Every January, every finance website publishes the same article: "Best Tax Software 2026." Every one of them ranks TurboTax, TaxAct, and a few others. None of them tell you what they earn when you click.
We will. Here's the affiliate money behind tax season — and what "free filing" actually costs you.
The Commission Table
What tax software companies pay affiliates per sale (live program terms, October 2026):
| Program | Payout | Cookie |
|---|---|---|
| LibertyTax | 35% per sale + $1 per lead | n/a |
| E-file.com | 30% per sale | 120-day |
| TurboTax | ~15% per sale | 7-day / 30-day |
| TaxAct | 10% per sale | 45-day |
Read that again: LibertyTax pays affiliates 35% of every sale. More than a third of what you pay goes to the website that referred you.
The 35% Question
Why does LibertyTax pay 35% while TurboTax pays 15%?
Market position. TurboTax dominates — roughly 40%+ of the consumer tax software market (we estimate, based on Intuit's reported filer numbers vs. IRS totals). They don't need affiliates as desperately. Their 15% is a volume play: millions of referrals × 15% × $80 average sale.
LibertyTax is the challenger. They pay 35% because they need the distribution. Every affiliate dollar buys shelf space on "best of" lists that TurboTax owns by default.
What this means for rankings: a site that ranks LibertyTax #1 and TurboTax #3 isn't necessarily wrong — but they're earning 2.3x more from the #1 pick. You'll never see that disclosed in the article.
The Cookie Wars
Look at the cookie lengths: E-file.com gives 120 days. TurboTax gives 7 days (web referral).
The cookie is the attribution window — how long after your click the site gets credit for your purchase. A 120-day cookie means: click in January, buy in April, the site still gets paid. A 7-day cookie means: click now, buy now, or the credit evaporates.
Why TurboTax can afford a 7-day cookie: brand dominance. You'll buy TurboTax anyway; the affiliate just needs to be the last click. Short cookie, still massive volume.
Why E-file.com offers 120 days: they're buying patience. They know you'll comparison-shop, and they want the affiliate to keep the credit through your entire decision.
The "Free Filing" Funnel
Here's the business model behind every "free" tax product:
Step 1: Advertise free. "Free federal filing!" gets you in the door. The IRS Free File program technically covers ~70% of taxpayers, but only a small fraction use it (we estimate low single digits based on IRS participation reports).
Step 2: Upsell the state return. Federal free, state $30–$45. This is where most "free" filers start paying.
Step 3: Upsell the complexity. Got investments? Rental income? Self-employment? That's Deluxe/Premium/Self-Employed tier: $60–$120.
Step 4: Upsell the extras. Audit defense ($45). Live expert help ($50+). Refund advance (free, but locks you in).
The average "free" filer who actually files free: a minority. Industry analyses have repeatedly found that most users who start on free tiers upgrade at least once during the process.
The affiliate angle: the site earns 10–35% of whatever you end up paying — including every upsell. A $0 free filer earns the site $0. A $120 Deluxe + state filer earns the site $12–$42. Guess which outcome the "best tax software" article is optimized for?
The January–April Content Gold Rush
Tax content is the most seasonal play in finance publishing:
- January: "Best tax software" articles go live. Search volume starts climbing.
- February–March: peak. "TurboTax vs TaxAct" comparisons spike. Every click is worth potential 10–35% commissions.
- April 15: cliff. Volume dies overnight.
- October: extension deadline brings a mini-surge.
Publishers spend 3 months earning a year's worth of tax affiliate revenue in 90 days. That's why the articles are so aggressive, so long, and so uniformly positive — there's no time for nuance when the window is this short.
What You Actually Need
Cut through the affiliate noise:
Simple return (W-2 only, standard deduction): file genuinely free. The IRS Free File program or FreeTaxUSA's free tier handles this. Don't let anyone upsell you.
Moderate complexity (investments, HSA, itemizing): you need a paid tier, but compare: TaxAct at 10% commission incentive vs. TurboTax at 15% — the site prefers TurboTax, but TaxAct is often $20–$30 cheaper for equivalent features. The cheaper product with the lower affiliate payout is frequently the better deal for you. Funny how that works.
Self-employed / rental / complex: this is where paid software earns its keep. But consider: a local CPA charges $200–$400 and finds deductions software misses. If your situation is genuinely complex, human beats algorithm.
The Disclosure Test
Next January, read any "best tax software" article and ask:
- Does it disclose the affiliate commission rate? (No.)
- Does the #1 pick have the highest commission? (Check: LibertyTax 35% vs. TurboTax 15%. If LibertyTax is #1 everywhere, you know why.)
- Does it mention IRS Free File? (Often buried or absent — there's no commission in free.)
We participate in these programs too. The difference: you now know the rates.
Bottom Line
35%. 30%. 15%. 10%. That's what tax software companies pay for your click — and it shapes every ranking you read from January to April.
File free if you can. Compare on price if you can't. And remember: the site that recommended your $120 tax package just earned $18–$42 from your purchase. That doesn't make the recommendation wrong. It makes you informed.
Payout figures from CJ Affiliate program terms, October 2026. Market share and filer behavior figures are our estimates. Financialist.com participates in these affiliate programs.