so what are users using now instead of turbotax?

When taxpayers decide to ditch TurboTax, they are usually looking for one of two things: a service that is genuinely free without surprise paywalls, or a more affordable paid tier for complex tax situations.

The drop in TurboTax’s free user base is largely being absorbed by a few key competitors that have capitalized on consumer frustration with Intuit's "freemium" model. Here is where those users are going:

1. The "Truly Free" Federal Alternatives

Many users who are tired of starting a "free" return on TurboTax only to be hit with an upgrade fee for a basic deduction are moving to platforms that don't aggressively upsell.

• FreeTaxUSA: This is currently the biggest beneficiary of TurboTax defectors. It has gained massive popularity through word-of-mouth and social media (like TikTok) because it is transparent about its pricing. Federal returns are 100% free, even for complex situations like freelance income, stock sales, or real estate (which TurboTax charges a premium for). They make their money by charging a flat, modest fee (around $15 to $16) for state returns.
• Cash App Taxes: Formerly known as Credit Karma Tax, this mobile-first platform is entirely free for both federal and state returns. It doesn't offer the deep, step-by-step guidance that TurboTax does, but for younger users or those with straightforward finances, it is a highly attractive, zero-cost alternative.

2. The Traditional Arch-Rival

• H&R Block: As Intuit’s most established competitor, H&R Block captures a lot of the users who leave TurboTax but still want a highly polished, name-brand software. H&R Block’s online DIY software often undercuts TurboTax’s pricing slightly, and its "Free Online" edition actually covers a few more tax situations than TurboTax's free tier. Plus, users who get overwhelmed have the fallback of walking into a physical H&R Block storefront, something Intuit cannot offer.

3. The Budget-Friendly Paid Options

For taxpayers who need premium features (like small business support or heavy investment reporting) but are tired of paying Intuit’s top-tier prices, two mid-market options are absorbing the churn:

• TaxSlayer: Known for being a bare-bones but highly affordable alternative. Their premium tiers are significantly cheaper than TurboTax’s equivalents.
• TaxAct: While its prices have crept up in recent years, it remains a budget-friendly option for self-employed individuals and investors who want professional-grade tax calculation without the TurboTax premium.

The Bottom Line: The exodus from TurboTax isn't happening because the software is bad—it is widely considered the most user-friendly platform on the market. Users are leaving because the alternatives have closed the gap in usability, while offering far more transparent and affordable pricing models.