Tax Analyst Salary: Your 2025 Guide

Tax analysts oversee compiling, evaluating, and filing tax returns and other tax liabilities for an organization. Specializing in tax savings, tax analysts also track potential deductions, tax breaks, and expenses that can help clients lower their tax payments. If you enjoy working with numbers and are interested in taxation, a tax analyst role could be a rewarding path to explore. As of January 2025, the average hourly pay for tax analysts in the US stands at $23.10 per hour [1].

Read on to learn more about tax analysts’ work duties, average annual income, and career prospects.

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Payroll and Tax Fundamentals

Using the pay statement as our roadmap, this course covers the basics of payroll that everyone who receives a paycheck should know. Starting with your ...

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What is a tax analyst?

A tax analyst guides businesses and individuals through the process of preparing and submitting tax returns, ensuring full compliance with local, state, and federal tax regulations. Besides assessing the taxes payable and identifying legal avenues for tax reduction, tax analysts also work toward the following:

• Monitoring Internal Revenue Service (IRS) alerts for regulatory changes

• Implementing internal tax compliance protocols

• Offering support for both internal and external audits 

• Reviewing indirect tax returns, as needed

How much does a tax analyst make?

The average annual pay for a tax analyst in the United States ranges from $61,745 to $79,629, according to multiple job listing sites. The following table lists the base salary ranges provided by Zippia, Payscale, Glassdoor, Indeed, and Salary.com [2,1,3,4,5].

*Salary data current as of January 2025

Factors impacting tax analysts' salary

Your education, experience level, choice of industry, employer, and geographical location can all play a role in shaping your yearly income. Keep reading to examine each of these determining factors. 

Education

According to Zippia, as a tax analyst with a bachelor’s degree, you could earn an average annual salary of $71,492 [6]. An associate degree might earn around $54,463, while a high school diploma could yield up to $56,631 annually [6]. If you hold a master’s degree, your earning potential increases to $78,269 [6].

It’s worth noting that the majority of tax analysts, around 70 percent, hold a bachelor’s degree, making it the most common qualification in the field [6]. Another 14 percent hold a master’s degree and 11 percent have an associate degree. Typical areas of study include accounting, business, finance, and economics.

Experience

As your experience builds, so does your income. Below is a breakdown of the average base salary for tax analysts based on years of experience, according to Glassdoor [3]:

• 0–1 year: $68,392

• 1–3 years: $76,955

• 4–6 years: $81,634

• 7–9 years: $82,441

• 10–14 years: $80,811

• 15 or more years: $84,714

Skills

Having a broad skill set can enhance your chances for promotions and increased salary. Payscale identifies the following as popular skills for tax analysts [1]: 

• Tax compliance: $63,761

• Tax preparation: $63,713

• Microsoft Excel: $64,068

• Data analysis: $63,351

• Research analysis: $62,284

Industry

The intricate tax challenges in industries such as manufacturing and information technology (IT) often lead to competitive pay for tax analysts [3]. 

• Manufacturing: $80,566

• Information technology (IT): $80,491

As an aspiring tax analyst, additional top-paying industries you can aim for include [3]:

• Energy, mining and utilities: $79,158

• Pharmaceutical and biotechnology: $81,627

• Telecommunications: $75,452

Location

Major cities, with their concentration of large corporations, financial institutions, and government agencies, frequently face a higher demand for skilled professionals. Consequently, these urban areas contribute to higher wages, reflecting the increased cost of living.

The highest-paying cities for tax analysts in the United States, according to data compiled by Indeed, are as follows [4]:

• Pittsburgh, PA: $108,101 

• San Diego, CA: $88,045 

• Houston, TX: $85,588

• Atlanta, GA: $78,299

• Plano, TX: $69,806

• New York, NY: $65,701 

• Denver, CO: $68,349 

• Tampa, FL: $58,902 

Company

Targeting firms with strong financial standing could increase your likelihood of landing a lucrative job. However, be sure to look beyond your base salary. Take into account the company’s culture and work environment, as these aspects greatly impact your job satisfaction, work-life balance, and long-term career growth.

The following list highlights total salary ranges offered by top-paying companies for tax analysts in the United States, according to Glassdoor [3]:

• LinkedIn: $93,000–$151,000 

• Wish: $95,000–$144,000

• Google: $90,000–$144,000

• Yahoo: $87,000–$138,000

• Workday: $88,000–$131,000

• Cisco: $84,000–$131,000

• Bloomberg: $85,000–$134,000

Tax analyst job outlook 

According to the US Bureau of Labor Statistics (BLS), the employment rate for tax examiners, collectors, and revenue agents is set to grow by 2 percent between 2023 and 2033 [7]. The projection translates to an average of 4,100 job openings each year over the forecast period [7]. Additionally, the ever-changing laws and protocols around taxation suggest that the demand for tax analysts will continue to rise.

Learn more about tax analysis on Coursera

A tax analyst assesses tax liabilities and practices for individuals or corporate entities in line with relevant tax laws. If you’re looking to expand your skills as a beginner, consider pursuing the Payroll and Tax Fundamentals course offered by ADP, on Coursera. 

Besides covering fundamental aspects of payroll and tax, the modules in this course offer insight into calculating payroll amounts, including gross and taxable wages. The course also features 27 assessments to help reinforce your understanding and track your progress. 

To supplement your foundational skills, consider enrolling in the US Federal Taxation Specialization, also available on Coursera. Offered by the University of Illinois Urbana-Champaign, this Specialization provides an overview of US federal taxation for individuals and businesses alike. You will also have the opportunity to gain guidance on tax accounting, property taxation, corporate tax, depreciation, and amortization. You can finish this Specialization in three months by dedicating 10 hours per week at your own pace.

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U.S. Federal Taxation

U.S. Federal Taxation of Individuals & Businesses. Learners will develop knowledge in U.S. federal taxation as applied to individuals and businesses.

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Average time: 3 month(s)

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Skills you'll build:

Business Analysis, Federal Income Tax, Tax Accounting, IRS Regulations, Pass-Through Entity Taxation, Corporate Tax, Depreciation, Amortization, Capital Gains and Losses, Property Taxation, Nontaxable Exchanges, Tax Deduction, Form 1040 Preparation, Individual Taxation, U.S. Federal Tax, Tax Deductions, Self-Employment Tax

specialization

U.S. Federal Taxation

U.S. Federal Taxation of Individuals & Businesses. Learners will develop knowledge in U.S. federal taxation as applied to individuals and businesses.

4.8

(741 ratings)

24,131 already enrolled

Intermediate level

Learn More

Average time: 3 month(s)

Learn at your own pace

Skills you'll build:

Business Analysis, Federal Income Tax, Tax Accounting, IRS Regulations, Pass-Through Entity Taxation, Corporate Tax, Depreciation, Amortization, Capital Gains and Losses, Property Taxation, Nontaxable Exchanges, Tax Deduction, Form 1040 Preparation, Individual Taxation, U.S. Federal Tax, Tax Deductions, Self-Employment Tax