Explore the average tax advisor salary in the United States, along with various factors that can affect the salary you can expect to make. This information can help you along your career path and empower you as you move forward.
A tax advisor offers expert guidance and assistance regarding matters related to taxes, serving individuals, businesses, organizations, or a combination of the three. Typical services that tax advisors provide for their clients include tax planning, preparation, compliance, and many others. Various factors can impact the salary you may receive as a tax advisor in the US, including your education and certification, experience, skills, where you work, the industry you work in, and the firm you work for.
Discover more about the role of a tax advisor and the factors that impact the average annual earnings of this position to determine if it’s the right fit for you.
A tax advisor, also known as a tax consultant or tax professional, is an individual or a firm that provides expert advice and assistance to individuals, businesses, and organizations on matters related to taxation. Your main role in this job is to help clients understand and navigate often complicated tax regulations and laws to minimize their tax liabilities. At the same, your work also helps make sure your clients remain compliant with all applicable tax laws.
Tax advisors are knowledgeable about taxes at the local, state, and national levels, including all taxes, rules, and regulations. They stay up to date with changes in tax laws, such as income tax laws, and help clients interpret and apply them to their specific situations. Tax advisors work closely with their clients to develop effective tax strategies that align with their financial goals and objectives.
Some standard services provided by tax advisors include:
Tax planning: Advising clients on strategies to reduce tax liabilities through deductions, credits, and exemptions while staying compliant with tax laws.
Tax preparation: Assisting clients in preparing and filing tax returns without errors and on time according to all relevant deadlines.
Tax compliance: Ensuring clients adhere to tax laws and regulations and assisting with responding to tax inquiries or audits from tax authorities, such as the IRS
Estate planning: Helping clients plan and structure their estates in a tax-efficient manner, considering inheritance and gift taxes
It's important to note that tax advisors are different from tax preparers and accountants, although some professionals may offer multiple services. Tax advisors typically specialize in tax planning and advisory services and may collaborate with other professionals to provide comprehensive financial guidance to their clients.
According to College Board, accountants and auditors earn an average of $79,932 per year [1], while the US Bureau of Labor Statistics (BLS) reports the median annual income for accountants and auditors as $79,880 as of May 2023 [2]. The average annual salary of a tax advisor ranges from $58,252 to $139,857, based on data from five separate salary reporters [2, 3, 4, 5, 6]:
US BLS (median) | Glassdoor | Indeed | Zippia | Salary.com |
---|---|---|---|---|
$79,880 | $85,585 | $88,693 | $58,252 | $139,857 |
Various factors can impact the salary you may receive as a tax advisor in the US. Keeping these factors in mind when pursuing tax advisor roles can help you understand the level of compensation you might expect from a particular firm.
Higher levels of education, such as advanced degrees in taxation or accounting, can enhance a tax advisor's qualifications and salary prospects. Gaining additional credentials, such as the Certified Public Accountant (CPA) or Enrolled Agent (EA) professional certifications, can also positively influence your salary levels.
According to Zippia, tax advisor salaries also differ based on the amount of higher education you complete. Discover the various annual earnings you could make as a tax advisor based on your degree level [5]:
High school diploma: $44,883
Associate degree: $50,551
Bachelor’s degree: $61,029
Master’s degree: $68,642
The level of experience a tax advisor has can make a significant difference in their salaries. Generally, as your years of experience and expertise as a tax advisor increase, your earning potential does, too.
Explore data reported from Glassdoor as of February 2025 that indicates a rise in annual average salary for a tax advisor with more years of experience in the tax industry [3]:
0–1 years of experience: $67,773
1–3 years: $76,230
4–6 years: $82,921
7–9 years: $86,395
10–14 years: $87,955
15+ years: $93,026
The skills you possess, including technical tax knowledge, problem-solving and decision-making abilities, communication skills, and continuous learning, can significantly influence your tax advisor salary. Clients and employers value tax advisors who can provide accurate advice, devise effective tax strategies, and maintain strong client relationships. Proficiency in tax software can also contribute to higher salaries by increasing efficiency and generating additional revenue opportunities.
The geographic location of employment can have a considerable impact on a tax advisor's salary. The cost of living and demand for tax advisory professionals in various cities or regions can increase the compensation level. Explore how living in different cities in the United States can affect how much you earn on average, according to data from Indeed as of February 2025 [4]:
Boston, MA: $145,964
Charlotte, NC: $135,752
New York, NY: $101,344
Houston, TX: $86,107
San Francisco, CA: $76,158
Valencia, CA: $73,821
St. Louis, MO: $51,469
The industry you work in also plays a significant role in how much you can expect to earn. Like differing locations, different industries have varying levels of complexity in terms of tax regulations, compliance requirements, and financial structures.
According to Glassdoor, the four highest paying industries for a tax advisor and their accompanying average total pay include [3]:
Energy, mining, & utilities: $120,282
Information technology: $92,550
Retail and wholesale: $86,545
Financial services: $75,074
According to BLS, similar roles, such as accountants and auditors, expect job growth of 6 percent from 2023 to 2033. The best estimate for job growth for tax advisors is around this same level, which is on par with the average outlook across all US occupations. This growth equates to over 91,400 job openings available on average each year within this time span [2].
Within the tax industry, many jobs have similar or identical responsibilities to tax advisors. Explore a few other common related job titles in the tax industry and their average salaries:
Tax consultant: $88,700
Tax preparer: $44,619
Tax specialist: $63,802
Payroll specialist: $56,276
Tax associate: $60,407
Tax analyst: $72,251
Tax accountant: $79,063
*All annual base salary data is sourced from Glassdoor as of February 2025 and does not include additional pay, such as commission and benefits.
Your average annual earnings as a tax advisor may vary depending on factors including your location, education level, and specific job title. To earn more as a tax advisor, consider furthering your education, getting licensed, completing certifications, or relocating to an area with a higher average salary and a booming tax industry.
If you’re interested in learning more about becoming a tax advisor or other similar positions, completing a course or receiving a relevant Professional Certificate is an excellent place to start. On Coursera, you can enroll in courses from some of the world’s exceptional educational institutions. For example, consider ADP’s Payroll and Tax Fundamentals course, or explore the Financial Markets course offered by Yale University. You might also check out the US Federal Taxation Specialization from the University of Illinois at Urbana-Champaign.
College Board. "Big Future: Accountants and Auditors, https://bigfuture.collegeboard.org/careers/accountant-or-auditor/income-and-hiring." Accessed February 11, 2025.
US Bureau of Labor Statistics, “Accountants and Auditors: Summary, https://www.bls.gov/ooh/business-and-financial/accountants-and-auditors.htm.” Accessed February 11, 2025.
Glassdoor. “Salary: Tax Advisor, https://www.glassdoor.com/Salaries/tax-advisor-salary-SRCH_KO0,11.htm.” Accessed February 11, 2025.
Indeed. “Tax advisor salary in the United States, https://www.indeed.com/career/tax-advisor/salaries?from=top_sb.” Accessed February 11, 2025.
Zippia, “Tax Advisor Salary, https://www.zippia.com/salaries/tax-advisor/.” Accessed February 11, 2025.
Salary.com. “Tax Advisor Salary, https://www.salary.com/research/salary/recruiting/tax-advisor-salary.” Accessed February 11, 2025.
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