How Much to Charge for Tax Preparation Services

Most independent tax preparers set their fees the same way: look at what a competitor down the street charges, round to the nearest ten, and call it a schedule. The problem is that number came from somewhere equally unexamined. According to the NATP 2025 Fee Study, the industry has seen a 23 percent fee increase since 2021. Preparers who did not actively track that shift are now priced significantly below the market they serve.

This guide is for preparers, not taxpayers. The question it answers is: what should you charge? It covers national benchmarks by form type and schedule, the geographic and credential factors that move rates up or down, the four pricing models in active use by independent preparers today, and a starting-point fee template you can adapt to your own market. Every dollar figure is sourced and attributed. Nothing here is Americas Tax's recommended rate; these are third-party benchmarks you use as a reference to build your own defensible fee schedule.

If you are looking for data on what a tax preparer can earn overall, including per-return income models, bank product revenue, and the path to a full-time practice, that question is answered separately in the ATP tax preparer income guide. This page focuses specifically on the fee side of the equation: how to set the right rate in the first place.

What Tax Preparers Charge: National Benchmarks

Two primary sources publish fee survey data for independent tax preparers: the National Association of Tax Professionals (NATP) and the National Society of Accountants (NSA). These sources use different methodologies and different survey years. Where data from both sources appears on this page, each figure is labeled with its origin so you can evaluate them separately.

Base Form 1040 Fees

The NATP 2025 Fee Study shows the average base 1040 fee varying primarily by community size and credential. The range below reflects those two variables at their measured endpoints.

For comparison, NSA 2020-2021 survey data, adjusted for inflation to approximate current purchasing power, places the average Form 1040 with standard deduction at approximately $281. The NATP and NSA figures are not directly comparable because the surveys differ in methodology, respondent pool, and year; treat both as reference ranges rather than a single authoritative number.

Schedule Add-On Fees

Most preparers price the base 1040 as a floor and add schedule fees on top of it. The ranges below draw from NATP 2025 Fee Study data and, where labeled, from NSA 2020-2021 survey data adjusted for inflation to approximate current purchasing power.

The wide spread on Schedule C reflects real-world variation. A sole proprietor with a single revenue stream and no depreciation is a different job than a contractor with a vehicle, home office, equipment, and 1099s from eight clients. Many preparers tier their Schedule C fee by complexity or by actual time, rather than charging a single add-on rate for all Schedule C clients.

Business Return Fees

The market ranges below for business returns are drawn from NSA 2020-2021 survey data, adjusted for inflation to approximate current purchasing power. CPA Trendlines reported a 10.8 percent year-over-year billing rate increase in 2026 for tax preparation services broadly; that figure covers the broader CPA and firm market rather than exclusively independent EROs, and is noted here as context for the direction of business return pricing rather than as a direct benchmark.

Business returns should be treated as minimum starting fees rather than flat rates. A Form 1120S with one shareholder, clean bookkeeping, and no carryforwards is a meaningfully different engagement than the same form with five shareholders, mid-year equity transactions, and depreciation schedules requiring reconciliation. Most preparers set a minimum for the entity type and then tier or hourly-bill above that floor.

State Returns and Multi-State Returns

NSA 2020-2021 survey data, adjusted for inflation to approximate current purchasing power, suggests state return add-on fees typically fall in the $75 to $150 range for a single state return prepared alongside the federal. Multi-state returns require additional time for each state's conformity adjustments and apportionment calculations. Most preparers bill each additional state at the same add-on rate or add a multi-state complexity surcharge for clients with three or more state filings.

Preparers who serve clients in states with complex conformity rules (California, New York, Massachusetts), or who frequently handle part-year resident returns, often set their state add-on at the higher end of the range to reflect actual preparation time. A $75 state add-on assumes the federal return is complete and the state follows federal closely. That assumption breaks down quickly for clients who split residency, work in multiple states, or have state-specific adjustments.

How Your Location Affects Your Rates

The NATP 2025 Fee Study breaks fee averages by community size, which is the most useful geographic variable for independent preparers because it reflects cost of living, local wage expectations, and the competitive density of the market around you.

*Preparers in high-cost metro areas such as New York, San Francisco, Los Angeles, and Chicago typically charge 40 to 60 percent above the national average, based on geographic fee patterns reported by NATP. This is an estimate derived from NATP geographic data and is not a directly published NATP figure.

These figures reflect averages across all credential levels in each market. In practice, your individual fee position depends on community size combined with your credential status. A non-credentialed preparer in a mid-size market will generally price closer to the community-size baseline. A credentialed preparer in the same market can often command a rate closer to the next-tier average, particularly for clients with complex returns who are choosing on the basis of credential rather than price.

Rural and small-town markets deserve a separate note. The $185 average in communities under 10,000 sounds like the low end of the scale, but in markets where competition is thin and client relationships are sticky, a $185 average across 300 returns still generates $55,500 in gross revenue. Overhead in a home-based rural practice is proportionally lower than in urban settings, and client retention tends to run higher because the switching cost for the client (finding a trusted preparer who knows their situation) is meaningful in a market with few alternatives.

