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Job outlook for tax analysts in the United States
Tax analyst job growth summary. After extensive research, interviews, and analysis, Zippia's data science team found that:
The projected tax analyst job growth rate is -7% from 2018-2028.
About -3,700 new jobs for tax analysts are projected over the next decade.
Tax analyst salaries have increased 7% for tax analysts in the last 5 years.
There are over 33,831 tax analysts currently employed in the United States.
There are 56,223 active tax analyst job openings in the US.
The average tax analyst salary is $61,745.
Are tax analyst jobs in demand?
Tax analyst job and salary trends over time
Tax analyst jobs over time
Tax analyst job growth rate over time
| Year | # of jobs | % of population |
|---|---|---|
| 2021 | 33,831 | 0.01% |
| 2020 | 33,293 | 0.01% |
| 2019 | 33,532 | 0.01% |
| 2018 | 33,362 | 0.01% |
| 2017 | 33,520 | 0.01% |
Average tax analyst salary over time
Tax analyst salary by year
| Year | Avg. salary | Hourly rate | % Change |
|---|---|---|---|
| 2025 | $61,745 | $29.69 | +1.4% |
| 2024 | $60,913 | $29.28 | +0.8% |
| 2023 | $60,413 | $29.04 | +2.5% |
| 2022 | $58,960 | $28.35 | +2.1% |
| 2021 | $57,772 | $27.78 | +1.2% |
Tax analyst jobs by state
Most common states for tax analysts
| Rank | State | Population | # of jobs | Employment/ 1000ppl |
|---|---|---|---|---|
| 1 | District of Columbia | 693,972 | 447 | 64% |
| 2 | Massachusetts | 6,859,819 | 1,112 | 16% |
| 3 | Virginia | 8,470,020 | 1,259 | 15% |
| 4 | Maryland | 6,052,177 | 928 | 15% |
| 5 | Colorado | 5,607,154 | 829 | 15% |
| 6 | Minnesota | 5,576,606 | 826 | 15% |
| 7 | Delaware | 961,939 | 136 | 14% |
| 8 | Illinois | 12,802,023 | 1,715 | 13% |
| 9 | Connecticut | 3,588,184 | 480 | 13% |
| 10 | Iowa | 3,145,711 | 399 | 13% |
| 11 | Rhode Island | 1,059,639 | 140 | 13% |
| 12 | Missouri | 6,113,532 | 720 | 12% |
| 13 | Utah | 3,101,833 | 361 | 12% |
| 14 | New Hampshire | 1,342,795 | 158 | 12% |
| 15 | California | 39,536,653 | 4,218 | 11% |
| 16 | Arizona | 7,016,270 | 746 | 11% |
| 17 | Oregon | 4,142,776 | 438 | 11% |
| 18 | Nebraska | 1,920,076 | 203 | 11% |
| 19 | Montana | 1,050,493 | 119 | 11% |
| 20 | Washington | 7,405,743 | 710 | 10% |
Most common cities for tax analysts
| Rank | City | # of jobs | Employment/ 1000ppl | Avg. salary |
|---|---|---|---|---|
| 1 | Newark | 5 | 15% | $61,378 |
| 2 | Windsor | 4 | 14% | $61,759 |
| 3 | Hartford | 6 | 5% | $61,791 |
| 4 | Tampa | 14 | 4% | $43,696 |
| 5 | Costa Mesa | 3 | 3% | $71,544 |
| 6 | Orlando | 5 | 2% | $43,535 |
| 7 | Ann Arbor | 3 | 2% | $61,486 |
| 8 | Boston | 7 | 1% | $65,689 |
| 9 | Atlanta | 6 | 1% | $59,330 |
| 10 | Denver | 5 | 1% | $60,413 |
| 11 | Des Moines | 3 | 1% | $52,474 |
| 12 | Chicago | 10 | 0% | $65,294 |
| 13 | New York | 7 | 0% | $69,265 |
| 14 | Dallas | 5 | 0% | $56,033 |
| 15 | San Diego | 5 | 0% | $69,937 |
| 16 | Indianapolis | 3 | 0% | $41,970 |
Tax Analyst job outlook: Expert opinions
Our panel of tax analyst experts
Manhattan College
Fairfield University
Gonzaga University
Henderson State University
The University of Texas at Arlington
University of Oregon
Stonehill College
American University
Skyline College
Western Kentucky University
Oakland University
University of Missouri - St Louis
Muhlenberg College
What general advice would you give to a Tax Analyst?
