The tax software market size was valued at US$ 20.95 billion in 2022 and is expected to reach US$ 46.90 billion by 2030. The tax software market is estimated to record a CAGR of 10.6% from 2022 to 2030. The rising integration of advanced technologies is likely to remain a key trend in the market.
The key players operating in the tax software market are launching software and services to save their customers' taxes. They are enabled with automation to simplify the sales tax for businesses of all sizes. For instance, in August 2023, Stripe, a financial infrastructure platform for businesses, launched Stripe Tax for platforms, enabling platforms using Stripe Connect to offer Stripe Tax as a service to their customers. Stripe Tax because it’s a logical extension of payment processing, and Stripe has built Tax for platforms so platforms can offer it to their customers and help them with all aspects of the transaction lifecycle. Such product launches are helping to boost the adoption of tax software services globally. In May 2023, the intelligent sales tax solution CereTax, Inc. released a new user interface to simplify the sales tax automation process. Users can manage and automate their sales tax operations, including tax computation, rigorous rules, and in-depth reporting, using the new site, a component of CereTax's cloud-based tax automation platform. All sizes of businesses may function effectively and without hindrance because of the interface's simplicity and usability. Such product launches are helping to boost the adoption of tax software solutions globally.
The tax software platform can be an excellent resource for many taxpayers filing their tax returns. It is designed to make the tax preparation process more efficient and help the average taxpayer understand the various nuances of tax law. The primary purpose of tax software is to automate the tax return filing process. The tax software has various features, including e-filing, a method that is more secure and reduces errors and processing time. Many tax software programs will store tax returns in the cloud for several years so businesses can access them easily during tax filing.
The ongoing digital revolution presents enormous scope for businesses—digital services and automation help to modify business models and traditional processes for improving operational efficiencies and revenues. Digital transformation or automation in businesses is characterized by the integration of digital technology in various business processes, organizational activities, and business models. The digitalization of tax systems aids in enhanced operational efficiencies, end-to-end business process optimization, and cost and human error reduction.
The tax software market has grown strongly in the past few years, and one major driving factor for this has to be digitalization in tax software systems. Owing to advanced technologies and increasing demand from businesses for streamlined and effective tax processes, the demand for digital solutions has been spiraling upward to make all activities related to taxes easier. Digitization of any tax software system has a lot of benefits associated with it for businesses of all scales and any person. One of the major advantages is the automation of all tasks related to taxation. This reduces manual effort and hence reduces the possibility of errors to a minimum. Through tax software, data entry, tax calculations, and reporting can be automated, ensuring accuracy and compliance with tax laws.
Key segments that contributed to the derivation of the tax software market analysis are product, deployment type, tax type, enterprise size, vertical, and end user.
The geographic scope of the tax software market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
North America dominated the market in 2022. The region has a mature market when it comes to the adoption of software solutions. For example, according to Employbl Inc., in August 2023, there were over 6,727 software companies across the US. A vast presence of tax software providers, such as Avalara, Sage Group Plc, Thomson Reuters Corp, and Xero Ltd, provide advanced tax software solutions to individuals and businesses to offer them efficient and errorless tax filing processes. Thus, the presence of several leading tax software providers is positively influencing the tax software market growth in North America. Short-workforce businesses are focused on adopting technologies to improve their operations and workflow rather than hiring skilled labor. They are learning to adopt artificial intelligence (AI) solutions. Thus, the growing awareness and popularity of AI solutions among individuals and professionals regarding the benefits of AI fuels the adoption of AI-based tax software solutions.
The regional trends and factors influencing the Tax Software Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Tax Software Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2022 | US$ 20.95 Billion |
| Market Size by 2030 | US$ 46.9 Billion |
| Global CAGR (2022 - 2030) | 10.6% |
| Historical Data | 2020-2021 |
| Forecast period | 2023-2030 |
| Segments Covered |
By Product
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Tax Software Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Tax Software Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The Tax Software market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the Tax Software market are listed below:
The “Tax Software Market Size and Forecast (2020–2030)” report provides a detailed analysis of the market covering below areas:
The List of Companies - Tax Software Market
The estimated value of the tax software market is expected to reach US$ 46.9 billion by 2030.
The market is expected to grow at a CAGR of 10.6% over the forecast period.
Sage Group Plc, Thomson Reuters Corp, Xero Ltd, IRIS Software Group Ltd, Wolters and Kluwer NV are among the leading players in the tax software market.
The rising integration of advanced technologies is likely to remain a key trend in the market.
The tax software market has grown strongly in the past few years, and one major driving factor for this has to be digitalization in tax software systems. Owing to advanced technologies and increasing demand from businesses for streamlined and effective tax processes, the demand for digital solutions has been spiraling upward to make all activities related to taxes easier.
North America dominated the tax software market in 2022.