Tax Accountant Salary: Your 2025 Guide

Written by Coursera Staff • Updated on

Explore the average tax accountant earning potential, the factors that may affect it, and the job outlook for this role to help guide your job search and path to a successful tax accountant career.

[Featured Image] A tax accountant explains tax forms to her employer as they sit in an office space.

A tax accountant is a specialized professional who focuses on tax preparation, planning, compliance, and advisory services for individuals, businesses, and organizations, ensuring accurate reporting and maximizing tax benefits within the framework of tax laws and regulations. In this job, you may work across a variety of industries ranging from accounting firms to enterprises to governmental entities and more.

Many factors can impact your earning potential as a tax accountant in the United States, including your education and certifications, professional experience and skills, and the industry and location you work in. 

Explore the necessary tax accountant qualifications and other considerations that may affect your annual salary as a tax accountant to help you make important decisions regarding your career.

Read more: Accountant Salary: Average, Range, and Influencing Factors

Overview of tax accounting

A tax accountant is a professional who specializes in taxation and focuses on the preparation, analysis, and planning of tax-related matters for individuals, businesses, or organizations. In this role, you possess a deep understanding of tax laws and regulations.

Tax accountants have several key responsibilities, including:

  • Tax preparation: They help individuals and businesses in preparing their tax returns, making sure the returns report all income, deductions, credits, and other relevant financial information correctly.

  • Tax planning: Tax accountants provide clients with advice and strategies to help them maximize their tax benefits while minimizing liabilities. To do so, they analyze financial data and consider various factors to develop tax planning strategies in keeping with all relevant laws. 

  • Compliance and reporting: Tax accountants guide their clients and ensure they remain compliant with tax laws and regulations. They stay abreast of all changes in tax codes, maintain proper records, and prepare the necessary reports and filings.

  • Tax advisory services: They offer expert advice on complicated tax matters and help clients make informed decisions by evaluating the tax implications of various financial transactions.

Tax accountants may work in public accounting firms, insurance companies, government agencies, or as independent practitioners, as many various tax accountant careers exist. They often hold professional certifications, such as Certified Public Accountant (CPA) or Enrolled Agent (EA), and must stay up to date with evolving tax regulations to provide accurate and valuable tax advice to their clients.

How much does a tax accountant make?

According to All Business Schools, the annual income for accountants and auditors is an average of $79,880 [1]. Based on data from five different salary sources, the average annual salary for a tax accountant ranges from $62,142 to $92,665 [1, 2, 3, 4, 5]: 

All Business SchoolsUS BLS (median)GlassdoorIndeedZippia
$79,880$79,880$78,247$77,524$62,142

Factors that impact tax accountant salary

While pursuing a career as a tax accountant, it is important to remember the factors that influence the overall pay you receive, such as your skill level, education, certifications, years of experience, the company you work for, and the industry you are in.

Understanding these factors allows you to predict the overall compensation you may receive from a company for a tax accountant role and gives you the ability to enhance your standing in one or more of these factors to raise your expected level of compensation if desired. 

Read more: What Is a Good Salary?

Skills

As a tax accountant, a strong mathematics skill set, ability to analyze details, and overall attitude in serving your clients to the best of your ability are crucial to your success. Beyond these general skills, important technical and workplace skills to have in order to pursue a career as a tax accountant are:

Technical skills

  • Expertise in tax laws and regulations at the local, state, and federal level

  • Experience with tax software, such as ProSeries, Vertex, or CSC CorpTax, and proficiency using Microsoft Excel

  • Ability to compute and understand required statistics and arithmetic related to tax calculations

Workplace skills

  • Ability to detect errors and complete work accurately

  • Strong communication and administrative skills while engaging clients

  • Organizational skills related to coordinating with clients and other parties

  • Time-management abilities in order to complete work on time before deadlines 

  • Problem-solving and critical thinking skills to sift through data and clearly communicate key findings to clients

According to data from Payscale, you may increase your earnings as a tax accountant by possessing some of these skills. Your salary could increase by 5 percent or higher based on your knowledge of these specific skills [6]:

  • Financial analysis: 10 percent

  • Software knowledge: 9 percent

  • Auditing: 5 percent

  • Payroll tax compliance: 10 percent

  • Sales tax reports: 6 percent

Education and certification

To land a role as a tax accountant, having a bachelor’s degree in accounting or another related topic of study is necessary. Other topics can range from finance to business administration. Beyond a four-year bachelor’s degree, pursuing higher education increases your ability to demand a higher salary. A master’s degree in taxation or accounting, for example, can help you qualify for more senior positions with higher salaries. 

Below are the expected average salaries for tax accountants based on education level, according to Zippia.com [5]:

Going beyond traditional education and earning a relevant accounting credential can boost your expected average salary. For example, pursuing professional certifications, such as Certified Public Accountant (CPA) or Enrolled Agent (EA), increases your earning potential in this field [7,8]:

Experience

As you gain more experience throughout your career, the skills and expertise you acquire demand a higher salary. With valuable experience, your performance on the job increases, and so does your overall earning potential. Below are the average yearly salaries for tax accountants based on years of experience, according to Zippia.com [5].

