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Business Finance

Top 10 Best Payroll Tax Software of 2026

Compare top payroll tax software tools to streamline compliance and save time. Find the best solution for your business needs today.

Alexander Schmidt

Alexander Schmidt

Feb 11, 2026

10 tools comparedExpert reviewed
Independent evaluation · Unbiased commentary · Updated regularly
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Streamlining payroll tax management is essential for businesses aiming to avoid penalties, ensure accuracy, and focus on growth—yet choosing the right tool amid a broad market requires balancing features like automation, compliance support, and usability. This guide highlights the top 10 solutions, each designed to address diverse needs, from small businesses to enterprises, to help simplify tax processes and enhance operational efficiency.

Quick Overview

  1. 1#1: ADP RUN - Cloud-based payroll platform that automates complex tax calculations, filings, and compliance for businesses of all sizes.
  2. 2#2: Paychex Flex - Full-service payroll solution with expert-guided tax filing, payments, and multi-state compliance guarantees.
  3. 3#3: Gusto - Intuitive payroll software that automatically handles federal, state, and local tax withholding and filings.
  4. 4#4: QuickBooks Payroll - Integrated payroll tool for QuickBooks users that calculates taxes accurately and e-files forms effortlessly.
  5. 5#5: Rippling - All-in-one HR and payroll system with automated multi-state and international tax compliance.
  6. 6#6: Paylocity - Modern payroll and HCM platform featuring real-time tax updates and automated compliance reporting.
  7. 7#7: OnPay - Affordable payroll service guaranteeing accurate tax calculations, filings, and multi-state support.
  8. 8#8: UKG Pro - Enterprise workforce management software with advanced global payroll tax processing and compliance.
  9. 9#9: Dayforce - Continuous payroll HCM solution delivering precise tax withholding and regulatory compliance worldwide.
  10. 10#10: Patriot Full Service Payroll - Cost-effective payroll software that files all taxes on behalf of users with a 100% accuracy guarantee.

Tools were selected based on criteria including accuracy of tax calculations, robustness of compliance management (including multi-state and global requirements), ease of use, and overall value, ensuring alignment with the varied demands of modern organizations.

Comparison Table

This comparison table breaks down top payroll tax software tools, including ADP RUN, Paychex Flex, Gusto, QuickBooks Payroll, Rippling, and more, to help readers understand their core features, pricing, and key advantages. By comparing these solutions side-by-side, users can identify the best fit for their business, whether focused on automation, user-friendliness, or scalability.

1ADP RUN logo9.5/10

Cloud-based payroll platform that automates complex tax calculations, filings, and compliance for businesses of all sizes.

Features
9.8/10
Ease
9.2/10
Value
9.3/10

Full-service payroll solution with expert-guided tax filing, payments, and multi-state compliance guarantees.

Features
9.5/10
Ease
9.0/10
Value
8.8/10
3Gusto logo9.1/10

Intuitive payroll software that automatically handles federal, state, and local tax withholding and filings.

Features
9.3/10
Ease
9.6/10
Value
8.7/10

Integrated payroll tool for QuickBooks users that calculates taxes accurately and e-files forms effortlessly.

Features
9.2/10
Ease
8.5/10
Value
8.0/10
5Rippling logo8.7/10

All-in-one HR and payroll system with automated multi-state and international tax compliance.

Features
9.2/10
Ease
8.4/10
Value
8.1/10
6Paylocity logo8.4/10

Modern payroll and HCM platform featuring real-time tax updates and automated compliance reporting.

Features
8.7/10
Ease
8.9/10
Value
7.8/10
7OnPay logo8.7/10

Affordable payroll service guaranteeing accurate tax calculations, filings, and multi-state support.

Features
8.9/10
Ease
9.2/10
Value
9.4/10
8UKG Pro logo8.4/10

Enterprise workforce management software with advanced global payroll tax processing and compliance.

Features
9.2/10
Ease
7.6/10
Value
7.9/10
9Dayforce logo8.2/10

Continuous payroll HCM solution delivering precise tax withholding and regulatory compliance worldwide.

Features
9.1/10
Ease
7.4/10
Value
7.7/10

Cost-effective payroll software that files all taxes on behalf of users with a 100% accuracy guarantee.

Features
7.8/10
Ease
8.4/10
Value
8.7/10
1
ADP RUN logo

ADP RUN

enterprise

Cloud-based payroll platform that automates complex tax calculations, filings, and compliance for businesses of all sizes.