Credential Premium: What EA and AFSP Status Are Worth in Fees

The NATP 2025 Fee Study gives the most direct look at credential-based fee differences. Non-credentialed preparers average $185 for a base 1040. Enrolled Agents average $228. CPAs average $280. That $43 difference between non-credentialed and EA rates is per return, which compounds materially across a full-season practice.

The EA credential also unlocks IRS representation work, which is billed separately from preparation and typically runs at hourly rates well above preparation fees. That revenue stream does not appear in a per-return benchmark table at all, because it is a different service category. For preparers who work with clients facing audits, collections notices, or back-tax situations, representation work can be a meaningful share of annual revenue. For a full look at the EA income picture, see ATP's enrolled agent career guide.

AFSP and the Positioning Question

The Annual Filing Season Program (AFSP) is the IRS voluntary continuing education credential for non-credentialed preparers. Completing the annual requirements earns an IRS Record of Completion and a listing in the IRS PTIN directory, plus limited representation rights for returns you prepared.

Preparers who hold the AFSP designation typically position their fees between non-credentialed and EA rates, though no published benchmark exists for AFSP-specific pricing. The credential's fee value is indirect: it signals to prospective clients that you meet a formal annual standard and appear in an IRS-maintained directory. Whether that translates into a specific fee premium depends on your market and how you communicate the credential's meaning to clients. Most preparers treat AFSP as a stepping stone toward the EA rather than as a permanent fee-positioning tool.

Choosing a Pricing Model

The NATP 2025 Fee Study identifies four pricing models in active use among independent preparers. Each has a different adoption rate, and each handles complexity and client mix differently. The right model depends on how consistent your client base is and how much you want administrative overhead to affect your workflow during peak season.

Minimum Fee Plus Complexity (48% of Preparers)

The most widely adopted model, used by 48 percent of preparers per NATP data, is a minimum base fee with complexity-driven increases above that floor. The minimum covers the simplest return you would accept; everything more complex adds to it. That complexity adjustment can be formalized (a defined list of per-schedule add-ons) or judgment-based (you review the organizer and quote accordingly).

This model is dominant for a practical reason: it protects you from undercharging on the outlier returns. A client who books expecting a $225 standard return and arrives with a stock sale, a rental property, and self-employment income is not a $225 job. A minimum-plus-complexity structure gives you a defensible basis for the higher quote rather than forcing you to choose between undercharging and having an awkward conversation.

The tradeoff is that you need to quote per-client rather than publish a single number. For preparers who use a client organizer or intake checklist, the complexity assessment happens naturally during document collection.

Per-Form A La Carte Pricing

Thirty-nine percent of preparers use flat per-form pricing, according to the NATP 2025 Fee Study. You publish a schedule: base 1040 at $X, Schedule A add-on at $Y, Schedule C add-on at $Z, and so on. The client's fee is the sum of the forms their return requires.

The appeal is transparency. Clients can calculate their own estimate, which reduces fee-related friction at pickup. It also makes your pricing easy to explain and easy to post publicly, which matters for new clients evaluating you against competitors.

The risk is that per-form pricing treats all Schedule C clients the same, all rental property clients the same, and all capital-gains clients the same. If your practice skews toward simpler returns, flat per-form pricing is usually fine. If you serve a mix of simple and complex clients within each schedule type, you may want to build a complexity tier into your per-form structure rather than treating all Schedule C returns as a single flat add-on.

Flat Fee Per Return

A small share of preparers charge a single flat fee per return regardless of complexity, which works well for practices with an extremely homogeneous client base. If your clients are predominantly similar (for example, a niche practice focused on one-W-2 hourly workers with no investments or self-employment), a flat fee eliminates per-client quoting entirely.

Flat-fee-per-return is rarely practical as a general approach because it either undercharges complex returns or overcharges simple ones. Preparers who use it successfully tend to have deliberately narrowed their client intake to a specific complexity band and decline returns outside that band.

Hourly Billing (7% Adoption)

Only 7 percent of independent preparers use hourly billing as their primary pricing model, per the NATP 2025 Fee Study. When they do, the NATP data shows an hourly rate range of $129 to $250, with an average of $182 per hour.

Hourly billing is most defensible for business returns and IRS representation work, where preparation time genuinely varies in ways that are hard to predict upfront. For individual 1040 preparation, hourly billing creates client anxiety around the clock during the return and complicates fee communication. Most preparers who bill business returns hourly still use per-form pricing for individual returns, reserving the hourly model for the return types where scope variance is highest.

If you use hourly billing, the $182 NATP average and $129 to $250 range give you a market anchor. Your actual hourly rate should reflect your credential level, your market, and what your clients are accustomed to paying for comparable professional services.