Dr. Natalia Boliari PhD: First, learn everything about the company you just started working for - its historical path, management, the way it's dealt with crises, etc. Second, learn everything about the specific industry the company belongs to and see how the company has developed relative to the development of the industry domestically and internationally. Third, always be extremely alert to notice new opportunities and be prepared to take calculated risks. That is, actively look for opportunities to complete as many and diverse tasks as possible, and volunteer to complete any type of work regardless of whether it seems relevant to your assigned job or not. Opportunities to learn, grow, and improve and thus to maximize your income, will only come up if you are exposed to diverse situations.
What Tax Analyst skills would you recommend for someone trying to advance their career?
Dr. Natalia Boliari PhD: Be open minded. Finance is the broad definition of an industry which provides opportunities for careers in financial consultancy, financial analysis, stock brokerage, foreign investment, modeling, exchange rate forecasts, and many more. While most of those careers are attributed to the banking industry, you can find those and others in other sectors of the economy, such as insurance, technology, health care/medical, government, and so on. So, be open and look beyond the banking sector, examine the current and predicted trends in the economy to hunt for exciting career options.
What general advice would you give to a Tax Analyst?
John McDermott Ph.D.: To maximize your salary potential, keep learning, investing in your human capital, and expanding your capabilities. Learn as much as you can about your new position and industry, work with a variety of people at your firm, and seek opportunities outside your comfort zone. Your salary potential will increase as you are recognized as a capable and hard working colleague.
What general advice would you give to a Tax Analyst?
Andrew Brajcich: Tax technical skills will always be important. But now those are just table stakes. To be a value-adding advisor to your client or team, you need technological skills including some coding and database management skills. And it has to be more than Excel. I don’t care if it’s exposure to Python or SQL or Tableau or Alteryx or something else. You need to understand how technologies work because they will change but the fundamental concepts behind the tools remain.
What will help Tax Analysts increase their earning potential?
Andrew Brajcich: 1) Be open to anything. You might be surprised at what you discover. 2) Be nimble. Most career paths are a zig zag. Few are direct. 3) Learn how to leverage AI without being over reliant. In tax, it has a long ways to go so hop on for the ride but double check every aspect of the work product. You can learn with it. And of course get permission before using any tools.
What will help Tax Analysts increase their earning potential?
Lisa Bell MBA, CPA: Artificial Intelligence(AI) isn't changing accounting, but it is changing how accounting is performed. Organizations will need to learn how to leverage AI to decrease redundant data entry and increase data analysis. Effective use of AI can lead to significant increases in efficiencies which allow organizations to have a more competitive edge
What will help Tax Analysts increase their earning potential?
Kirsten Cook:
Ten years ago, I would've said "soft skills" like verbal and written communication. Five years ago, data analytics was all the rage. I don't believe these skills have become any less important; rather, we must continue to layer on new skills to match the changing professional environment. Today, I encourage students to be technologically agile. For example, if you learned to use Alteryx in a class, but your new employer uses PowerBI, recognize the similarities between these programs and build on your existing knowledge to master the new tool. Also, stay abreast of developments in accounting by not only reading the business press but also by connecting with experts on social media like LinkedIn.
What general advice would you give to a Tax Analyst?
Ms. Leah Parker-Roth 15, CPA: One common criticism of accounting is the long hours and the demanding 'busy season.' However, based on my own experience working in public accounting, although there were long hours, I had the opportunity to work with various clients and was able to learn many skills, including sales tax, payroll preparation, financial statement preparation, bookkeeping, and tax return preparation.
What Tax Analyst skills would you recommend for someone trying to advance their career?
