Accounting is riding a steady wave of tax prep work and individual and business tax consulting, according to a new survey — but challenges loom in the form of pricing questions (and intense internal self-doubt on the part of preparers) and navigating a landscape of retiring colleagues and price-shopping clients.
The 2025 national fee survey from the National Association of Tax Professionals shows that most tax pros charge within a common range depending on the complexity of the return.
- Most tax preparers set 1040 pricing using a structured approach. Nearly half establish a minimum fee and then adjust the price based on the complexity or value provided.
- Pricing is influenced by credentials, market size, firm focus and experience. On average, Enrolled Agents and CPAs charge more than their non-credentialed peers.
- Most preparers are adjusting prices regularly and transparently, and 83% raise fees every one to two years, typically 6% to 10%.
- Rates vary by client community sizes. The average base 1040 (plus the three common schedules) costs $185 in communities of fewer than 10,000 versus $233 in communities of 50,000-plus, and common add-ons for individuals also run higher in larger areas (e.g., Schedule A $53-$61, Schedule C $123-$135; and Schedule D $56-$66).
One result that surprised Chris Smith, president of the Virginia NATP Chapter and owner of Smith Tax & Accounting? "How [little] some folks still charge," he said.
The bread and butter of tax
Tax prep constitutes 65% of the average practice's revenue, supplemented by bookkeeping (12%), amendments (6%) and payroll (4%). Firms report earning most of their income during the regular tax season (February to April, 64%) and during extended tax season (May to October, 21%), with the remaining 15% coming in the off-season (November to January). The vast majority (87%) of firms have a large number of returning clients.
Almost half (48%) of respondents charge a minimum fee plus cost based on complexity. Half of respondents indicate their minimum fee is $150 to $350, and more for schedules. Most (83%) respondents increase their fees annually to every two years, with inflation and, a distant second, a desire to stop giving away work for the above cited reasons.
"I was surprised that our pricing was as close to the average for the Midwest," said Melissa Bowman, an EA and owner of Rainbow Accounting Services, in Gettysburg, Ohio. "Then I realized that the pricing in the survey was for only the 1040. "In [this state], we also complete state, school and, quite often, city returns. So my deduction from that was that we were leaving money on the table once you consider the additional returns."
More than half (54%) of those surveyed charge for any state return; 18% didn't charge an additional fee for any state returns when they prepared the federal return. For business forms, the average minimum fee charged is $634, with additional fees based on the complexity of the form. Half of respondents indicated their minimum fee is $350 to $850.
Getting paid for tax prep
Preparers attack this chore in various ways:
- Almost two-thirds (63%) expect payment when work is completed but before it's e-filed or mailed; 27% expect payment when the return is completed and filed or emailed; 6% charge a retainer.
- Seven percent of respondents charge a set hourly rate, with half of all preparers falling between $129 and $250 per hour. The average set dollar rate per hour is $182 this year, up from $179 in 2023.
- Eighteen percent of preparers reported preparing fewer returns last year, but more than half (51%) of those who saw a decline did so intentionally as they're phasing out their business. Growing practices outnumbered static by 48% to 37%. Other factors in the decline of 1040 prep included doing fewer forms because of preparers' higher specialization and the availability of DIY software to the public.
'Not one client left'
Tax pros reported that their pricing decisions are most strongly influenced by the uniqueness of their expertise (69%), followed by prevailing market rates (52%) and how their fees compare to others (42%). When determining value for clients, the complexity of the situation, time and effort and their expertise were the leading factors cited.
Respondents are nearly split between charging a base fee plus the additional hours needed to prepare a form (48%) and a set fee for each form (39%).
"Be firm in your pricing," said Bowman. "As tax professionals, the majority of us do not see our own value because knowledge is intangible. Knowledge is our value but how do you go about measuring that? Staying in contact with other tax professionals, whether it be through Facebook groups, membership organizations or just other professionals in your area, will help you see that value."
"Raise your prices every year, even if it's just 2 or 3%," she continued. "Clients are used to everything else increasing in price. Have an answer for when a client voices their opinion, such as, 'Our office spent hours on continuing education the past year so that we can make sure you pay the least amount of tax as is legally possible,' or 'The IRS has increased our due diligence requirements; therefore, we have more to do with each return.' Even, 'New federal laws require me to increase and add several security measures to protect your privacy.'"
Fees don't have to be "a major conversation," Smith added: "I've adopted an approach that states, 'Here is my fee; if you don't think we're a good fit, you're free to go elsewhere.' Clients threaten to leave often, but they return each year. The decreasing number of preparers makes this a sought-after skill, less available than before. I've also dismissed clients over constant arguing about fees, [but] it seems like five leave and I gain 10 in return."
High-volume practices built around 1040s with common schedules tend to charge less per return, relying on efficiency and throughput. Firms that primarily handle business returns usually command higher fees for those engagements and may price individual returns higher as well, reflecting their specialization and desire to reserve capacity for business clients.
Credentialed preparers, especially CPAs and EAs, tend to charge more for 1040 work because clients are paying for advanced expertise, specialization and the added risk/liability these practitioners manage. The 2025 NATP Fee Study shows the average fee for a base Form 1040 (Schedules 1-3) is $280 for CPAs and $228 for EAs, versus about $185 for non-credentialed preparers.
More than a third of preparers (37%) discuss fees after the return is completed, and a similar number (34%) discuss fees before the return is completed. Forty-one percent of preparers have no concerns about discussing fees with clients, but 40% are hesitant to do so.
"If our increase is going to be across the board and more than 5%, we're proactive in giving every client a letter or notice explaining the range of increase at the very first contact," Bowman said. "We also approach this in a professional manner in the letter, telling them that we understand if they choose to do something else for their tax preparation, and we will do everything in our power to make the transition to a new professional as smooth as possible."
Bowman has had significant price increases two times since the 2020 tax season, between 12% and 20% across the board.
"Not one client left because of pricing," she said.
Growth and retirement
What's the best way for preparers to take advantage of the apparently increasing retirement of preparers?
"Make improvements every year so you can take on more clients without sacrificing service," suggested Bowman. "We offer a referral discount to our clients who send others to us. Always look for ways to improve your workflow using seminars, webinars or reaching out to other professionals. The lack of professionals is also another reason to keep your pricing strong."
Respondents primarily communicate value by providing detailed explanations of services and highlighting potential tax savings or financial benefits, with fewer (only 15%) relying on credentials or client success stories.
The rising number of retiring preparers "enables charging higher fees with little option for clients to choose others. There's always someone cheaper out there, but as usual, you get what you pay for," Smith said. "Can you afford not to have me?"
The 48% who indicated growth in their firms were asked to identify which factors had a significant impact on their growth: They cited increases in the number of returns prepared (78%), tax consulting (48%); bookkeeping (38%); tax representation (32%); financial planning (23%); and payroll (21%).
Relative few preparers — just 6% — had work that went unbilled last year. Among those respondents, more than a third simply billed clients who didn't pay; in 18% of cases, preparers didn't want to add friction to the client relationship; in 9% of cases, preparers didn't have time to create and/or send an invoice. Almost half (44%) involved a child, student, friend and/or a family return, while 42% were IRS/state correspondence, and a third were tax planning.
The NATP Fee Study, conducted every other year, contains more detailed information on each category of questions.
