Drake Tax

by Drake Software  · Based in United States → — Professional tax software built for the way tax pros work.
Family Medicine General Surgery Internal Medicine
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Starts at $349 for 10 returns (pay-per-return) or $1795 for unlimited 1040 individual returns annually.
Documentation ProvidedRegulatory Status Disclosed

Overview

Drake Tax is a comprehensive professional tax preparation software designed to streamline workflows for tax preparers, including those serving physicians. It offers efficient, IRS-compliant solutions to manage various tax scenarios, ensuring accuracy and saving time. The software is recognized for its fast calculation results, hundreds of accuracy checks, and customizable program options, making it suitable for a wide range of tax practices from solo preparers to multi-site businesses.

Beyond core tax preparation, Drake Tax provides a suite of add-on productivity tools. These include Drake Workflow for enhanced practice management, Drake Portals for secure client communication and document exchange, Drake E-Sign for electronic signature capabilities, and Drake Pay for integrated payment processing. These features are particularly beneficial for physicians who require secure, efficient, and compliant handling of their financial and tax documentation.

The platform emphasizes award-winning customer service, offering expert support for quick and friendly assistance. Its simple, flat-rate pricing structure is designed to be transparent and supportive of tax professionals’ needs. For physicians seeking a reliable and efficient way to manage their tax obligations through a professional tax preparer, Drake Tax offers a robust solution that integrates essential tools for modern practice management.

Reviewed by Pouyan Golshani, MD — Interventional Radiologist

Key Features

  • Fast calculation results
  • Hundreds of accuracy checks
  • Customizable program options
  • Drake Workflow (add-on)
  • Drake Portals (add-on)
  • Drake E-Sign (add-on)
  • Drake Pay (add-on)
  • Award-winning customer service
  • Simple, flat-rate pricing
  • IRS-compliant solutions

Use Cases

  • Professional tax preparation for individuals and businesses
  • Streamlining tax preparer workflows
  • Secure client document exchange and communication
  • Electronic signature collection for tax forms
  • Integrated payment processing for tax services
  • Managing tax practice operations

What Physicians Need to Know

Voice Input
Drake Tax offers a paid service called ABCvoice, which allows clients to call a toll-free number and get their return and refund check status via an automated voice system. This is for client inquiries about tax return status, not for physicians to input data or commands via voice.
File Uploads (types & size limits)
Drake Portals, integrated with Drake Tax, allows for secure file sharing. Supported file types for upload include Word (.doc and .docx), Excel (.xls and .xlsx), PDF (.pdf) documents, and image files (.jpg, .jpeg, .png). Clients can upload scanned tax documents or photos of documents. While there isn't a stated individual file size limit for general uploads, administrators are responsible for managing excessive or large files to avoid storage issues. For email attachments via Gmail, the combined total cannot exceed 25 MB; larger files will require external emailing as Drake does not support Google Drive integration for this purpose.
Image Generation Capabilities
Drake Tax does not have image generation capabilities. It allows for the import of image files (.bmp, .gif, .jpg, .png) for e-signatures and custom logos, with specific size guidelines for logos (max 100 KB, 290 x 75 px suggested).
Web Search (real-time or limited?)
Drake Tax includes a 'Custom Web Tax Search' feature that allows users to search for tax research information on pre-selected or user-added websites like IRS.gov, drakesoftware.com, and taxingsubjects.com. This is a limited web search focused on tax-related resources, not a general real-time web search.
Confabulation/Hallucination Risk Level
While Drake Tax itself is not a generative AI and therefore doesn't 'hallucinate' in the same way large language models do, the use of AI in tax and accounting generally carries a risk of generating plausible-sounding but incorrect information. Tax professionals remain accountable for AI-generated errors. Drake Software acknowledges the early stages of generative AI and advises caution and understanding of its limitations.
Desktop & Mobile Apps
Drake Tax offers both a Desktop version (Windows-based) and a cloud-based 'Drake Tax Online' version. Drake Tax Online is accessible from any internet-enabled device, including laptops, mobile phones, and tablets, and supports various operating systems. Drake Portals also has a phone app for taxpayers.
Third-Party Integrations
Drake Tax integrates with several third-party applications to enhance its functionality, particularly for tax preparation and practice management. Key integrations include: QuickBooks (for automating data entry and importing financial data), SecureFilePro (for secure document sharing), SmartVault (for document storage and file sharing), eFileCabinet (for document management and organization), Soraban (for intelligent tax workflow automation, client data intake, and document collection), Rightworks and Cloudwalks (for cloud hosting of QuickBooks and Drake Tax), and TaxDome (for practice management, document automation, secure client communication, e-signatures, and payments).
Prompt Engineering Tips
While Drake Tax itself doesn't use 'prompts' in the generative AI sense, the concept of clear and specific input is relevant for its search functions and macros. For instance, the 'Selector Field' allows searching for codes, form numbers, data entry menu tabs, or keywords. For general AI tools in accounting, prompt engineering tips emphasize clarity, specificity, context, defining roles, and iterative refinement to avoid generic or incorrect responses.
Data Privacy for Physicians
Drake Software's Privacy Notice outlines its practices for collecting, processing, and disclosing personal information, including identifiers like name, address, email, SSN, and financial information. This information is used to prepare tax returns, provide requested services, and as required by law. Drake Software emphasizes protecting taxpayer information and complies with IRS requirements for passwords and multi-factor authentication. They recommend using Drake Portals for secure exchange of sensitive data rather than email. Tax professionals have a legal requirement under federal law to protect taxpayer information, including adherence to the Gramm-Leach-Bliley Act and FTC's Privacy and Safeguards Rules.
Physician Tip

