How Much Do Tax Preparers Make In Texas?

Whether tax prep will be your super part-time gig, or you're curious about the tax prep industry and how tax prep professionals make, it will be helpful to look into how much tax prep professionals make, as well as what tax preparers charge, by the hour or by the job.

Average Tax Preparer Salary In Texas

Tax preparers, as a profession, make a reasonable salary, but it varies greatly by state, and as previously mentioned, this industry has a very wide salary range by skill set and tax prep certification. A tax prep professional in Texas can make anywhere from $35,000 dollars to $55,000 dollars a year.

What can impact your salary as a tax preparer in Texas?

  • Experience: Entry-level tax preparers will make less than the experienced tax prep professionals.

  • Location: If you practice in the larger Texas cities (Houston, Austin, Dallas, San Antonio, etc.), you'll earn more due to the more significant demand for tax prep professionals.

  • Time of year (Seasonality): Texas tax preparers earn more during tax prep season (January – April) after which the tax prep industry lowers or eliminates their salary until the next tax prep season.

What about Texas tax preparers that hold Enrolled Agent or CPA designations?

Tax professionals that hold CPA or EA designations will always make more than a tax preparer without a CPA or EA. However, with a tax law specialty, any CPA can make $60,000 dollars to or over $100,000 dollars a year in Texas. Additionally, with experience, CPAs in larger Texas cities and larger accounting firms can earn over $100,000 dollars a year.

On the other hand, Enrolled Agents or EA, having been schooled and licensed by the IRS, also represent taxpayers at a salary of $50,000 to $80,000+ (varies by level of experience and clientele).

These practitioners provide services with more complexity such as preparation of complicated returns, and audit representation.

Self-Employed Tax Preparers

Numerous tax preparers in Texas are self-employed and operate their own tax practices. The income from self-employment is a function of:

  • Volume of clients

  • Types of services offered

  • Pricing system

  • Overall marketing

Seasonal tax preparers tend to have hundreds of clients, which they service from January to April. Based on the averages from $200 to $500 + for each return (this is common for small business and individual filings), the gross income increases substantially. However, expenses such as office space, software, and tax levies diminish the income.

Self-employed successful tax preparers who provide services all year (tax planning, advisory, bookkeeping) generally make more than those who are seasonal.

Want to become a tax preparer? Credentials like EA, and CPA, coupled with year-round services will drive your income and career mobility.

George Dimov