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The differences between tax accountants and tax analysts can be seen in a few details. Each job has different responsibilities and duties. While it typically takes 2-4 years to become a tax accountant, becoming a tax analyst takes usually requires 1-2 years. Additionally, a tax accountant has an average salary of $62,142, which is higher than the $61,745 average annual salary of a tax analyst.
The top three skills for a tax accountant include CPA, tax audits and income tax returns. The most important skills for a tax analyst are tax audits, reconciliations, and tax compliance.
| Tax Accountant | Tax Analyst | |
| Yearly salary | $62,142 | $61,745 |
| Hourly rate | $29.88 | $29.69 |
| Growth rate | 6% | -7% |
| Number of jobs | 57,919 | 56,223 |
| Job satisfaction | - | - |
| Most common degree | Bachelor's Degree, 72% | Bachelor's Degree, 70% |
| Average age | 44 | 48 |
| Years of experience | 4 | 2 |
A tax accountant is an individual who works with clients to produce tax return documents that follow tax laws and regulations while keeping them updated on their return information. Tax accountants must determine tax strategies for their clients that may minimize or eliminate tax payments while arranging audits with taxation authorities. They prepare tax documents for different clients, including private companies, non-profit organizations, and private individuals. Tax accountants are also required to obtain a bachelor's degree in accounting and should understand business concepts.
A tax analyst specializes in managing and filing tax forms and tax returns, all while devising strategies to reduce tax payments legally. A tax analyst may work as a member of a company or independently. Moreover, in a company setting, the responsibilities of a tax analyst revolve around coordinating with different departments to obtain all necessary documentation and financial information, maintaining accurate and extensive records of all transactions, and resolving any issues or concerns. Furthermore, it is essential to remain updated with all the tax laws, all while adhering to the policies and regulations of the company.
Tax accountants and tax analysts have different pay scales, as shown below.
| Tax Accountant | Tax Analyst | |
| Average salary | $62,142 | $61,745 |
| Salary range | Between $45,000 And $83,000 | Between $43,000 And $87,000 |
| Highest paying City | New York, NY | San Francisco, CA |
| Highest paying state | New York | Maine |
| Best paying company | Pacific Investment Management Company LLC | Meta |
| Best paying industry | Finance | Technology |
There are a few differences between a tax accountant and a tax analyst in terms of educational background:
| Tax Accountant | Tax Analyst | |
| Most common degree | Bachelor's Degree, 72% | Bachelor's Degree, 70% |
| Most common major | Accounting | Accounting |
| Most common college | University of Pennsylvania | University of Southern California |
Here are the differences between tax accountants' and tax analysts' demographics:
| Tax Accountant | Tax Analyst | |
| Average age | 44 | 48 |
| Gender ratio | Male, 47.3% Female, 52.7% | Male, 42.9% Female, 57.1% |
| Race ratio | Black or African American, 8.2% Unknown, 3.9% Hispanic or Latino, 10.5% Asian, 15.5% White, 61.4% American Indian and Alaska Native, 0.5% | Black or African American, 13.1% Unknown, 3.4% Hispanic or Latino, 15.6% Asian, 11.1% White, 56.6% American Indian and Alaska Native, 0.3% |
| LGBT Percentage | 7% | 8% |