Drake Tax Software: Features, Add-Ons, Pricing, and More
Executive Summary
- Trusted by over 64,000 tax professionals and used to process more than 33 million accepted returns annually[2].
- Flexible pricing starts at $349.99 for pay-per-return and offers unlimited user options at competitive rates[1] [3].
- Comprehensive feature set includes multi-state returns, automated data flow, and robust document management[2].
- Award-winning platform recognized by CPA Practice Advisor, AICPA, and NATP for reliability and value.
- Seamless cloud hosting with Verito delivers 99.999% uptime, daily backups, and enterprise-grade security for tax and accounting firms.
What Is Drake Tax Software?
Drake Tax Software is a professional tax practice management solution designed to help tax professionals and accounting firms efficiently prepare, file, and manage federal and state tax returns for individuals and businesses[2]. Since its introduction in 1977, Drake Tax has become a staple in the industry, known for its reliability, affordability, and comprehensive capabilities. The software is developed by Drake Software, headquartered in Franklin, NC, and is supported by a team of over 600 employees[2].
Why it matters:
Tax season brings tight deadlines, complex compliance requirements, and the need for absolute accuracy. Drake Tax Software addresses these challenges with a robust set of features and flexible deployment options, making it a top choice for firms seeking efficiency and peace of mind.
Key Features of Drake Tax Software
Drake Tax stands out for its depth and breadth of features, designed to streamline every aspect of tax preparation and client management[2] [3].
Core Features:
- Fast, accurate calculations for quick tax preparation.
- Shortcut keys and macros to speed up data entry.
- Automatic data flow from federal to state and city returns.
- Multi-state return support without extra modules or fees.
- LinkBacks for easy cross-referencing of data.
- DoubleCheck to flag, verify, or note items for review.
- Drake Documents for secure storage of tax forms and client files.
- Integrated payment processing for credit and debit cards.
- Drake Tax Planner and Quick Estimator for scenario planning.
- Amortization schedules and K-1 reporting.
- Print to PDF and organized return viewing.
- Scenario planning for complex client needs.
System Recommendations:
| Parameter | Recommendation |
|---|---|
| OS | Windows 10 Pro, 64-bit |
| RAM | At least 4GB |
| Processor | 2.0 GHz or faster |
| Hard drive space | At least 2GB (SSD recommended) |
| Internet | High-speed for optimal performance |
| Printer | Windows GDI or laser printer |
| .NET Framework | Version 4.7 or higher |
Example: A mid-sized CPA firm uses Drake Tax’s multi-state return feature to handle clients with operations in several states, saving hours of manual data entry and reducing errors.
Add-Ons and Complementary Tools
Drake Tax offers a suite of add-ons to extend its core functionality and adapt to the unique needs of each firm[2].
| Add-On | Use Case |
|---|---|
| Drake Accounting | Integrated accounting and payroll |
| Drake Portals (SecureFilePro) | Secure file exchange with clients |
| GruntWorx | Automated data entry and document organization within Drake Documents |
| E-Pay | Accept payments via credit/debit cards |
| Tax Payment Options | Flexible payment solutions for clients |
Why add-ons matter:
These tools help firms centralize their workflow, automate repetitive tasks, and maintain secure, compliant client communications.
Drake Tax Software Pricing: What Should You Expect?
Drake Tax offers several pricing models to fit the needs of solo practitioners, small firms, and large practices[1] [3].
| Package | Price (2025) | Features Included | Users |
|---|---|---|---|
| Pay-Per-Return | $349.99 (10 returns) | All features, pay as you go | Unlimited |
| 1040 Complete | $1,875–$1,995 | Unlimited individual returns | Unlimited |
| Pro Bundle | $2,345–$2,495 | Full-service tax and accounting, unlimited users | Unlimited |
- Value for money: 69% of reviewers rate Drake Tax positively for its affordability and flexibility, especially the unlimited version and pay-per-return options[3].
- Free data conversion is included with all packages, making migration straightforward[1].
Note: Pricing may vary based on promotions and the number of returns. Always check the latest rates directly with Drake Software.
Why Host Drake Tax Software in the Cloud?
While Drake Tax is a desktop application, hosting it on a dedicated cloud server unlocks new levels of flexibility, security, and performance—especially for firms with remote teams or multiple locations.
Key Benefits of Cloud Hosting:
- Access Drake Tax from anywhere — no more being tied to a single workstation.
- 99.999% uptime guarantee with Verito’s VeritSpace dedicated private server hosting.
- Daily rolling backups and 2FA for unmatched data protection.
- Seamless, secure migrations — often completed in under 72 hours.
- SOC 2 Type II compliant infrastructure to meet IRS and FTC standards.
Verito’s Advantage:
Verito specializes in hosting Drake Tax and other leading tax and accounting software on isolated, always-on servers. With VeritGuard managed IT services, you get 24/7 U.S.-based support, proactive threat monitoring, and rapid issue resolution so your team can focus on clients, not IT headaches.
Example: During peak tax season, a firm using Verito’s cloud hosting experiences zero downtime, even as user demand surges, thanks to dedicated resources and proactive IT management.
How Does Drake Tax Compare to Other Tax Software?
| Criteria | Drake Tax | Other Leading Tax Software |
|---|---|---|
| Pricing Flexibility | Pay-per-return, unlimited | Often higher base cost, fewer flexible options |
| Multi-State Returns | Included | May require add-ons |
| User Limitations | Unlimited users | Often per-user pricing |
| Cloud Hosting Support | Supported via partners | Varies, not always available |
| Compliance Standards | SOC 2, IRS, FTC ready | Varies by provider |
Best for:
- Firms seeking cost-effective, scalable tax software.
- Practices needing multi-state and multi-user support.
- Teams prioritizing secure, compliant cloud access.
Awards and Industry Recognition
Drake Tax Software is consistently recognized for its value, reliability, and user satisfaction:
- 2021 Reader’s Choice Award (CPA Practice Advisor)
- 2020 Tax Software Survey Award (AICPA/The Tax Adviser)
- 2020 Tax Software Survey Award (NATP)
- 2020 Annual Survey of NY State Practitioners (CPA Journal)
- 2021 Tax Software Survey (Journal of Accountancy and Tax Adviser)
These accolades reflect Drake Tax’s commitment to serving the evolving needs of tax professionals[2].
Frequently Asked Questions
Is Drake Tax the best tax software solution?
Drake Tax is widely regarded as one of the best options for tax professionals, thanks to its comprehensive features, flexible pricing, and strong industry reputation[2] [3].
Who uses Drake Tax software?
More than 64,000 tax professionals and firms nationwide rely on Drake Tax for their tax preparation and filing needs[2].
What is pay-per-return pricing?
This model allows you to pay only for the returns you file, making it ideal for smaller practices or those with variable workloads[1] [3].
Is Drake Tax cloud-based?
Drake Tax is a desktop application, but you can host it securely in the cloud with a provider like Verito for remote access and enhanced security.
Key Takeaways
- Drake Tax Software delivers robust, affordable tax preparation tools trusted by thousands of professionals.
- Flexible pricing and unlimited user support make it accessible for firms of all sizes.
- Cloud hosting with Verito provides unmatched uptime, security, and compliance for tax and accounting firms.
- Award-winning platform recognized for reliability, value, and user satisfaction.
Ready to experience secure, always-on Drake Tax Software hosting?
Contact Verito to schedule a demo or get started with a risk-free trial.
It just works. Securely.
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