  • 0–2 years: $41,064

  • 3–6 years: $62,142

  • 7–12 years: $100,054

Location

The city you seek employment for a tax accountant role will play a large role in determining what salary you receive. A few of the key metrics to pay attention to when evaluating your earning potential in a city are the overall demand for tax accountant roles and the cost of living for residents. Strong demand and an above-average cost of living are both signs that higher compensation may be offered compared to the national average.

Highest-paying states for tax accountants

The US states that pay tax accountants the most on average in yearly salary are [9]:

  • District of Columbia: $96,412

  • New York: $78,256

  • New Jersey: $73,756

  • Massachusetts: $72,326

  • Connecticut: $71,080

Company and industry

The company you work for as a tax accountant is a major determining factor in the compensation you should expect to receive. A few examples of important factors that determine the salary range are the overall size of the firm and the reputation of it. In general, larger firms, well-established in the industry, have the resources to pay tax accountants an above-average salary. The opposite is true for small firms with a limited client base or independent practices.

The average salary for  a tax accountant role also varies depending on the specific industry the company you work for is in. With the wide array of firms and industries that employ tax accountants, certain factors such as tax regulations, compliance requirements, and financial structures have a significant impact on your overall earning potential.

Highest-paying industries for tax accountants

Insurance companies, roles with the government, finance companies, and tax preparation companies are the most popular industries to join for tax accountants looking for higher salaries. Outside of these high-paying industries, other common industries that employ tax accountants frequently are retail companies, colleges or universities, technology firms, non-profits, companies involved in health care, and construction companies. 

The top five industries for average annual US salary, according to Glassdoor, include [3]:

  • Legal: $100,889

  • Information technology: $99,309

  • Insurance: $92,095

  • Telecommunications: $89,664

  • Energy, mining, and utilities: $87,647

Job outlook for tax accountants

According to BLS, occupations in the accountants and auditors sector may grow by 6 percent from 2023 to 2033. This job growth and demand level is around the average growth expected for all US jobs. It represents over 91,400 new jobs becoming available on a year-by-year basis within the noted time frame [10].

How to become a tax accountant

To become a tax accountant, consider taking the following steps:

  • Obtain a relevant degree: Earn a bachelor's degree in a finance-related field such as accounting. Some individuals pursue a master's degree in taxation for advanced knowledge in tax-specific topics.

Earn Your Degree

Georgetown University

University of North Texas

University of North Texas

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  • Gain required experience: Seek internships or entry-level positions at accounting firms or similar companies to gain hands-on experience. Some roles to pursue in these early stages are accounts payable specialist and staff accountant.

  • Obtain professional certification: Consider obtaining professional certification, such as Certified Public Accountant (CPA), a credential that the accounting profession highly values. CPA certification requires meeting specific education requirements, passing an exam, and fulfilling work experience criteria.

  • Specialize in taxation: Develop specialized knowledge in taxation by taking courses or pursuing a master's degree in taxation, which can enhance your understanding of tax laws, regulations, and complex scenarios or issues, while simultaneously boosting your tax accountant qualifications, making you eligible to pursue higher-level jobs.

It's important to note that the specific requirements to become a tax accountant can vary by state and jurisdiction. Research the requirements set by the relevant accounting or professional organizations in your region to ensure you are on the right path to becoming a tax accountant.

Tax accountant career path

As a tax accountant, start gaining experience in the industry and building your overall skills after you finish your schooling. Additional career path opportunities may open up as you build experience, allowing you to find a location, industry, and specialty you like. This exploration enables you to create a career path as you build upon your skills and gain the necessary knowledge or certifications related to your specialty of choice. 

As a tax accountant, it's common for your career to lead to other opportunities in the accounting field. These other roles may include public accountant, financial analyst, or accounting supervisor. Further along in your career, opportunities to become an executive at a firm or to take a role as a financial manager at a corporation may arise. Related job titles to these positions include regional controller or tax manager.

Read more: 7 Popular Accounting Certifications

You’ll find other job titles related to tax accountants, which share common elements regarding their job descriptions and specific duties. Explore  job titles related to that of a tax accountant within the tax industry:

*All annual base salary data is sourced from Glassdoor as of January 2025 and does not include additional pay, such as commission and benefits.

Next steps

Many factors may affect your tax accountant salary, including the location you choose to work and the industry your role is in. To boost your earnings and advance your career, consider enhancing your skills, furthering your education, and completing popular tax career certifications to add more to your resume.

If you’re interested in learning more about becoming a tax accountant or other similar positions, completing a course or receiving a relevant certificate is a great place to start. Consider Introduction to Finance: The Basics offered by the University of Illinois on Coursera. This program is designed for beginners and covers financial statements, cash flow, finance, and more. If you're looking to advance your skills and knowledge, consider the US Federal Taxation Specialization program at the University of Illinois at Urbana-Champaign.

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Article sources

1

All Business Schools. “How Much Does an Accountant Make?, https://www.allbusinessschools.com/accounting/salary/.” Accessed January 23, 2025.

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