In a significant move to enhance its financial management offerings, PayPal Holdings Inc. announced on January 20, 2026, a new partnership with april, a leading embedded tax technology platform. This collaboration will enable U.S. PayPal Debit Mastercard® customers to file their 2025 federal and state tax returns for free through april's DIY tax filing service. This initiative not only aims to simplify tax filing for customers but also saves them an estimated $160 in traditional filing costs.

2. Streamlined Tax Filing Experience

The new tax filing service allows PayPal Debit Card customers to navigate a simple, step-by-step process through april's user-friendly tax engine. Users can easily input their information, upload necessary documents, and file their tax returns electronically with the IRS. The service is designed to deliver a frictionless experience, pre-filling information based on uploaded documents and enabling the average user to complete their filing in under twenty minutes.

To assist customers with any tax-filing questions, april offers an AI-powered chatbot as well as live support options at a fee. Additionally, customers can benefit from april’s maximum refund guarantee, which ensures they receive the highest possible tax refunds.

3. PayPal's Commitment to Financial Management

Shanthi Sarkar, PayPal's VP of Debit and Money Management, emphasized the company's commitment to providing customers with smarter, more rewarding ways to manage their finances. "Our partnership with april empowers customers to manage even more of their finances in one trusted place," Sarkar stated. This initiative aligns with PayPal's broader goal of keeping financial management centralized and accessible for its users.

Ben Borodach, CEO and Co-Founder of april, added, "By connecting tax filing to where customers already manage payments, we can deliver better outcomes for both PayPal and its customers." This collaboration not only simplifies the tax process but also enhances user loyalty by providing added value.

4. Additional Financial Tools for Customers

Beyond the free DIY tax filing service, PayPal Debit Card customers can also access a variety of financial tools to jumpstart their 2026 financial goals:

Flexible Payment Options

PayPal offers customers multiple ways to pay their taxes, including options like PayPal Credit, which provides six months of special financing on purchases over $149, and the PayPal Cashback Mastercard®.

Early Access to Tax Refunds

Customers utilizing PayPal Direct Deposit can receive their federal tax refunds up to five days early, allowing immediate access to funds across millions of retailers. Furthermore, customers can choose to deposit part or all of their paychecks into their PayPal Balance account, with funds available up to two days earlier than standard banking methods.

Earn Rewards and Interest

With the PayPal Cashback Mastercard, users can earn 3% cash back on PayPal purchases, even during the tax season. Additionally, customers using their PayPal Debit Card can earn 5% cash back on select categories of spending. Tax refunds can also be transferred to PayPal Savings, which offers a competitive APY, allowing customers to earn interest on their refunds.

5. Conclusion

Starting today, PayPal Debit Card customers can access the new tax filing option through april, with services rolling out to all U.S. users in the coming weeks. This innovative collaboration marks a crucial step in enhancing customer financial management and simplifying the often-complex tax filing process. By integrating tax filing into its existing suite of financial tools, PayPal continues to reinforce its position as a leader in the financial technology space, empowering consumers and businesses alike.

For more details on how to file taxes through PayPal's partnership with april, customers are encouraged to visit PayPal's official website to learn more and sign up for a PayPal Debit Card.

Original press release