Ms. Leah Parker-Roth 15, CPA: Accounting is an excellent field to enter right now because it isn't going anywhere. Even with advancements in artificial intelligence and automation, clients still need accountants to interpret complex tax laws and regulations that are constantly evolving. Accounting is the language of business and is a valuable skill to have. Moreover, accountants examine financial information to provide useful insights to clients, enabling them to make well-informed business decisions.
What will help Tax Analysts increase their earning potential?
Ms. Leah Parker-Roth 15, CPA: Due to the broad nature of accounting, it is challenging to describe an accountant's typical day-to-day life accurately. However, this is a good thing because there are various specific areas within accounting, such as public accounting and governmental accounting. Accounting professionals generally expect to perform a standard set of tasks and utilize specific skills, including analytical skills and effective communication with colleagues and clients. While anyone can gather and organize data, accountants possess the expertise to analyze and communicate the data. Accountants perform specific tasks, including preparing financial statements and tax returns, payroll processing, maintaining accounting systems, and providing consulting services.
What general advice would you give to a Tax Analyst?
Abbie Daly PhD, CPA: Accounting is often referred to as the "language of business" because accountants communicate financial information. So communication is an integral part of an accountant's day. For example, auditors and tax preparers meet with their clients to understand their financial information, and accountants at organizations prepare and communicate financial information to guide strategic decisions. To facilitate these communications, accountants analyze and interpret many data points. For example, in auditing the revenue recognized by a company, an auditor would examine the underlying transactions, contracts, and supporting documentation.
What will help Tax Analysts increase their earning potential?
Abbie Daly PhD, CPA: Accounting has long been an excellent field to enter for those interested in any aspect of business - understanding a business requires speaking the language. However, now is an especially excellent time to enter the profession, as opportunities are plentiful with more accounting positions available than there are accountants. Further, rapid technological development is affecting the role of the accountant, with routine accounting tasks being automated as platforms such as artificial intelligence and blockchain become more widespread. This will increase accountants' efficiency so that accountants can spend their time on more value-added advisory and analytical tasks. Those entering the accounting profession with these skills will have boundless opportunities available to them. At UW-Whitewater, students acquire these skills by taking classes on accounting analytics, artificial intelligence, and blockchain.
What general advice would you give to a Tax Analyst?
Kenton Klaus: As noted above, the best way to maximize salary potential is to quickly narrow down the areas of tax where the graduate student can separate themselves from other candidates. If the graduate student did his or her homework before finishing their graduate studies, they will be able to demonstrate to employers that they have a deeper knowledge of the technical areas in which they have an interest, along with the applicable technology.
What Tax Analyst skills would you recommend for someone trying to advance their career?
Kenton Klaus: Taxation is a very broad discipline, so it's important for a new tax professional to understand all the opportunities available for them to use their graduate degree. In some cases, graduate students have already been in the workforce, and have specific plans to return to a certain area of practice. However, many students have not explored the available opportunities to see which line up best with their interests and skills. I encourage graduate students to explore the market before they graduate, reach out to alumni who work in different areas of the tax profession, and speak with the professors for the courses that most interested them.
What will help Tax Analysts increase their earning potential?
Kenton Klaus: Taxation is a very broad discipline, so it's important for a new tax professional to understand all the opportunities available for them to use their graduate degree. In some cases, graduate students have already been in the workforce, and have specific plans to return to a certain area of practice. However, many students have not explored the available opportunities to see which line up best with their interests and skills. I encourage graduate students to explore the market before they graduate, reach out to alumni who work in different areas of the tax profession, and speak with the professors for the courses that most interested them.
What general advice would you give to a Tax Analyst?
Dr. J. Klaus Ph.D., CPA (KY): Choosing a career in accounting today is particularly appealing due to the strong demand for skilled professionals in the field. Accounting stands out for its stability, offering a secure and reliable career path. The diversity within the profession, including areas like tax accounting and financial analysis, provides individuals with flexibility to align their work with their specific interests. With a global relevance, accountants are in high demand internationally. The current technological advancements have streamlined routine tasks, allowing professionals to focus on more strategic aspects of their roles. Pursuing well-regarded certifications, such as the CPA designation, ensures continuous learning and opens avenues for career advancement. Additionally, the flexibility for remote work and potential for entrepreneurial ventures make accounting a highly sought-after and promising choice in response to the prevalent demand for skilled professionals.
