Tax Preparer Salary


How Much Does a Tax Preparer Make?

On average, a Tax Preparer make $58,160 a year. The lowest-paid 10 percent made $29,170, while the top-paid 10 percent made $98,810.

Annually National Average Salary: $58,160

$29K
$35K
$58K
$76K
$98K
10%
25%
50%
75%
90%

* Based on information from the May 2023 salary report from the BLS.




Salary by State

  • Annually
  • Monthly
  • Hourly

Annual Salary by State

State 10% Annual 25% Annual Avg. Annual 75% Annual 90% Annual
Alabama$27,430$28,300$32,430$32,720$45,060
Alaska$41,280$49,830$67,440$75,240$83,660
Arizona$30,890$35,290$52,510$61,510$87,010
Arkansas$27,960$28,260$35,330$35,300$50,830
California$34,740$39,870$70,740$94,370$121,580
Colorado$35,780$44,340$72,220$91,000$97,210
Connecticut$30,160$37,620$50,540$63,350$79,240
Delaware$24,440$35,520$50,220$68,510$80,520
Florida$27,730$31,360$50,120$62,130$86,900
Georgia$22,650$31,710$45,590$47,910$76,510
Hawaii$27,160$27,240$49,230$68,660$74,880
Idaho$48,920$49,980$64,960$71,170$99,970
Illinois$29,990$34,740$49,970$55,220$79,040
Indiana$26,820$30,230$45,480$57,500$80,460
Iowa$29,680$45,800$54,110$59,690$96,400
Kansas$23,210$31,100$46,090$59,990$79,730
Kentucky$24,120$27,980$44,520$47,830$70,650
Louisiana$28,090$30,580$42,870$50,300$62,970
Maine$44,320$44,660$52,820$52,140$82,480
Maryland$33,380$38,050$56,790$68,330$102,100
Massachusetts$33,540$44,510$60,620$64,330$88,530
Michigan$34,730$37,230$58,960$76,090$89,280
Minnesota$31,410$37,150$62,170$78,500$126,380
Mississippi$22,370$26,950$39,850$48,860$63,340
Missouri$29,330$30,130$45,750$56,730$81,860
Montana$35,760$39,110$67,550$86,650$144,870
Nebraska$29,100$30,300$46,410$59,420$75,190
Nevada$28,010$29,050$56,800$73,120$103,320
New Hampshire$29,180$37,250$58,910$73,540$87,250
New Jersey$31,100$35,570$58,420$74,030$97,620
New Mexico$28,180$30,020$40,950$44,370$60,800
New York$36,760$50,200$72,810$97,010$104,940
North Carolina$26,340$35,700$58,200$77,910$97,670
North Dakota$33,990$48,930$61,460$65,960$84,250
Ohio$26,110$31,720$45,780$49,980$64,180
Oklahoma$26,700$27,760$42,500$49,390$72,670
Oregon$38,010$43,110$65,510$72,910$104,640
Pennsylvania$26,360$29,720$48,360$61,730$78,130
Rhode Island$34,730$40,370$56,010$66,350$92,830
South Carolina$22,150$27,210$47,670$60,780$83,460
South Dakota$36,390$38,170$50,190$57,200$69,820
Tennessee$22,460$31,200$57,020$78,420$120,360
Texas$28,210$32,510$54,070$65,620$88,210
Utah$37,120$46,500$67,490$82,420$100,640
Vermont$38,980$44,910$55,600$62,840$80,930
Virginia$30,280$39,930$64,400$76,520$100,270
Washington$36,630$45,040$55,140$67,120$78,430
West Virginia$22,000$22,900$35,770$33,040$69,570
Wisconsin$31,710$38,510$52,670$63,700$85,180
Wyoming$32,330$43,510$53,980$62,600$72,700
Guam$19,900$21,900$29,520$29,350$48,090
Puerto Rico$30,710$35,690$56,360$63,970$95,190

Annual Average Salary: Top 5 States

The top earning state in the field is New York, where the average salary is $72,810.

These are the top 5 earning states in the field:

New York - $72,810
Colorado - $72,220
California - $70,740
Montana - $67,550
Utah - $67,490

Tax Preparers: Salary Overview

Tax preparers help their clients file their income tax returns.

They may work with individuals or small businesses.

Tax preparers meet with their clients to review financial records, complete tax forms, and ensure that the completed forms follow legislation and regulations.

According to the Bureau of Labor Statistics, the mean annual wage for this profession was $49,550 as of May 2019.

The median annual wage for this profession (the salary found at the exact middle in the distribution) was $43,080 per year.

Salaries for tax preparers vary depending on a wide range of factors, including the level of experience, education, and region of employment.

The top 10 percent of tax preparers earned more than $87,060 a year while the lowest 10 percent made less than $21,750 per year.

The 25th percentile for the salary distribution is $28,450 per year, which means that most tax preparers (75%) made more than this amount.

Tax Preparer Salary by Experience

Experience can help a tax preparer become more efficient and this will typically increase his/her hourly rate.

According to accounting.com tax preparers with less than 1 year of experience made approximately $11.04 per hour, on average, while the mean hourly rate for tax preparers with 10-19 years of experience was $16.46 per hour.

The mean hourly rate was $12.18 for tax preparers who have between 1-4 years of experience and $15.02 per hour for those with 5-9 years of experience.

The total compensation varies depending on the number of billable hours and a tax preparer with 4 years of experience, for example, can make more than one with 8 or 9 years of experience if he/she has more clients and more billable hours.

Tax Preparers Salary by Industry

According to the United States Bureau of Labor Statistics, there were approximately 66,700 salaried tax preparers in 2019, most of them working for companies that provide accounting, tax preparation, bookkeeping, and payroll services.

The annual mean wage for tax preparers in this industry was $49,230 a year or $23.67 per hour.

Businesses that provide management, scientific, and technical consulting services hired only 560 tax preparers who were paid, on average, with $56,990 per year.

A higher annual salary was reported by tax preparers employed in the field of securities, commodity contracts, and other financial investment and related activities.

In this sector, the mean annual salary for tax preparers was $74,920, higher than the average for all industries.

However, there were only 500 tax preparers employed in this sector, and finding a job as a tax preparer in this field may require special training and a few years of experience in a different sector.

About 170 tax preparers were employed in the field of legal services and were paid, on average, with $59,260 per year.

There are many other factors that determine a tax preparer’s salary.

For example, holding a master’s degree in finance or accounting will help prove your skills to potential clients and increase your earnings.

After gaining a few years of experience as a tax preparer and building a client base you can become a self-employed tax preparer by applying for a preparer tax identification number through the IRS.

Your earnings as a self-employed tax preparer will depend on your skills but also on your communication and marketing abilities.

Commissions, Bonuses and Other Benefits

Some employers also offer bonuses, commissions, and profit-sharing to tax preparers.

According to a report published in May 2020 by payscale.com, tax preparers earned $1,020 on average in bonuses, $2,023 in commission, and $2,035 in profit sharing.

These numbers also vary depending on the tax preparers’ education, experience, and level of skills.

Tax preparers have made between $103-$5,041 in bonuses between $200-$20,161 per year in profit sharing and between $173-$16,281 in commission.

Only 15 percent of tax preparers reported that they have received medical insurance and only 8 percent of them had dental insurance, according to payscale.com.

* Based on information from the May 2023 salary report from the BLS. The figures represent accumulated data for all states of employment for Tax Preparers. BLS data represents averages and medians for workers at all levels of education and experience. This data doesn't represent starting salaries.

* Employment conditions in your area may vary.


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