Tax Accountant Salary
Earnings for Tax Accountants in the United States come in at around $54K annually on average. The range in cash compensation to Tax Accountants (largely between $39K and $77K) includes potential earnings of $7K from bonuses, $4K from profit sharing, and commissions of $20K in exceptional cases. Earnings for this group are mostly affected by career length, followed by the specific employer and geography. The majority of workers are highly satisfied with their job. Women Tax Accountants who took the survey just slightly outnumber men. Not all workers are lucky enough to have benefits; in fact, one-fourth are without coverage. Medical insurance is claimed by a strong majority and dental insurance is reported by over one-half. The numbers in this rundown were provided by PayScale's salary survey participants.
Job Description for Tax Accountant
Tax accountants specialize in preparing and submitting tax documents for clients, which can include private individuals and private and public companies; these companies may include non-profits and government agencies, as well. Tax accountants often devise tax strategies to defer or eliminate tax payments, coordinate audits with various taxation authorities, and advise corporate management of taxation strategies. As such, they must understand and interpret tax law and occasionally explain its implications to clients.Read More...
Duties of tax accountants include preparing and filing taxes, preparing presentations and reports on tax situations, advising clients regarding how to minimize tax liability, and informing them of changes in tax regulations; overall, their goal is to ensure that their clients comply with all federal and state tax laws. They must be highly knowledgeable of business concepts and government regulations, detail-oriented, and comfortable working with numbers and financial data. Great written and verbal communication skills and superior customer service are also important.
Tax accountants must have a financial background and deep knowledge of the taxation process and tax law and be able to effectively communicate, in verbal or written form, this knowledge to their clients in "layman's' terms." Most tax accountants have a bachelor's degree in accounting or a similar financial field, and concentration in tax law is highly beneficial. Some employers may prefer those who have a master's degree and/or certifications such as Certified Public Accountant, Enrolled Agent, or Certified Financial Planner.
Tax accountants typically work during traditional business hours of the week, except around tax season when their hours may increase significantly. Tax accountants usually work in accounting offices, and their co-workers include other tax accountants, supervisors, company leaders, and their clients.
Tax Accountant Tasks
- Prepare tax returns and reports, maintain records, analyze and research complex tax issues.
- Provides support during audits.
- Ensure compliance with state and federal regulations.
- Analyze tax regulations and recommend policies that minimize tax burden.
Common Career Paths for Tax Accountant
Tax Accountants' salaries may rise greatly for those who assume a higher-end position such as a Senior Tax Manager. The average Senior Tax Manager brings home $123K per year. It is quite typical for Tax Accountants to transition into roles as Senior Tax Accountants or Tax Managers, where reported median earnings are $10K and $38K higher per year.
Tax Accountant Job Listings
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Popular Employer Salaries for Tax Accountant
Salary cannot be beat at PricewaterhouseCoopers, where median pay comes to $62K. The range seems somewhat confined, however; the lower end sits at $59K, and the higher end is not far away at $77K.
Popular Skills for Tax Accountant
Tax Accountants seem to wield many skills on the job. Most notably, skills in Tax Compliance, Financial Analysis, Tax Consulting, and Software Knowledge are correlated to pay that is above average, with boosts in pay of 5 percent. At the other end of the pay range are skills like Bookkeeping, Accounting, and Payroll Tax Compliance. Those familiar with Tax Compliance also tend to know Microsoft Excel.
Pay by Experience Level for Tax Accountant
Median of all compensation (including tips, bonus, and overtime) by years of experience.
Tax Accountants do not generally earn higher incomes from more experience in the field. Although individuals who have less than five years' experience earn $52K on average, people with five to 10 years benefit from a notably larger average of $62K. Tax Accountants claiming one to two decades of experience make an estimated median of $64K. Tax Accountants who have acquired more than two decades of experience generally do see greater compensation; their average income is approximately $71K.
Pay Difference by Location
Tax Accountants will find that San Francisco offers an impressive pay rate, one which exceeds the national average by 14 percent. Tax Accountants can also look forward to large paychecks in cities like Los Angeles (+11 percent), Chicago (+10 percent), Baltimore (+9 percent), and Boston (+9 percent). Those in the field find the lowest salaries in Milwaukee, 9 percent below the national average. Employers in St. Louis and Nashville also lean toward paying below-median salaries (7 percent lower and 2 percent lower, respectively).
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Key Stats for Tax Accountant
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