Updated Checked by the Tax-Services.ca editorial team How we check
Tax companies come in more kinds than the name suggests, and picking between them starts with knowing what you actually need. The CRA lists a tax preparer as a firm, an organization, a discounter or another certified individual, and its filing page names other routes as well: software, a free clinic, paper. We assumed you mean businesses that prepare returns for a fee.
What kinds of tax companies are there?
The CRA page on using a professional tax preparer is short, and it doesn’t rank anyone. It says a preparer can be a firm, an organization, a discounter or another certified individual. Beyond that the choice is yours, and it comes down to what you’re paying for.
| Option | What you get | What to check |
|---|---|---|
| Tax firm or accounting practice | A person prepares and files your return through EFILE, for a fee | Who signs off, what the fee covers, whether they answer questions after filing |
| Discounter | Named by the CRA as a kind of preparer, sometimes tied to advances on a refund | The terms in writing. We couldn’t confirm the CRA’s rules for these, so ask what you owe if the refund is smaller |
| Certified software | You prepare it yourself and file with NETFILE | That it’s on the CRA’s certified list |
| Free tax clinic | A volunteer completes the return at no charge | If your situation counts as modest and simple |
Big chain or one person working from a home office? The CRA page doesn’t treat them differently, and neither should you. What counts is whether the person is certified to file your return and willing to explain what they’ve done.
How do you compare tax companies without knowing their prices?
We can’t give you fee levels, because we haven’t found an official source for them, and prices posted on company sites change. So compare on things you can check. Ask for the total in writing before they start, including what happens if you have a slip you forgot to bring. Ask whether the fee covers a reassessment or a CRA letter next spring. Ask who actually prepares your return, because the person at the counter isn’t always the one who files it.
Then ask for the plain description of what they’ll do if you disagree with the CRA. A good answer is short and specific. A bad answer is a paragraph about how much they care.
If you call three companies, write down the same five questions for each and keep the answers side by side. Two minutes of notes beats a gut feeling a week later, when the offices all blur together.
What should you know before you walk in?
Get a baseline. Then you can judge what a company tells you instead of taking it on trust. Say you earn $55,000 in Ontario, all from a job. Our income tax calculator puts your federal and Ontario tax at $7,178. Now suppose your T4 shows $8,000 withheld. The gap is roughly $822, so a refund near that figure is reasonable. If a firm quotes several times that with no new deductions to explain it, ask how.
A real deduction changes the picture, but only by its worth. Add a $2,000 RRSP deduction and the tax drops to $6,773, a saving of about $405. That’s the scale to expect. The income tax calculator gives the first figure, and the tax refund calculator handles the withheld tax side. For a self-employed return, try the self-employed tax calculator first.
Is a discounter worth it?
Maybe, and maybe not. The advance on a refund is what draws people in, and that’s the part we couldn’t verify. The CRA page says you can expect a notice of assessment within two weeks of filing. That’s the yardstick. If the advance saves you a couple of weeks, ask what it costs in fees or interest, and if you’d owe money back if the assessment comes in lower.
Never sign anything you haven’t read. That includes the authorization, and the CRA asks you to review your prepared return and Form T183 before you approve it. Think about what a couple of weeks is worth to you. For most people it’s a few bucks of interest at most, so paying a real fee to get a refund early rarely adds up.
What do people get wrong when hiring a firm?
They pay for a service the free options would have covered. A plain T4 return with the standard credits is exactly what free clinics and certified software are built for. The CRA says clinics are for people with a modest income and a simple tax situation, and CRA pages differ on the income limits, so we haven’t repeated any dollar figure.
They also skip their own records. If your firm closes, you’ll want them.
Keep all your tax slips, receipts, and the completed Form T183 for at least 6 years.
Using a professional tax preparer, canada.ca
And they forget that the return is theirs. You sign it, so you answer for it. Read the totals, check your name, address and direct deposit details, and make sure the CRA has your current bank information before you file.
What if something goes wrong after you file?
You’ll want to know, before you pay, who picks up the phone. If the CRA sends a letter asking for receipts, or reassesses the return, ask your preparer what they do and whether it costs extra. Some firms handle it for the original fee and some charge by the hour, and a clear answer now saves an argument in April. If they can’t answer, that’s your answer.
Sources, and how we checked them
Preparer types, T183 advice and the two-week assessment note come from Canada Revenue Agency pages read in September 2026. The example tax uses the 2026 federal and Ontario rates in our calculators. The withholding figure of $8,000 is made up for illustration. We couldn’t confirm fees, discount terms or any company’s claims, and we make none. This is an independent guide, separate from any government body.
Frequently asked questions
What types of tax preparers does the CRA describe?
A firm, an organization, a discounter or another certified individual. Software, free clinics and paper are other ways to file.
How long until I get a notice of assessment?
The CRA page on tax preparers says to expect one within two weeks of filing.
What should I get from a company before they start?
The total cost in writing, who prepares the return and what is covered if the CRA writes to you later.
How long should I keep my documents?
The CRA says to keep your slips, receipts and the completed Form T183 for at least six years.
Can you tell me what tax companies charge?
No. We found no official fee levels, so we don't state any. Ask for the price in writing.
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