What Tax Analyst skills would you recommend for someone trying to advance their career?
Dr. J. Klaus Ph.D., CPA (KY): Some individuals may find the work routine and meticulous, as attention to detail is paramount in accounting. Meeting deadlines, especially during tax season, can lead to periods of heightened stress. Additionally, the demanding nature of staying abreast of ever-changing tax laws and regulations can be seen as both a positive challenge for those who enjoy continuous learning and a potential source of stress for others. Overall, while accounting provides stability and numerous rewarding aspects, it also requires a commitment to precision and adaptability to navigate its challenges.
What will help Tax Analysts increase their earning potential?
Dr. J. Klaus Ph.D., CPA (KY): Tax accountants hold a pivotal role in managing financial records, ensuring tax compliance, and offering strategic financial guidance. Their daily activities encompass preparing tax returns, conducting financial analyses, and staying abreast of dynamic tax regulations. Recent graduates embark on a fulfilling journey, starting with foundational tasks and progressing through training, collaboration with experienced professionals, and client engagement. This profession offers continuous learning opportunities, with many aspiring to attain certifications like the CPA designation. Ultimately, becoming a tax accountant is not only rewarding but also crucial in contributing to financial transparency, efficiency, and compliance for individuals and businesses alike.
Z. Jay Wang
Department Head, Associate Professor of FinanceUniversity of Oregon
Finance And Financial Management Services
What will help Tax Analysts increase their earning potential?
Z. Jay Wang: Students who have a history of doing work in the field outside the classroom either through internships, industry projects, or school-sponsored clubs managing financial decisions are better poised to maximize starting salary potential. Starting early to secure internships with top companies will also position students well for higher earning potential. Most top banks and firms will post internships from April/May to August, and close by the end of September for the following summer. They are also rolling, so may fill the roles by as early as June of the sophomore year for the following summer after junior year. Finally, networking with industry and alumni professionals in the companies, firms, banks prior to applying for an internship or full-time position will have an impact. The candidate will learn more about the opportunity and company culture for their resume and potential interview, and most top companies in finance will have a referral program. If the candidate impresses the internal connection with excellent questions and strategic answers, they may get a referral that moves them up in the stacks of applicants.
What general advice would you give to a Tax Analyst?
Dr. Wayne Durr: Maximizing your salary potential starts with understanding your value. What skills and
capabilities can you articulate to a prospective employer? The ability to articulate these skills
and what you bring to that company can be challenging. Think of your resume like an artist
thinks of their portfolio. What projects or analysis have you worked on? You cannot articulate
the value you will bring to that prospective company without the ability to articulate your skills
and capabilities. Do your research to determine what other employers pay people with the
same abilities. Ask employers what the salary range is and use that as your baseline. As you
get close to graduating, your classmates talk about the job offers they receive and most likely
share the salaries they are being offered. Listen and use this as a baseline. All this gives you
an idea of your value. Your first job isn't always the place where you'll be able to maximize your
earning potential. Think of your first job as where you will get the work experience to maximize
your future earning potential. Look at this as the place where you will sharpen your skills and
develop new ones. This first job will be where you fill out your resume and either have an
opportunity to maximize your earning potential there or elsewhere in the future.
Additionally, think about passive income and the "side gig". If you don't feel like you're
maximizing your earning potential at that first job, think about how you can make money on the
side. I believe we now live in a society where truly maximizing your earning potential comes
from more than your current employer. The ability to earn money from a side gig is more
prevalent than ever before. I think every student should take an entrepreneur class. Think
about your skills, which one could make you some side money. Don't dismiss jobs you did
growing up, like delivery service, landscaping, etc. There are so many apps and websites that
people and companies are looking for anything from an hour to a couple of days worth of work.
Take that first six months on the job to get settled in, and then start thinking about that side gig.
