How Much Does a Tax Specialist Make in 2025?
Tax specialists, also known as tax preparers, are accounting professionals who primarily represent clients to perform tax services and audits, especially during tax season. They determine how much is owed in taxes and collect tax from businesses and individuals on behalf of the federal, state, and local governments.
The U.S. Bureau of Labor Statistics (BLS) expects the number of tax specialist jobs to grow by only 2% over the next ten years. Although this is slower than the national average, it’s still forecasted to produce over 4,100 job openings every year from 2023 to 2033. Salary.com reports that the average salary of tax specialists in 2025 is $66,133 per year.
This guide presents an overview of tax specialist salaries, including salary data in every state and city in the US, key factors that influence them, and proven tips for increasing earnings.
What is the Average Tax Specialist’s Salary?
According to Salary.com, the average salary for tax specialists in the United States for 2025 is $60,133 per year.
2025 Average Salary for Tax Specialists: $60,133 per year ($32 per hour)
As of this writing, the average tax specialist income is $32 per hour, with hourly wages that can go up to $46 or down to $31. Meanwhile, the average weekly and monthly salaries for tax specialists are $1,523 and $6,600, respectively.
What is the Pay Range for a Tax Specialist?
Salary.com reveals that the salary range for tax specialists starts at $64,299 per year and can reach as high as $96,394. However, it’s also important to note that this salary range for tax specialists may vary and is heavily affected by key factors including education, level of experience, geographic location, and occupation demand.
Tax Specialist Salary Range: $64,299 per year ($31 to $46 per hour)
| Percentile | By Hour | By Week | By Month | By Year |
|---|---|---|---|---|
| 10th Percentile | $31 | $1,237 | $5,358 | $64,299 |
| 25th Percentile | $34 | $1,373 | $5,950 | $71,400 |
| 50th Percentile (Median) | $38 | $1,523 | $6,600 | $79,200 |
| 75th Percentile | $42 | $1,696 | $7,350 | $88,200 |
| 90th Percentile | $46 | $1,854 | $8,033 | $96,394 |
Salary.com also reported that the average total compensation received by tax specialists is $116,624. This already includes benefits and the average additional cash compensation such as bonuses, health insurance, and time off.
Tax Specialist Salary Factors
As previously mentioned, several factors can affect tax specialist salaries. These include experience, location, and skills. Let’s explore each of these in detail.
Years of Experience
The average salary for tax specialists, based on years of experience, ranges from $64,648 per year for entry-level tax specialists to $67,477 per year for expert-level tax specialists with 8+ years of experience.
| Levels | Years of Experience | Average Salary per Year |
|---|---|---|
| Entry Level Tax Specialist | <1 | $64,648 |
| Intermediate Level Tax Specialist | 1-2 | $65,328 |
| Senior Level Tax Specialist | 2-4 | $66,940 |
| Specialist Level Tax Specialist | 5-8 | $67,262 |
| Expert Level Tax Specialist | 8+ | $67,477 |
Place of Work
BLS reported that the specific workplace significantly influences tax specialist salaries. For instance, a tax specialist working in the federal government can earn as much as $60,960 in 2023. This figure is about 2.9% and 16.6% higher than the salaries of tax specialists in the state and local government sectors, respectively.
| Place of Work | Median Annual Salary |
|---|---|
| Federal Government | $60,690 |
| State Government (Excluding Education & Hospitals) | $58,950 |
| Local Government (Excluding Education & Hospitals) | $50,600 |
Skill Set
Tax specialists with certain in-demand skills are also in line to increase their salaries. For instance, the Real-time Job Posting Salary Data Report shows that a tax specialist with skills in tax compliance can earn up to 7.83% more than those without.
On the other hand, a tax specialist having tax return preparation and tax planning skills is more likely to land a job with 37.74% and 25.37% demand, respectively.
| Skill | Demand | Salary Increase |
|---|---|---|
| Tax Compliance | 16.82% | +7.83% |
| Tax Planning | 25.37% | +5.89% |
| Tax Accounting | 15.22% | +4.89% |
| Financial Statements | 9.34% | +4.84% |
| Tax Return Preparation | 37.74% | +3.88% |
| Life Insurance | 6.16% | +3.58% |
Tax Specialist Salary by City and State
A city or state must ensure compliance with the state minimum wage; therefore, the choice of location can also significantly impact the earning potential for this job title in the US. Talented and experienced tax specialists can take advantage of this information to identify the most strategic locations for both living and working.
Highest Paying States for Tax Specialists
Based on the Salary.com data, the District of Columbia offers the highest median annual wage for tax specialists in the United States, at $73,603.
