Tax preparers who work as employees earn a median of about $49,010 a year, according to the U.S. Bureau of Labor Statistics. The top 10% earn more than $98,000. Independent tax preparers can earn less or much more, because their income depends on how many returns they file, what they charge and how much of each fee they keep. Under the Nexus United Inc. model, preparers keep 70% of what they charge clients and pay nothing upfront for software.
The salary question has two very different answers. If you work for a chain like H&R Block or Jackson Hewitt, you are usually paid by the hour or by commission. If you run your own book of clients, you set your own price and your income grows with every return. This guide breaks down both paths, shows the math behind a fee split and explains how to raise your earnings each season.
Tax Preparer Pay: What the Data Shows
| Measure | Annual pay | Hourly pay |
|---|---|---|
| Bottom 10% | $29,170 | $14.02 |
| Median | $49,010 | $23.56 |
| Mean (average) | $58,160 | $27.96 |
| Top 10% | $98,810 | $47.50 |
Source: U.S. Bureau of Labor Statistics, Tax Preparers, May 2023. These figures cover about 81,650 employed tax preparers. They exclude self-employed preparers and seasonal workers who earn most of their income in a few months. Florida has about 3,870 employed tax preparers, the fourth most of any state.
How Tax Preparers Get Paid: 4 Common Models
| Pay model | How it works | Upfront cost to you | Income potential |
|---|---|---|---|
| Hourly employee | Paid per hour, often seasonal | None | Limited by hours and pay rate |
| Commission at a chain | A share of fees, sometimes on top of a base wage | None | Moderate, set by the company |
| Fully independent | You keep 100% of fees but pay all costs | High: software, EFIN, bank setup, marketing | High, with high risk |
| Network or service bureau split | You keep a set share of fees; the partner covers software and e-file setup | Low or none | Grows with every return you file |
The right model depends on your goals. If you want a steady paycheck, a chain job may fit. If you want to build your own client base without a big investment, a fee split is often the best first step.
How a 70/30 Fee Split Works
In a 70/30 split, you keep 70% of the fee you charge each client. The partner keeps 30% and provides the software, e-file setup, and support. You do not pay for software before the season starts.
The formula is simple:
Your earnings = Number of returns x Average fee x 70%
| Returns per season | Average fee | Total fees | You keep (70%) |
|---|---|---|---|
| 75 | $200 | $15,000 | $10,500 |
| 150 | $250 | $37,500 | $26,250 |
| 300 | $275 | $82,500 | $57,750 |
| 500 | $300 | $150,000 | $105,000 |
These are examples to show the math, not promises. Your results depend on your market, your prices, and your client base.
What Affects How Much a Tax Preparer Makes?
- Number of returns: volume is the biggest driver of income for independent preparers.
- Average fee: a simple return with a W-2 earns less than a return with a business, rental property or multiple states.
- Credentials: Enrolled Agents and CPAs usually charge more than preparers without credentials.
- Location: fees tend to be higher in large cities than in rural areas.
- Experience and reputation: returning clients and referrals lower your marketing costs.
- Extra services: bookkeeping, payroll, tax resolution, and business setup add year-round income.
Our income tax preparation course helps new preparers handle more complex returns, which supports higher fees.
Seasonal vs. Year-Round Income
Most returns are filed between late January and April 15. Many preparers earn the majority of their yearly income in those 12 weeks. You can smooth your income by adding extensions, amended returns, small business clients, and bookkeeping in the off season.
Taxes on Your Tax Preparer Income
If you work as an independent preparer, you are self-employed. You may receive Form 1099-NEC for your earnings, and you pay self-employment tax on your profit. Learn what that form means in our guide to Form 1099-NEC.
Because no tax is withheld, plan to make estimated quarterly tax payments. You can also lower your tax bill with business deductions such as software fees, a home office, mileage, and continuing education. See our list of tax deductions for small businesses.
7 Ways to Earn More as a Tax Preparer
- Raise your prices once a year. Most preparers increase fees every one to two years.
- Charge by complexity, not a flat fee. Price each form and schedule.
- Offer bank products. Clients who can pay from their refund are more likely to say yes.
- Ask every client for referrals. Reward referrals after the new client files.
- Add business returns and bookkeeping. These clients pay more and stay longer.
- Earn a credential. The Annual Filing Season Program or Enrolled Agent status builds trust.
- Keep more of each fee. Choose a model with low upfront costs and a fair split.
Earn More With Nexus United Inc.
Nexus United Inc. helps independent preparers grow income without a large investment:
- Full tax software and EFIN setup with zero upfront fees
- Pay per return, so costs only come when you earn
- Keep 70% of everything you charge your clients
- Bank products, training, and support all season
See the benefits of a tax preparer network; call (855) 639- 8740 or try our network.
Frequently Asked Questions
How much do tax preparers make per return?
It depends on the return and the market. Simple returns usually cost less than returns with a business, rental property, or multiple states. Under a 70/30 split, you keep $175 of a $250 fee.
How much do tax preparers make in a season?
Income varies widely. An independent preparer who files 150 returns at an average fee of $250 and keeps 70% earns about $26,250 for the season.
Do self-employed tax preparers make more than employees?
They can. Independent preparers set their own prices and keep a larger share of each fee. They also carry more risk and pay their own costs and self employment tax.
How much does a tax preparer make in Florida?
Florida is one of the top states for tax preparer jobs, with about 3,870 employed preparers in May 2023. Pay depends on your city, your pricing and how many returns you file.
What is a 70/30 split for tax preparers?
It means you keep 70% of what you charge your clients and your partner keeps 30%. In return, the partner provides software, e-file setup and support.
Is tax preparation a good side hustle?
Yes. Most of the work happens from January to April, so many people prepare taxes alongside another job and earn extra income each year.