Octavian Ionici PhD
Sr. Lecturer in FinanceAmerican University
Finance And Financial Management Services
What Tax Analyst skills would you recommend for someone trying to advance their career?
Octavian Ionici PhD: The finance profession is lucrative, rewarding and very competitive. Graduates should do their research about the organization they are interviewing with and be able to discuss how their skills can contribute to the business. They should also know if they would rather interact with people and clients or if they are drawn to intellectual pursuits such as analysis. Do they value power, prestige status, risk, or something else? Ultimately our core values, personal goals, interests, aptitudes, and personality will shape our career paths.
Being able to articulate what sparked their interest in the financial field and why they are interested in a chosen role will be an advantage during the hiring process. While still in college, students should join a professional association like the Financial Management Association to give them more access to that broad network, as well as access to career development resources that can set them apart from the crowd.
It's also critical to get an internship (paid or unpaid) in order to show some real-life experience. They can do this while they are still in college, during the summers, or even afterwards, to get a foot in the door.
Reading the WSJ and FT daily, and listening to Bloomberg, or other financial programs as a regular practice will help them to have fluency in the language of our profession. Because the finance sector is heavily regulated and changes occur due to changing economic and political conditions, they will need to stay updated with those changes. Financial media sources will help bring them that context to stay up to date on all of these moving parts.
What will help Tax Analysts increase their earning potential?
Octavian Ionici PhD: Try to understand what your boss or your company needs, then see if you can fill that gap with your skill set and work ethic. Finance constantly evolves. A career with lifelong learning will help keep you employable. Investing in continuous learning and skill development can increase your income potential down the road.
Plus, don't underestimate the power of a positive attitude and strong work ethic. You may not be an expert at the beginning, but you can take on every challenge given to you, work hard and try to turn it into a success for your organization. Each win will build your reputation and your portfolio of skills which you will then bring with you to your next job. As you do this, you will inevitably acquire specialized skills.
What will help Tax Analysts increase their earning potential?
Dr. Kimberly Gaither: Maximize your salary potential by asking questions and learning as quickly as possible. Be a good communicator with those above and below you as well as your peers. Be dependable. Persons who show up early and work hard will be valued and rewarded.
Tony Viertel
Accounting Dept. CoordinatorSkyline College
Accounting And Related Services
What general advice would you give to a Tax Analyst?
Tony Viertel: This answer to this question depends on if an account is
working in public accounting or private industry. Public accountants perform the following
tasks:
a. Client communication: Public accountants frequently communicate with clients,
either in person, via phone calls, or through email. They discuss financial
matters, provide project updates, address client concerns, and gather necessary
information to complete tasks.
b. Auditing: For clients requiring audit services, public accountants conduct audits
to verify the accuracy and completeness of financial records. This involves
examining documents, conducting interviews, testing internal controls, and
assessing compliance with relevant regulations and accounting standards.
c. Tax preparation and planning: Public accountants assist clients with tax planning
strategies to minimize tax liabilities while ensuring compliance with tax laws and
regulations. They prepare and file tax returns for individuals, businesses, and
organizations.
d. Consulting Services: Public accountants offer consulting services to clients
seeking advice on various financial matters, such as budgeting, forecasting,
mergers and acquisitions, risk management, and internal controls improvement.
Accountants in private industry perform the following tasks:
a. Financial reporting: Private industry accountants are responsible for preparing
financial statements such as balance sheets, income statements, and cash flow
statements. These reports provide a snapshot of the company's financial health
and performance over a specific period.
b. Budgeting and forecasting: Accountants collaborate with management to develop
annual budgets and forecasts for revenue, expenses, and cash flow. They
monitor actual performance against budgeted figures, analyze variances, and
recommend adjustments to achieve financial goals.
c. Cost accounting: Accountants in private industry analyze the costs associated
with producing goods or services. They calculate product costs, track inventory
levels, and identify opportunities to reduce costs and improve efficiency.
d. Internal controls: Accountants design, implement, and monitor internal control
procedures to safeguard company assets, prevent fraud, and ensure compliance
with regulations and company policies. They may conduct internal audits to
assess control measures' effectiveness and identify improvement areas.