Building Your Fee Schedule: A Starting-Point Template

A typical fee menu for an independent preparer might look like the following. This is a starting-point structure built from the market ranges in this guide; it is not Americas Tax's recommended pricing and it is not what Americas Tax charges. Adjust every figure to your credential level, community size, and competitive market before you publish anything to clients.

Industry survey data shows that 75 percent of preparers charge extra for disorganized or incomplete paperwork, with an average surcharge of $145. If you are not currently charging for disorganized documents, this is one of the quickest adjustments most independent preparers can make to increase per-return revenue without raising base rates.

One line item that belongs in your fee calculation but does not appear in client-facing schedules is software cost. Your preparation software is a real cost that should factor into your fee floor. For current TaxWise pricing as an example of what that cost line looks like, see ATP's software page.

When and How to Raise Your Fees

The NATP 2025 Fee Study is direct on this: 83 percent of independent preparers raise their fees every one to two years, and the typical increase runs 6 to 10 percent. Fees across the industry rose 23 percent from 2021 to 2023, according to NATP 2023 Fee Study data reported by Accounting Today in August 2023. A preparer who held fees flat over that period is now operating at a material discount relative to peers.

The case for a regular fee increase is not just about inflation. Preparation software costs, continuing education requirements, and the market rates clients encounter when they shop around all increase over time. A fee that was competitive in 2022 may now be below market in your area. Staying current with NATP fee study data each year is one of the simplest ways to avoid drifting below market without realizing it.

When to Increase

The two best moments to announce a fee increase are late summer (August or September, after extensions are done and before clients start thinking about the next season) and immediately after completing a significant credential upgrade. An announcement tied to a credential upgrade gives clients a concrete reason for the change: you have invested in additional qualifications that directly benefit their return.

The worst time to increase fees is mid-season. Raising rates in February or March, when clients are already in the appointment queue, creates friction and comparison shopping at the exact moment you are busiest. If your fees need adjustment and you missed the fall window, wait until the following August rather than mid-filing-season.

How to Communicate an Increase

Direct, factual, brief. A single sentence in your seasonal announcement email is sufficient for most returning clients: "Preparation fees will increase by [X] percent for the 2026 season." No lengthy justification, no apology. Clients who have filed with you for multiple years understand that professional service fees rise annually. The clients most likely to leave over a 6 to 10 percent increase are the clients who were already shopping on price, not the clients who return because they trust your work.

One practical note: if your increase is larger than 10 percent because you are correcting a fee that has been flat for several years, spreading it over two seasons is less disruptive than a single large adjustment. A 10 percent increase followed by another 8 percent increase the following year achieves the same correction with significantly lower client attrition risk.

Additional Revenue Beyond Preparation Fees

A tax preparation fee schedule covers the core preparation and filing service. Independent preparers who want to grow beyond that floor have three primary revenue categories to add: bank products and refund transfer services, amended returns and prior-year work, and IRS representation.

Bank Products and Refund Transfers

A bank product (Refund Transfer) lets your client pay your preparation fee from their refund rather than out of pocket. For the preparer, this arrangement does three things that directly affect total revenue: you earn an ERO service fee on each funded return, you eliminate the bad-debt risk of clients who do not pay, and you increase your close rate with clients who cannot pay upfront.

Industry figures indicate approximately $10 per funded return flows to the ERO as a service fee. On a 300-return practice where 40 percent of clients use a bank product, that is roughly $1,200 in direct additional revenue. The bad-debt elimination effect is typically larger: preparers without guaranteed collection report losing approximately 10 percent of revenue to uncollected fees, which on a $75,000 gross practice is $7,500 per year. Bank products address both. These are approximate industry figures; actual amounts vary by bank product provider and agreement terms.

Amended Returns and Prior-Year Work

Amended returns (Form 1040-X) and prior-year returns are billable work that most clients cannot do themselves. Typical market practice is to price amended returns at the base rate for the original return plus a surcharge for the additional time required to reconstruct what changed and why. Prior-year returns follow a similar logic: price them at the current-year rate plus a surcharge for the older-year complexity and any software or form access costs.

A client who comes in for an amended return is almost always a client who will return for future preparation work. Pricing amendments aggressively is counterproductive. Price them to cover your actual time, communicate clearly why the fee is higher than a standard return, and treat the engagement as a retention opportunity.

IRS Representation (EA Required)

Enrolled Agents hold unlimited representation rights before the IRS, meaning they can represent any client on any federal tax matter: audits, appeals, collections, and installment agreement negotiations. This is billed at hourly rates substantially above preparation fees, typically $150 to $300 per hour depending on the complexity of the matter and the market. For preparers who hold the EA credential, representation work is a year-round revenue stream that does not compete with the seasonal calendar. Clients who face IRS notices or audit letters typically want the same person who prepared their returns to handle the response. The EA who built the client relationship during filing season is already positioned for that work.

For a complete picture of how preparation fee revenue combines with bank product revenue and year-round service income to build a full-time independent practice, see the ATP tax preparer income guide.

Frequently Asked Questions