drake Tax Online, and the official MCP registry listed no Drake Software entry on 9 October 2026. An agent cannot open a return, enter data or e-file.
What works today is file-based. Claude can read exported PDF returns, reports and client documents and draft review notes, document requests and letters, or fill the Excel trial balance template that a preparer then imports. Third-party tools fill part of the gap: Grove offers an MCP that imports Drake backups into its own platform, and Juno says it pushes prepared data into Drake. Inside the product, Drake's own AI features are SmartExtract and SmartReview, both in beta, and Help Assistant, a support chatbot in Drake Tax Desktop that answers from Drake's documentation.
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