Tax Software (Global Market)

Chronicle

2024: The volume of the global tax software market for the year reached $17.92 billion

In 2024, costs in the global tax management software market amounted to $17.92 billion. More than a third of this amount fell on the North American region. Such data are provided in a Fortune Business Insights study, the results of which were released on April 1, 2025.

Tax software helps financial institutions and enterprises in various fields analyze huge amounts of data collected during transactions. This allows you to more effectively monitor financial activities, submit tax returns in a timely manner and avoid possible penalties from regulators. Specialized tax programs provide a number of important benefits:

• Automation of the process - the software automatically generates and sends electronic reports to regulatory authorities, which simplifies the submission of documents and reduces the likelihood of human error;
• Availability of up-to-date forms of documents - companies are able to always provide reports in accordance with the requirements of tax authorities;
• Identification of possible errors - the software monitors inaccuracies when filling out documents;
• The ability to keep records of several organizations or individual entrepreneurs in one program.

One of the market drivers was the COVID-19 pandemic, which provoked a surge in e-commerce. This led to a sharp increase in the use of digital financial services, which created an additional need for tax management software. Changes in tax legislation have an impact on the industry. Specialized software tools make it possible to form documents in accordance with regulatory requirements and comply with the deadlines for submitting tax returns with minimal manual operations.

The market expansion is facilitated by the introduction of artificial intelligence and machine learning. AI tools are able to analyze huge amounts of financial information at high speed, increasing the accuracy of tax calculations and automating complex routine tasks. As a result, the burden on employees of companies is reduced.

The authors of the study call issues related to the confidentiality and protection of personal data a deterrent. Once in the hands of attackers, tax information can be used to organize various fraudulent schemes aimed at stealing money.

According to the deployment model, the market is divided into local and cloud segments. The first occupies the largest share, as it allows organizations and financial firms to gain full control over information and tax operations. From the point of view of end users, BFSI (banking, financial services and insurance), IT and telecommunications, healthcare, retail, production, power and utilities, hospitality, etc. In 2024, the most significant contribution was provided by the BFSI sector - approximately 24%. From a geographical point of view, North America leads, where costs amounted to $6.31 billion. Globally, significant players are:

• Avalara;
• Thomson Reuters Corporation;
• Wolters Kluwer N.V.;
• Intuit;
• Vertex;
• SAP SE;
• HRB Digital;
• TaxSlayer;
• Sailotech Pvt Ltd.;
• Sovos Compliance.

In 2025, expenses in the field of tax software worldwide are expected to amount to $20.26 billion. Fortune Business Insights analysts believe that in the future, the CAGR will be at the level of 12.8%. As a result, by 2032, costs could increase to $47.21 billion.^[1]

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