As Drake Tax is specialized tax preparation software, its direct utility for physicians in non-clinical tasks is limited to managing their practice's tax obligations. Physicians should leverage its secure document portals for sharing financial and tax-related documents with their tax preparers. For general non-clinical AI assistance (e.g., scheduling, patient communication), physicians should explore dedicated healthcare AI solutions, as Drake Tax is not designed for these purposes. When using any AI tool, always verify information, especially concerning financial or medical advice, as AI can 'hallucinate' or provide incorrect data.

Drake Tax's integrations are primarily focused on enhancing tax preparation and accounting workflows. Physicians looking for broader administrative support should note that integrations like QuickBooks and secure client portals (SecureFilePro, SmartVault, TaxDome) can assist with financial record-keeping and secure document exchange related to their practice's finances. However, these integrations do not extend to clinical or general administrative tasks outside of the tax and accounting domain.

Details

Category General Productivity (AI Assistants), Physician Finance & Tax, Practice Management & Scheduling
Pricing Starts at $349 for 10 returns (pay-per-return) or $1795 for unlimited 1040 individual returns annually.
  • Drake Tax offers several pricing plans: Pay-Per-Return (PPR) starts at $349 for up to 10 returns, with additional returns costing $42.99 each
  • The 1040 Individual Return Unlimited plan starts from $1795 to $1995 per year
  • The Pro Bundle Plan, which includes multiple users and full-service access to accounting and taxation, ranges from $2195 to $2495 per year
  • Cloud hosting through partners like Sagenext starts at $59 per user per month, and Rightworks starts at $104 per user per month
  • Add-ons like Drake Planner and Drake Portals may be charged separately or included in packages
  • Drake Tax Pro, a multi-user license for unlimited returns across all entity types, costs $2695/year
  • Drake Tax Online has in-app purchases for additional users ($99 each), individual returns ($49.99 each, with bulk discounts), and business returns ($74.99 each, with bulk discounts)
Free TrialUnknown
DeploymentDesktop (Windows-based installation), Cloud-based hosting through partners, and web-based (Drake Tax Online)
Mobile AppYes, Drake Software offers mobile applications for iOS and Android devices. The mobile app allows users to check e-file status, review e-file summary data, and check the status of Drake's processing services. Drake Portals also has a SecureFilePro® mobile app for clients to securely share, sign, and manage documents.
Data ExportUnknown
LanguagesEnglish
TrainingUnknown
Target SizeSolo practitioners to multi-site tax preparation businesses and mid-sized accounting firms.
Compliance
BAA AvailableUnknown AI-estimated
HIPAA CompliantUnknown AI-estimated
FDA Status N/a AI-estimated — N/A
SOC 2Unknown AI-estimated
GDPRUnknown AI-estimated
Integrations
EHR Not specified
Specialties Family Medicine, General Surgery, Internal Medicine

Social Proof

CustomersOver 70,000 tax professionals nationwide.
Notable
unknown

Support & Reliability

Training ProvidedUnknown

What the Web Says

Drake Tax is a comprehensive tax preparation software widely used by tax professionals, particularly small businesses and sole practitioners. It is generally praised for its affordability, robust features, and excellent customer service. While it handles most returns efficiently, some users note a learning curve and occasional clunkiness with complex or multi-state returns.

Overall: Positive

Strengths

  • Affordable pricing and good value for money, especially for small firms and individual practitioners.
  • Excellent and responsive customer support, often with direct human interaction.
  • Comprehensive features and all-in-one solution for tax preparation and filing.
  • User-friendly interface and easy to learn for many, with an interface similar to actual tax forms.
  • Reliable and accurate with built-in diagnostics and data validation.
  • Good integrations with other tools like Gruntworx and TaxDome.