Overall Rating9.5/10
Features
9.8/10
Ease of Use
9.2/10
Value
9.3/10
Standout Feature

ADP's TotalSource expertise for guaranteed on-time, accurate tax filings across multiple jurisdictions

ADP RUN is a leading cloud-based payroll solution from ADP that specializes in automating payroll processing, tax calculations, withholdings, and filings for businesses of all sizes. It ensures compliance with federal, state, and local tax regulations through accurate computations and direct submissions to government agencies. The platform integrates HR management, time tracking, and benefits administration, providing a comprehensive suite for efficient workforce management.

Pros

  • Exceptional tax compliance with automated federal, state, and local filings
  • Scalable for small to enterprise-level businesses with robust integrations
  • 24/7 U.S.-based support and guaranteed accuracy on tax calculations

Cons

  • Higher pricing tiers can be costly for very small businesses
  • Initial setup may require time for complex payroll configurations
  • Limited customization options compared to niche tax software

Best For

Mid-sized businesses seeking reliable, all-in-one payroll tax management with expert-backed compliance.

Pricing

Starts at $59/month + $4-$11 per employee for Essential plan; scales to Enhanced ($79+/mo + per employee) and Complete ($119+/mo + per employee) with added features.

2
Paychex Flex logo

Paychex Flex

enterprise

Full-service payroll solution with expert-guided tax filing, payments, and multi-state compliance guarantees.

Overall Rating9.2/10
Features
9.5/10
Ease of Use
9.0/10
Value
8.8/10
Standout Feature

Worry-Free Compliance Guarantee, which covers penalties for tax filing errors caused by the software

Paychex Flex is a comprehensive payroll and HR platform from Paychex that specializes in automated payroll processing and tax management, handling federal, state, and local tax calculations, filings, and payments with high accuracy. It offers real-time compliance updates, year-end forms like W-2s and 1099s, and integration with benefits administration for a holistic solution. Designed for scalability, it supports businesses of all sizes with robust reporting and analytics to streamline tax-related tasks.

Pros

  • Automated multi-jurisdictional tax filing and payments with guaranteed accuracy
  • Seamless integration with HR, benefits, and time-tracking modules
  • Dedicated support team and compliance experts for complex tax scenarios

Cons

  • Higher cost for small businesses with minimal needs
  • Initial setup requires data migration assistance
  • Advanced custom reporting may need additional configuration

Best For

Mid-sized businesses seeking an all-in-one payroll tax solution with strong compliance guarantees and scalability.

Pricing

Custom quotes starting at around $60/month base plus $5-$10 per employee/pay period; includes tax filing services.

3
Gusto logo

Gusto

specialized

Intuitive payroll software that automatically handles federal, state, and local tax withholding and filings.

Overall Rating9.1/10
Features
9.3/10
Ease of Use
9.6/10
Value
8.7/10
Standout Feature

Full-service automated tax filing and payments handled entirely on behalf of the employer in every US state

Gusto is an all-in-one payroll and HR platform that specializes in automating payroll processing, including accurate calculations, filing, and payments of federal, state, and local taxes for US businesses. It offers full-service tax compliance, employee self-onboarding, benefits administration, and time tracking integrated into a single dashboard. Primarily targeting small to medium-sized businesses, Gusto reduces manual errors and ensures regulatory adherence with minimal user intervention.

Pros

  • Automated tax calculations, filing, and direct payments across all 50 states
  • Intuitive interface with mobile app and employee self-service portal
  • Seamless integration of payroll, HR, benefits, and time tracking

Cons

  • Pricing increases significantly with employee count and add-ons
  • Limited to US operations with no international payroll support
  • Some premium features like next-day deposits incur extra fees

Best For

Small to medium-sized US businesses needing an easy-to-use, comprehensive payroll tax solution integrated with HR tools.

Pricing

Simple plan starts at $40/month base + $6/employee; Plus at $80/month + $12/employee; Premium is custom; add-ons for contractors, taxes, and benefits extra.

Visit Gustogusto.com
4
QuickBooks Payroll logo

QuickBooks Payroll

specialized

Integrated payroll tool for QuickBooks users that calculates taxes accurately and e-files forms effortlessly.

Overall Rating8.8/10
Features
9.2/10
Ease of Use
8.5/10
Value
8.0/10
Standout Feature

Intuit-handled full-service tax filing and payments with a 100% accuracy guarantee and penalty protection.

QuickBooks Payroll, from Intuit, is a robust payroll solution designed to handle employee payments, tax withholdings, and compliance seamlessly within the QuickBooks ecosystem. It automates federal, state, and local tax calculations, filings, and payments, including W-2 and 1099 forms. Ideal for small to medium businesses, it ensures accuracy with Intuit's tax penalty protection guarantee.

