Tax-Software Sales, Revenue Decline

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Port Washington, N.Y. - With Tax Day now in the country's collective rearview mirror, The NPD Group reported mixed results at best for boxed tax-preparation software sales.

NPD reported the average selling price (ASP) during the 2010 tax season for the software was almost flat, but ASPs have increased 33 percent since 2006.

However, offsetting this increase is a 25 percent decrease in units shipped during this same period. Year-over-year unit sales decreased 6 percent, with revenue declining 7 percent.

Stephen Baker, industry analysis VP at NPD, blamed the availability of free tax software.

"The advent of free tax software has forced the tax publishers to refocus their selling strategies," said Baker, adding "They now concentrate on software with more features and bells and whistles for the do-it-yourselfers who need more robust tax software."

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