Limitations

  • Can be clunky and has a steeper learning curve for some users, especially those new to tax software or complex returns.
  • Occasional issues with software updates requiring logouts and causing disruptions.
  • Some functionality is considered clunky, with fields that don't auto-populate and a cumbersome view/print process.
  • Less polished interface compared to more expensive alternatives like UltraTax or ProSystem.
  • Challenges with complex multi-state returns and certain foreign forms.
  • Built-in Customer Relationship Manager (CRM) may not be robust enough for some practices.

Based on reviews from: Software Advice, G2, Capterra, Reddit, Gartner Peer Insights, CRM.org, The Fino Partners, Verito

Last updated: 2026-10-05

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Press & Coverage

Drake Software Blog
New in Drake Tax Online: Meet Drake SmartExtract (Beta)
Drake Software introduced Drake SmartExtract (Beta), an AI-powered feature for Drake Tax Online users to reduce manual data entry and speed up tax return preparation. This feature, available at no additional cost during the beta period, extracts information from supported tax documents and populates it into the tax return.
2026-07
Drake Software Press Release
Drake Software Expands AI Innovation with Beta Launch of Drake SmartExtractu2122
Drake Software announced the beta launch of Drake SmartExtractu2122, an AI-powered document processing solution for Drake Tax Online that automates data extraction from tax documents, aiming to enhance efficiency for tax professionals. Support for Drake Tax Desktop is expected to roll out in the coming months.
2026-07
Drake Software Blog
What's New in Drake Tax Online: More Browser-Based Preparation and Smoother Workflows
Drake Tax Online continues to expand its browser-based preparation capabilities, focusing on native business return preparation, reducing duplicate K-1 data entry, and simplifying field verification for smoother workflows. These updates aim to help preparers save time.
2026-09
Drake Software Press Release
Drake Expands End-to-End Professional Services with Launch of Drake Audit Defenseu2122
Drake Software launched Drake Audit Defenseu2122, expanding its professional services. This announcement is part of a series of updates from Drake Software, including AI innovations and workflow enhancements.
2026-07
PR Newswire
Drake International sets direction for its Next 75
Drake International, a company with 75 years of history, is bringing all its businesses under one brand, including Drake Health & Wellbeing, to help people realize their potential in a world reshaped by AI and technology. The company emphasizes that the future needs people, with AI serving as a capability multiplier.
2026-10
Drake Star Partners
From Telemedicine to fully integrated Health Tech | Q4 2025 Report
This report highlights key industry dynamics for 2026, including the rapid scaling of AI in healthcare for physician augmentation and the increasing demand due to an aging population. The report projects significant growth in the GenAI healthcare market.
2026-02
Verito
Securing Your Accounting Firm: The Complete Guide to IT Management & Compliance
This guide addresses the technical and security challenges faced by accounting and tax professionals, including the surge in cyberattacks and the importance of specialized IT management for platforms like Drake Tax Software. It highlights the rising costs associated with data breaches in the financial sector.
2026-06
Drake Tax Knowledge Base
Drake Tax Online - Online Reports - IRS Acceptance Alert
Starting with Tax Year 2025, the IRS has expanded its use of acceptance alerts for federal returns, which provide important information regarding IRS processing updates even if a return is not rejected. These alerts may indicate situations like a dependent already being claimed.
2026-03

Videos

Product demos, reviews, and walkthroughs for Drake Tax.

View all on YouTube

Frequently Asked Questions

Drake Tax is generally considered user-friendly, with many users finding it intuitive to learn, especially for those familiar with tax software. It offers features like data import from various sources and can streamline the tax preparation process, potentially saving you time during tax season.
Drake Tax is designed to help ensure compliance by staying updated with the latest tax laws and regulations. It includes features like error checking and diagnostic tools to help identify potential issues before filing, which can contribute to minimizing audit risk.
Common alternatives to Drake Tax include UltraTax CS, Lacerte, and ProSeries, among others. Drake is often praised for its balance of features and affordability, while some alternatives may offer more advanced functionalities for larger or more complex practices, often at a higher price point.
Drake Tax typically offers various pricing models, often including per-return pricing or unlimited packages. There are usually different editions or tiers available to accommodate the needs of both solo practitioners and larger firms, with pricing varying based on the features and volume of returns.
While robust, Drake Tax, like any software, may have limitations. For highly complex medical practice structures, intricate investment portfolios, or very specialized tax situations, you might find that some advanced features or integrations present in higher-end, more expensive software could be beneficial. It's always wise to consult with a tax professional for highly specific scenarios.

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Suggest an Edit → | Last Verified: 2026-07-01 | First Added: 2026-07-01
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