What Is a Tax Analyst? 2025 Career Guide

Tax analysts ensure companies follow all rules and regulations while working to minimize the amount paid in tax payments. Becoming a tax analyst requires skills in analytical thinking, communication, and more, as well as a bachelor’s degree. Keep reading to learn about the work of tax analysts and how you can prepare for this career. 

What does a tax analyst do?

As a tax analyst, you will support your clients with their tax returns and other tax forms. Your client may be an individual or a business. Proper compliance with state and federal regulations is a crucial part of this role since tax laws and codes can change. This requires you to perform ongoing research and keep clients informed with important information regarding their taxes. 

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Introduction to Finance and Accounting

Learn the basics of finance and accounting. Build a foundation of core business skills in finance and accounting

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Average time: 1 month(s)

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Financial Accounting, Accounting, Decision-Making, Corporate Finance, Financial Statement, Balance Sheet, Discounted Cash Flow, Cash Flow Analysis, Generally Accepted Accounting Principles, Accounting Terminology

Tax analyst tasks and responsibilities

As a tax analyst, you will have a wide range of responsibilities and will work within specific time restraints to ensure you submit tax returns on time according to state and federal deadlines. Another necessity for tax analysts is committing to regular learning so that you’re aware of any changes relating to tax law. The following are some common tasks you may perform as a tax analyst:

• Prepare both federal and state tax returns.

• Continuously research and learn about the latest developments in tax regulations, on both a federal and state level.

• Collect necessary data from clients.

• Educate clients on tax regulations and compliance.

• Collaborate with accountants, auditors, and taxpayers.

• Calculating taxes as well as establishing opportunities to save money on taxes.

• Developing financial reports.

Types of tax analysts

When it comes to tax analyst positions, you can find several related roles with varying job titles such as:

• Property tax analyst

• Income tax analyst

• State tax analyst

• Federal tax analyst

• Sales tax analyst

• Tax compliance analyst

• Indirect tax analyst

• Payroll tax analyst

Additionally, you can progress in your career and become a senior tax analyst. Senior tax analysts typically have a minimum of five years of tax experience. Earning a master’s degree, as well as a CPA (Certified Public Accountant) license can help improve your chances of moving on to a senior position. 

Tax analyst skills

As a tax analyst, you will need to equip yourself with technical and workplace skills. Developing these skills will help you qualify, and succeed in this role.

Technical skills

• Analytical skills: Given the significant amount of financial data involved in your work as a tax analyst, combined with the goal of minimizing tax payments, you will need to leverage your technical skills. Your analytical expertise, in particular, will help you to identify cost-saving strategies. 

• Tax software: When it comes to filing taxes, you will use tax software to help you prepare documents. Some of the more popular tax software tools include UltraTax CS, Drake Tax, Lacerte, and ProSeries.

Workplace skills

• Communication: Not only do you need to communicate and document information within tax forms effectively, but you also need to share information with clients and ensure they are aware of regulations for compliance purposes. Additionally, to best serve your clients, it's important to listen to their needs to understand their situation fully.

• Research: Learning continuously about tax laws is important for helping clients reduce their overall tax obligations. This is in addition to ensuring you’re working in accordance with regulations, which can change over time.

Tax analyst salary and job outlook

According to data from Glassdoor, the average annual salary for tax analysts is $71,898 [1]. Accounting and auditing positions have a positive job outlook over the coming years, with the US Bureau of Labor Statistics projecting growth of 6 percent from 2023 to 2033 [2].

To maximize your earning potential, consider looking for work in one of the states where tax analysts earn the highest salaries, such as California, Washington, Illinois, New Jersey, or New York [3].

How to become a tax analyst

To become a tax analyst, you first need to meet certain education requirements and should also consider earning specific certifications to improve job opportunities.

Education and training

Becoming a tax analyst begins with earning a bachelor’s degree. You have several options to choose from when deciding what type of bachelor’s degree to earn. Your coursework should include various types of accounting to prepare you with the necessary knowledge for your future career. Ultimately, bachelor’s degrees in finance, accounting, or a similarly related field are ideal. Although not a requirement, continuing your education to earn a master’s degree is valuable and can prove valuable for advancing in your career.

Certifications

Earning a designation such as Certified Public Accountant may help you qualify to work as a tax analyst. Becoming a CPA requires you to pass the CPA exam, which consists of four different sections. Some select states also require you to complete additional college credits beyond your bachelor’s degree, for a total of 150 credits.

Gain professional experience

Gaining relevant work experience can help prepare you for work as a tax analyst, whether it be an internship while you earn your degree or an entry-level position where you can gain tax knowledge and experience. Additionally, several states require you to have at least one year of accounting work experience to be eligible for a CPA license.

Get started as a tax analyst with Coursera

Tax analysts use their knowledge of tax laws and regulations to help companies, as well as individuals, minimize their tax payments. On Coursera, you can find highly rated courses to learn about tax strategies and important finance principles. US Federal Taxation from the University of Illinois covers information relating to both individual and large-scale federal tax returns and allows you to practice preparing tax returns.

Introduction to Finance and Accounting from the University of Pennsylvania will help you develop fundamental knowledge of corporate finance and financial accounting, including bookkeeping, and cash flow analysis.

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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

Introduction to Finance and Accounting

Learn the basics of finance and accounting. Build a foundation of core business skills in finance and accounting

4.4

(2,356 ratings)

79,505 already enrolled

Beginner level

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Average time: 1 month(s)

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Skills you'll build:

Financial Accounting, Accounting, Decision-Making, Corporate Finance, Financial Statement, Balance Sheet, Discounted Cash Flow, Cash Flow Analysis, Generally Accepted Accounting Principles, Accounting Terminology