Privacy Policy

Last updated: October 2026

1. Local-First Architecture (Zero Cloud Accounts or Telemetry)

Taxly is a local-first desktop application. We do not operate user accounts, cloud databases, or analytics/telemetry servers. All tax return calculations (35 federal forms for Tax Year 2025 & 2026 plus the South Carolina SC1040 worksheet), document imports (W-2, 1099, 1098), workpapers, and filled IRS PDF packets are stored and computed 100% locally on your disk.

2. Plain-Language Data-Flow & Network Endpoints

Taxly never uploads your tax files to a Taxly server. The application only makes network connections across three explicit boundaries:

  • 100% Local Disk (No Network):Tax engine calculations, AcroForm & OCR document extraction, local JSON/Markdown storage, and filled IRS PDF generation happen entirely on your computer. Unredacted Social Security Numbers (SSNs) exist only on your local disk inside your workspace and your local print-ready Form-1040.pdf.
  • Consent-Gated Outbound AI (Redacted):Optional AI chat, 6-agent review, and voice features are disabled until you explicitly grant consent in the app and configure your own provider (Anthropic API, OpenRouter, Google Gemini Live, or local Claude Code CLI). Before any text leaves your machine, Taxly's redaction boundary automatically masks SSNs (XXX-XX-XXXX), EINs, dates of birth, and bank routing/account numbers.
  • GitHub Releases / jsDelivr (Read-Only GET): Checks for application updates and tax-rule schema updates without transmitting any personal or tax return data.

3. Automatic PII Redaction & Export Safety

Every text file exported by Taxly (return-data.json, summary.md,filing-instructions.md, and CPA workpapers) passes through a single mandatory redaction boundary that strips SSNs, dates of birth, and bank account numbers before writing. Only the local print-and-mail facsimile (federal/Form-1040.pdf) and your raw supporting document copies retain unmasked identifiers on your local drive so you can print or hand them to your CPA.

4. Third-Party AI Providers

When you opt in to AI or voice features using your own API keys, redacted prompts are sent directly from your device to the provider you selected, governed by their respective privacy policies: Google (privacy policy), Anthropic (privacy policy), and OpenRouter (privacy policy).

5. Data Retention & Deletion

Because all data resides in your local workspace folder on your machine, you have complete control over retention. Deleting your local Taxly workspace folder permanently removes all tax data immediately.

6. Contact

For privacy questions or security reports, open an issue on GitHub or email privacy@taxly.ai.