Pros

  • Seamless integration with QuickBooks Online for unified accounting and payroll
  • Automatic tax calculations, filings, and payments with accuracy guarantee
  • Fast direct deposits and unlimited payroll runs

Cons

  • Higher pricing tiers required for advanced features like time tracking
  • Per-employee fees can add up for larger teams
  • Occasional customer support delays during tax season

Best For

Small to medium-sized businesses using QuickBooks that need reliable, automated payroll tax compliance without in-house expertise.

Pricing

Core plan starts at $45/mo + $6/employee; Premium at $80/mo + $9/employee; Elite at $125/mo + $11/employee (billed annually).

Visit QuickBooks Payrollquickbooks.intuit.com
5
Rippling logo

Rippling

specialized

All-in-one HR and payroll system with automated multi-state and international tax compliance.

Overall Rating8.7/10
Features
9.2/10
Ease of Use
8.4/10
Value
8.1/10
Standout Feature

Global payroll engine with automated, localized tax compliance in 100+ countries

Rippling is an all-in-one HR, payroll, and IT platform that excels in automating payroll processing, including accurate tax calculations, withholdings, and multi-jurisdictional filings for US and global workforces. It ensures compliance with federal, state, and international tax regulations through real-time updates and seamless integrations. As a comprehensive solution, it goes beyond payroll taxes to handle onboarding, benefits, and employee management in one system.

Pros

  • Automated tax filings and payments across 100+ countries
  • Real-time compliance updates for changing tax laws
  • Seamless integration with HR, benefits, and IT tools

Cons

  • Pricing can be high for small businesses focused only on payroll taxes
  • Initial setup and learning curve for complex configurations
  • Overkill for companies needing standalone tax software without HR features

Best For

Mid-sized to enterprise companies seeking an integrated HR-payroll platform with robust global tax compliance.

Pricing

Custom quote-based pricing starting at $8 per employee per month for core payroll/HR, with add-ons for global payroll and advanced features.

Visit Ripplingrippling.com
6
Paylocity logo

Paylocity

enterprise

Modern payroll and HCM platform featuring real-time tax updates and automated compliance reporting.

Overall Rating8.4/10
Features
8.7/10
Ease of Use
8.9/10
Value
7.8/10
Standout Feature

Tax Compliance Guarantee, covering penalties and errors from their automated filings

Paylocity is a cloud-based HCM platform with robust payroll tax software that automates payroll processing, tax calculations, withholdings, and compliance filings across all 50 states. It handles W-2/1099 forms, quarterly/annual tax returns, and supports multi-jurisdictional payroll with real-time updates to tax tables. Integrated with HR, benefits, and time-tracking modules, it provides a unified solution for mid-sized businesses focused on accurate tax management.

Pros

  • Automated multi-state tax compliance and e-filing
  • Payroll accuracy guarantee with error handling
  • Seamless integration with HR and benefits modules

Cons

  • High cost for small businesses
  • Initial setup requires significant configuration
  • Pricing lacks transparency without a demo

Best For

Mid-sized businesses needing integrated payroll tax compliance within a full HCM suite.

Pricing

Custom quote-based pricing, typically $15-25 per employee per month plus base fees; no public tiers.

Visit Paylocitypaylocity.com
7
OnPay logo

OnPay

specialized

Affordable payroll service guaranteeing accurate tax calculations, filings, and multi-state support.

Overall Rating8.7/10
Features
8.9/10
Ease of Use
9.2/10
Value
9.4/10
Standout Feature

100% payroll tax accuracy guarantee, covering penalties if they make an error

OnPay is a full-service payroll software designed for small to medium-sized businesses, specializing in accurate payroll processing, tax calculations, filings, and payments across multiple states. It offers unlimited payroll runs, employee self-service portals, and seamless integrations with popular accounting tools like QuickBooks and Xero. The platform also handles benefits administration, new hire reporting, and 1099 filings, backed by a 100% accuracy guarantee on taxes.

Pros

  • Unlimited payroll runs at no extra cost
  • Automatic multi-state tax filings and payments with accuracy guarantee
  • Excellent customer support with dedicated specialists

Cons

  • Lacks built-in time tracking (requires integrations)
  • Fewer advanced HR tools compared to enterprise solutions
  • Onboarding can take time for complex setups

Best For

Small to medium-sized businesses seeking reliable, affordable payroll tax compliance without the hassle of manual filings.

