Tax preparer pay at a glance (BLS, May 2025)
| Measure | Annual | Hourly |
|---|---|---|
| Median (half earn more, half less) | $54,920 | $26.40 |
| Average (mean) | $60,930 | $29.30 |
| Bottom 10% earn less than | $33,760 | — |
| 25th percentile | $38,910 | — |
| 75th percentile | $76,300 | — |
| Top 10% earn more than | $99,270 | — |
| Employed tax preparers in the U.S. | 76,480 | — |
What these numbers include, and what they leave out
The BLS figures come from the Occupational Employment and Wage Statistics survey of employers. They cover people on a payroll under the occupation "tax preparers": preparers at national chains, accounting firms and independent offices.
They don't include self-employed preparers who own their office. They also count only wages, so seasonal staff who work January to April show up with a lower annual figure than their hourly rate would suggest. Annual figures assume full-year work. For seasonal jobs, the hourly rate tells you more.
Credentialed preparers (enrolled agents and CPAs) generally earn more than non-credentialed preparers, because they can take on business returns and represent clients before the IRS.
Tax preparer pay by state
Pay follows local wages and cost of living. Average annual pay in five of the largest states:
| State | Average annual pay (mean) | State guide |
|---|---|---|
| New York | $79,160 | Become a tax preparer in New York |
| California | $71,540 | Become a tax preparer in California |
| Texas | $56,670 | Become a tax preparer in Texas |
| Georgia | $55,400 | Become a tax preparer in Georgia |
| Florida | $54,670 | Become a tax preparer in Florida |
How tax office owners get paid
When you own the office, your income is your preparation fees minus your costs. There's no wage. Your income comes down to three numbers:
- Returns per season. A first-year office might file anywhere from a few dozen to a few hundred returns. Most new offices grow through referrals, which take a season or two to build.
- Average fee per return. Practitioners in the National Society of Accountants' 2024 survey reported average fees of $300 to $600 for an itemized Form 1040. Simpler returns cost less, and returns with business schedules cost more. See what to charge for tax preparation.
- Costs. Professional software, per-return or bank-product fees, rent if you have a storefront, marketing, insurance and your PTIN and state fees. Our startup cost calculator adds these up.
Example: an owner's season
An illustrative home-based office files 200 returns at an average fee of $250. That's $50,000 in gross preparation fees. If software, per-return costs, marketing and other expenses come to $8,000 for the year, the owner keeps about $42,000 before income tax for a season that runs mostly January to April.
These are example numbers, not a prediction. Your volume, fees and costs will be different, and first seasons are usually smaller than later ones. See our earnings disclaimer.
How to earn more as a tax preparer
- Price by the return, not by the hour. Most firms in the NSA survey charge fixed fees or a mix of fixed and hourly fees, and 61% raise their fees every year.
- Add schedules you can charge for: business income (Schedule C), rental property, multiple states.
- Get the AFSP Record of Completion or become an enrolled agent to offer representation. See the Annual Filing Season Program.
- Own the office. Employees earn a wage; owners keep the margin on every return. See how to start a tax preparation business.
- Add preparers. Each preparer you add files returns under your office's EFIN, so you earn on volume you don't prepare yourself.
Tax preparer pay FAQ
How much do tax preparers make an hour?
The median is $26.40 an hour and the average is $29.30, per the Bureau of Labor Statistics' May 2025 data for employed tax preparers.
How much do tax preparers make a year?
Employed tax preparers earn a median of $54,920 a year. The middle half earn $38,910 to $76,300, and the top 10% earn more than $99,270 (BLS, May 2025).
How much do self-employed tax preparers make?
There's no official figure, because the BLS wage survey covers employees only. An owner earns total preparation fees minus costs, so 200 returns at $250 each is $50,000 in gross fees before expenses. Use our startup cost calculator to model your own numbers.
Which state pays tax preparers the most?
Among the large states, New York ($79,160 average) and California ($71,540) pay the most. Texas, Georgia and Florida average about $55,000 to $57,000 (BLS, May 2025).
How much do tax preparers make per return?
Employees are usually paid hourly or a commission. Owners keep their fee minus per-return costs. NSA's 2024 survey reported average fees of $300 to $600 for an itemized Form 1040. See what to charge for tax preparation.
Is tax preparation a good side business?
It can be: the season is concentrated from January to April, it can be run from home, and the startup costs are modest. You'll need a PTIN, an EFIN to e-file, professional software and training. See the tax office launch guide.
Sources
Program rules change; confirm current requirements with the IRS and your providers.