- District of Columbia: $73,603 per year (or $35 per hour)
- California: $72,933 per year (or $35 per hour)
- New Jersey: $72,473 per year (or $35 per hour)
- Alaska: $72,013 per year (or $35 per hour)
- Massachusetts: $71,943 per year (or $35 per hour)
Tax Specialist Salary by State
| State | Average Annual Salary |
|---|---|
| Alaska | $72,013 |
| Alabama | $60,773 |
| Arkansas | $60,243 |
| Arizona | $64,413 |
| California | $72,933 |
| Colorado | $67,453 |
| Connecticut | $71,023 |
| District of Columbia | $73,603 |
| Delaware | $67,123 |
| Florida | $62,823 |
| Georgia | $63,943 |
| Hawaii | $69,103 |
| Iowa | $63,283 |
| Idaho | $61,703 |
| Illinois | $67,653 |
| Indiana | $64,143 |
| Kansas | $62,953 |
| Kentucky | $62,223 |
| Louisiana | $62,823 |
| Massachusetts | $71,943 |
| Maryland | $68,173 |
| Maine | $64,343 |
| Michigan | $65,273 |
| Minnesota | $67,653 |
| Missouri | $63,023 |
| Mississippi | $58,993 |
| Montana | $61,763 |
| North Carolina | $63,483 |
| North Dakota | $65,463 |
| Nebraska | $62,293 |
| New Hampshire | $67,253 |
| New Jersey | $72,473 |
| New Mexico | $60,973 |
| Nevada | $66,393 |
| New York | $70,493 |
| Ohio | $64,673 |
| Oklahoma | $61,173 |
| Oregon | $67,183 |
| Pennsylvania | $65,993 |
| Rhode Island | $69,033 |
| South Carolina | $62,423 |
| South Dakota | $59,453 |
| Tennessee | $61,233 |
| Texas | $64,743 |
| Utah | $62,823 |
| Virginia | $66,323 |
| Vermont | $64,873 |
| Washington | $71,283 |
| Wisconsin | $65,333 |
| West Virginia | $59,513 |
| Wyoming | $63,413 |
Highest Paying Cities for Tax Specialists
According to the Salary.com data, the city of San Jose, California is the highest-paying city for tax specialists with $82,983 per year or $40 per hour. Recent tax specialist salaries show that the 6 highest paying cities are as follows:
- San Jose, California: $82,983 per year (or $40 per hour)
- San Francisco, California: $82,653 per year ($40 per hour)
- Oakland, California: $80,673 per year ($39 per hour)
- New York, New York: $77,233 per year ($37 per hour)
- Queens Village, New York: $76,703 per year ($37 per hour)
- Paramus, New Jersey: $76,173 per year ($37 per hour)
Ways to Increase Your Salary as a Tax Specialist
Tax specialists have several opportunities to increase their salary by gaining more experience, improving in-demand skills, and exploring growth within the role.
- Develop a strong educational background: A tax specialist is typically required to have a bachelor’s degree in accounting or other related fields such as business and finance. Tax specialists aiming to work for the Internal Revenue Service (IRS) are required to earn a bachelor’s degree in accounting, specialized experience, and a CPA certificate.
- Finish relevant training: Tax specialists, especially newly hired ones, generally undergo on-the-job training lasting from 1 month to 1 year. This work experience gives them valuable insights into their roles and responsibilities, as well as staying updated with income tax laws, tax codes, and tax collection procedures.
- Gather work experience in other occupations: Some employers like to hire tax specialists and enrolled agents with other experience working in accounting firms as bookkeepers, accountants, credit checkers, customer service representatives, and bill collectors.
- Pursue higher education: A tax professional may also expand his career path and increase his average salary through continuing education programs and then earn a master's degree.
- Gain essential core qualities: Having essential core qualities including analytical, communication, mathematical, organizational, and detail-oriented skills can make a good case for tax specialists to earn more.
- Know your worth: Negotiating your pay by researching market rates for your current position and experience can increase your salary. As of this writing, tax specialist salaries in the US range between $64,299 to $96,394 per year.
Average National Salaries by Source
As of March 6, 2025, data references from five major salary-reporting websites indicate that the national average salary for tax specialists in the US is $64,703 (unweighted).
SALARY.COM AVG. SALARY
$60,133/year
INDEED.COM AVG. SALARY
$53,457/year
GLASSDOOR AVG. SALARY
$76,117/year
PAYSCALE AVG. SALARY
$66,149/year
ZIPRECRUITER AVG. SALARY
$67,658/year