Pricing

$40/month base fee + $6 per active employee; no setup or per-run fees.

Visit OnPayonpay.com
8
UKG Pro logo

UKG Pro

enterprise

Enterprise workforce management software with advanced global payroll tax processing and compliance.

Overall Rating8.4/10
Features
9.2/10
Ease of Use
7.6/10
Value
7.9/10
Standout Feature

Intelligent Tax Compliance Engine with real-time regulatory updates and automated error resolution

UKG Pro is a comprehensive HCM platform with robust payroll functionality, specializing in automated tax calculations, withholdings, and compliance for US federal, state, local, and international jurisdictions. It supports e-filing of forms like W-2s and 1099s, handles complex garnishments, and integrates with HR and timekeeping for seamless payroll tax management. Ideal for enterprises, it provides real-time compliance updates and audit-ready reporting to minimize errors and penalties.

Pros

  • Superior multi-jurisdictional tax compliance and automated filings
  • Seamless integration with HCM modules for end-to-end processing
  • Proactive alerts for regulatory changes and audit support

Cons

  • Steep implementation timeline and learning curve
  • High enterprise-level pricing not suited for SMBs
  • Customization requires professional services

Best For

Mid-to-large enterprises with complex, multi-state or international payroll tax needs requiring integrated HCM solutions.

Pricing

Custom enterprise pricing via quote; typically $20+ per employee/month, with minimums starting around $50,000 annually.

9
Dayforce logo

Dayforce

enterprise

Continuous payroll HCM solution delivering precise tax withholding and regulatory compliance worldwide.

Overall Rating8.2/10
Features
9.1/10
Ease of Use
7.4/10
Value
7.7/10
Standout Feature

Continuous Payroll Processing for daily, real-time tax calculations and compliance

Dayforce, from Ceridian, is a cloud-based HCM platform with robust payroll tax capabilities, automating complex tax calculations, withholdings, filings, and compliance across U.S. states, localities, and international jurisdictions. It supports multi-entity payroll with real-time updates to tax laws and generates forms like W-2s and 1099s effortlessly. Ideal for enterprises, it integrates payroll taxes with HR, benefits, and time management for end-to-end workforce operations.

Pros

  • Advanced multi-jurisdictional tax compliance and automation
  • Real-time tax law updates and accurate filings
  • Seamless integration with full HCM suite

Cons

  • Steep learning curve and complex setup
  • High cost unsuitable for small businesses
  • Lengthy implementation timeline

Best For

Mid-to-large enterprises needing integrated HCM with enterprise-grade payroll tax handling.

Pricing

Quote-based enterprise pricing, typically $10-20+ per employee/month depending on modules and scale.

Visit Dayforcedayforce.com
10
Patriot Full Service Payroll logo

Patriot Full Service Payroll

specialized

Cost-effective payroll software that files all taxes on behalf of users with a 100% accuracy guarantee.

Overall Rating8.1/10
Features
7.8/10
Ease of Use
8.4/10
Value
8.7/10
Standout Feature

We File or It's Free guarantee ensures accurate tax filings or the service is free for that period

Patriot Full Service Payroll is a cloud-based solution designed for small businesses, automating payroll processing, wage calculations, and tax withholdings. In full-service mode, it handles federal, state, and local tax filings, deposits, and new hire reporting on behalf of users. It supports unlimited payroll runs per month and offers direct deposit capabilities, making it suitable for straightforward payroll tax management.

Pros

  • Handles all tax filings and deposits with a 'We File or It's Free' guarantee
  • Affordable pricing with no contracts or setup fees
  • Unlimited payroll runs and responsive customer support

Cons

  • Limited advanced HR features and integrations
  • Basic reporting lacks deep customization
  • Interface feels somewhat dated compared to modern competitors

Best For

Small businesses seeking a hands-off, affordable solution for payroll tax compliance without dedicated accounting staff.

Pricing

Full Service starts at $37/month base + $4 per active employee/month; Basic Payroll from $17/month + $4/employee.

Conclusion

The reviewed payroll tax software provides reliable tools for tax management, with ADP RUN emerging as the top choice, known for automating complex calculations and ensuring compliance across various business sizes. Paychex Flex distinguishes itself with expert-guided support and multi-state guarantees, while Gusto stands out for its intuitive interface and seamless handling of federal, state, and local filings. Each option caters to unique needs, with the best fit depending on specific priorities.

ADP RUN logo
Our Top Pick
ADP RUN

For streamlined tax management, ADP RUN leads as the recommended solution—explore its features to simplify your tax processes.