A Deep Dive into the Tax Accounting Salary Range

Tax accountants are an integral part of any business or individual’s financial strategy. Subject to education, experience, location, and industry, the salaries of these certified professionals vary significantly. In this article, we will take an in-depth look at the tax accounting salary and explore different factors that influence these figures.

To understand more about a tax accountant’s compensation, it is crucial to understand their role first. A tax accountant is responsible for preparing and filing tax returns at the federal, state, and sometimes local levels for their clients. They ensure compliance with government regulation, help clients minimize tax liability, and advise on investment strategies and financial planning.

According to the U.S. Bureau of Labor Statistics, the median annual salary for accountants, in general, was $71,550 in May 2019. Those on the higher end of the spectrum earned more than $124,450. However, it’s worth mentioning that these figures include all accountants and auditors, and not just tax accountants specifically.

For tax accountants, Glassdoor’s salary data states that the average base pay is around $62,397 per year. Again, keep in mind that this figure fluctuates based on location, years of experience, and employer’s size. For instance, tax accountants working in larger cities with a high cost of living, like New York or San Francisco, typically command higher salaries than those who are based in smaller cities or towns.

The years of experience a tax accountant has also significantly impacts their salary. Entry-level tax accountants might earn around $50,000 annually, while those with 10 to 20 years of experience can earn upwards of $100,000. Furthermore, tax accountants who decide to specialize or earn additional certifications (like becoming a Certified Public Accountant) can command even higher salaries.

Speaking of the industry, even this plays a major role in the salary of a tax accountant. Those working in management, technical consulting services, or finance, earn the highest median pay. On the other hand, tax accountants who work for the government or in education tend to earn less.

An additional factor influencing tax accounting salary is the incorporation of technology in the work process. Modern Accountants are required to work with various accounting software. Proficiency in software like QuickBooks Online Asset Management is almost a pre-requisite in today’s time. This not only increases efficiency in managing clients’ assets but also helps accountants demand a higher salary.

In conclusion, the tax accounting salary varies based on multiple factors like geography, experience, industry, and knowledge of specific software and tools. So, when considering a career in tax accounting or negotiating a salary, be sure to consider all of these factors.