Since taxation touches the activities of just about every individual and corporation, tax accountants are needed in a variety of settings. While tax accountants are in short supply, and the demand for them is expected to grow, the sheer number of different places they work and clients they may have, along with their experience and education levels, can lead to wide disparities in tax accountants’ salary.
The Occupational Outlook Handbook, published by the Department of Labor’s Bureau of Labor Statistics, states that jobs in the accounting field are projected to grow in the future. This is mainly because accounting laws and regulations, including tax laws, are constantly changing. Additionally, since the public’s appetite for new taxes is low, governments are increasingly enforcing existing tax laws and regulations to increase revenue. This will make for an additional source of jobs for tax accountants as they help individuals and businesses comply with and mitigate the effects of stringent tax enforcement.
Additionally, taxation is a specialized field within accounting, meaning that not every accountant is qualified to advise on tax matters. Because of the increasing demand for tax accountants relative the general population and even relative to the number of people in the field, tax accountant salary is projected to remain higher than the salary for similar white-collar jobs. In particular, the Occupational Outlook Handbook puts the nationwide median salary for accountants and people in similar professions at approximately $60,000 annually.
However, this $60,000 figure cannot be assumed to be guaranteed for anyone in the tax accounting field. For example, the geographic location in which one works as a tax accountant will have a huge impact on one’s salary, with areas in which there is a higher cost of living tending to have higher-paying tax accounting jobs. Additionally, while one can learn to become a tax accountant on the job without a bachelor’s or even an associate’s degree, many employers pay degreed tax accountants higher salaries, especially at the beginning of their careers. This is partly true because the cost of on-the-job training for employees with strong educational backgrounds is significantly lower. Finally, certification as a Certified Public Accountant can also lead to an increased salary premium, due to the additional duties a tax accountant with this certification becomes qualified to perform.
A final significant factor in determining a tax accountant’s salary is the kind of office they work in. A tax accountant at a “”Big 4″” accounting firm can be presumed to be at the top of the salary scale, while a tax accountant who works mainly with non-profit clients can be expected to make significantly less money. While in general tax accountancy can be a lucrative profession, there are many factors that can influence salary levels within this particular field.”