Stacy Bibelhauser Ph.D.
Associate ProfessorWestern Kentucky University
Accounting And Related Services
What will help Tax Analysts increase their earning potential?
Stacy Bibelhauser Ph.D.: The integration of data analytics with accounting-related jobs is already prevalent and will continue to impact the field. I also believe a good working knowledge of cybersecurity practices and policies will become essential in all areas of accounting.
Liang Fu Ph.D.
Associate Professor of Accounting, ChairOakland University
Finance And Financial Management Services
What general advice would you give to a Tax Analyst?
Liang Fu Ph.D.: Job opportunities and career growth trajectory.
What Tax Analyst skills would you recommend for someone trying to advance their career?
Liang Fu Ph.D.: Really depends on what they do.
What will help Tax Analysts increase their earning potential?
Liang Fu Ph.D.: Dislike: accounting is not for everyone, degree requirements/licensing requirements can be challenging. And sometimes, long work hours are required.
Thomas Kozloski PhD, CPA, CGMA
Chair - Department of AccountingUniversity of Missouri - St Louis
Accounting And Related Services
What general advice would you give to a Tax Analyst?
Thomas Kozloski PhD, CPA, CGMA: This is an excellent time to enter the accounting profession! Not only because technology continues to remove some of the more mechanical tasks that used to be performed by a person, but also because there is an extreme shortage of accounting-educated personnel across the country, especially those seeking to enter the profession. This fact is increasing salaries and benefits as hiring companies compete to hire new professionals.
What will help Tax Analysts increase their earning potential?
Thomas Kozloski PhD, CPA, CGMA: This is an excellent time to enter the accounting profession! Not only because technology continues to remove some of the more mechanical tasks that used to be performed by a person, but also because there is an extreme shortage of accounting-educated personnel across the country, especially those seeking to enter the profession. This fact is increasing salaries and benefits as hiring companies compete to hire new professionals.
What Tax Analyst skills would you recommend for someone trying to advance their career?
Ermira Mazziotta MBA, CPA, CFE: Understand and know how to utilize technology. Learn as much as possible.
Amber Lawson CPA
Assistant Professor of Practice in AccountingWhat general advice would you give to a Tax Analyst?
Amber Lawson CPA: Graduates beginning their careers in accounting need to continue to be willing to learn and easy to teach. The technical skills that are taught in the classroom are incredibly important and crucial to passing the CPA exam, but much of the necessary knowledge to succeed in the industry will come from on-the-job, in-the-moment training, so learning doesn't stop when you exit the classroom! I would also emphasize, given the importance of the license, that recent graduates should position themselves to take and pass all sections of the Certified Public Accountant ("CPA") exam as soon as possible. This may mean that the first year of your career is spent juggling both working and studying for the exam, but statistics and anecdotal evidence alike support the notion that the sooner you push towards accomplishing this goal, the more likely you are to achieve it!
What Tax Analyst skills would you recommend for someone trying to advance their career?
Amber Lawson CPA: First and foremost, meeting the necessary requirements for your CPA license is crucial for maximizing your salary potential in any field of accounting. Becoming a CPA not only elevates your earning potential within your starting position, but also creates mobility should you choose to shift your career path. The license signals that you are truly a professional and is a recognizable badge of excellence and the effort you expended to achieve it. Additionally, regardless of where you start your accounting career, become an expert. Whether that is within a particular industry or in regards to a particular methodology, learn whatever you can. Again, this allows you to not only elevate yourself in your existing role, but gives you more value (in tandem with your CPA license) as a professional should you choose to change.
What general advice would you give to a Tax Analyst?
Ermira Mazziotta: Understand and know how to utilize technology. Learn as much as possible.
What will help Tax Analysts increase their earning potential?
Ermira Mazziotta: Accounting students are in a very good position to land well paying jobs because of the demand. Most important advice I would give is to continue to learn and grow and invest in your professional growth by taking classes, working on different clients from different industries and most importantly network. If you have an option to work in the office, do that instead of working remotely. Making those face to face connections will help propel and grow your career.