![]() In May 2021, H&R Block’s share of sales was 21 percent, compared to 23 percent in July 2020 and 31 percent in April 2019. H&R Block is the second-most popular tax prep service, but has experienced a decreasing share of sales over the past three tax seasons. In May 2021, TurboTax’s share of sales was 73 percent, 3 percentage points higher than in July 2020 and 10 percentage points higher than in April 2019. TurboTax has the highest share of salesĪ closer look at the top industry competitors within our dataset shows that over the past three tax seasons, TurboTax has increased its share of sales. ![]() In 2021, 21 percent of sales year-to-date (as of the week of May 17) occurred the week of Tax Day and the week before. As a result, only 17 percent of annual sales for tax prep services occurred the week of and week before Tax Day 2020.Ī similar pattern occurred in 2021, with sales being generally more spread out between the IRS’ March 17 announcement of the extended tax deadline and the deadline itself on May 17. After the announcement, tax prep sales were spread out over the weeks approaching the new July deadline. However, on Mathe IRS announced that the tax deadline would be extended to mid-July in response to the pandemic. Historical data also shows that after Tax Day passes, sales for tax preparation services drop significantly, with the exception of another small spike in the fall that coincides with the tax extension deadline of October 15.įor the first few months of 2020, the tax prep industry’s sales volume followed roughly the same pattern as previous years. In 2017, 2018, and 2019, roughly 26 percent of annual sales for tax preparation services occurred during the week of or week before Tax Day, which usually takes place around April 15. In 20, fewer tax prep sales occurred the week of and before Tax Day However, TurboTax continues to lead the tax prep industry and has steadily gained market share from its competitors over the past three tax seasons. Consumer transaction data reveals that, consequently, sales for the tax prep industry were more spread out in 20 compared to previous years, resulting in smaller-than-usual sales spikes the week of and week before Tax Day. As a result of this panel change, however, we recommend using only the latest posts in assessing metrics, and do not support referring to historical blog posts to infer period-over-period comparisons.ĭue to the COVID-19 pandemic, the federal income tax deadline for individuals was extended for the past two years, to July 15 in 2020 and May 17 in 2021. ![]() Our data continues to be broadly representative of U.S. NOTE: Bloomberg Second Measure launched a new and exclusive transaction dataset in July 2022.
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