GITNUX MARKETDATA REPORT 2023

Tax Preparation Industry Statistics [Fresh Research]

Facts about this Market Data Report

IconJournalist involved: 2
IconCited by: 144
IconStatistics researched: 16

Highlights: The Most Important Tax Preparation Industry Statistics

  • The global tax preparation services market is expected to grow from $7.9 billion in 2020 to $8.1 billion in 2021.
  • The tax preparation services market in the United States is worth $11 billion.
  • The tax preparation industry is expected to have an annual growth rate of 3.18% in the United States between 2021 and 2026.
  • There are approximately 284,000 tax preparation businesses in the United States.
  • About 53% of Americans who file taxes utilize a tax professional.
  • H&R Block and Intuit (TurboTax) handle about 42% of electronically prepared individual tax returns in the United States.
  • The average fee for preparing a simple Form 1040 tax return is $176.
  • Tax preparation software revenue in the United States is forecasted to be $4.9 billion in 2021.
  • Approximately 38.8% of taxpayers use a certified public accountant (CPA) for tax preparation services.
  • The tax preparation services industry is projected to grow at 2% from 2019 to 2024.
  • Nearly 25% of taxpayers wait until the last two weeks of the tax filing period to file their returns.
  • The average hourly wage of a tax preparer in the United States is $22.53.
  • About 81% of U.S. taxpayers believe that a tax professional improves their chances of receiving a larger tax refund.
  • The United States has roughly 52 publicly traded tax-focused companies, with a combined market capitalization of over $267 billion.

Table of Contents

The global tax preparation services market is a rapidly growing industry, with the market expected to grow from $7.9 billion in 2020 to $8.1 billion in 2021 and an annual growth rate of 3.18% projected for the United States between 2021 and 2026. In the U.S., there are approximately 284,000 tax preparation businesses worth around $11 billion, while 53% of Americans who file taxes utilize a professional service provider such as H&R Block or Intuit (TurboTax). The average fee for preparing a simple Form 1040 return is estimated at $176, with 70% of small businesses outsourcing their tax preparations to professionals and 30-50% of all taxpayers depending on these services each year.

Tax software revenue in the US alone is forecasted at nearly 5 billion dollars this year; 38.8 percent use CPAs for filing returns while over 630 thousand active CPAs exist nationwide - yet 45 percent think fees charged by professionals are too high. On top of that, 25 percent wait until two weeks before deadline day when filing their returns – but those using pros can save up to 2 thousand 615 dollars compared to self-filing. Lastly, enrolled agents make up 40 thousand people across America representing taxpayers’ interests during disputes – plus 52 publicly traded companies have combined capitalization exceeding 267 billions.

The Most Important Statistics
The global tax preparation services market is expected to grow from $7.9 billion in 2020 to $8.1 billion in 2021. This statistic is a testament to the resilience of the tax preparation services market in the face of the global pandemic. Despite the economic downturn, the market is still projected to grow, indicating that tax preparation services remain a valuable asset to individuals and businesses alike. This statistic is a reminder of the importance of tax preparation services in the current climate and the potential for growth in the industry. The tax preparation services market in the United States is worth $11 billion. This statistic is a testament to the sheer size and scope of the tax preparation services market in the United States. It speaks to the immense value of the industry and the potential for growth and expansion. It also serves as a reminder of the importance of tax preparation services to the US economy, and the need for businesses to stay up-to-date on the latest industry trends and developments.

Tax Preparation Industry Statistics Overview

The tax preparation industry is expected to have an annual growth rate of 3.18% in the United States between 2021 and 2026.

This statistic is a key indicator of the potential for success in the tax preparation industry. It shows that the industry is expected to experience steady growth over the next five years, indicating that now is a great time to invest in the industry. This statistic is a valuable piece of information for anyone looking to get involved in the tax preparation industry, as it provides a glimpse into the future of the industry and the potential for success.

There are approximately 284,000 tax preparation businesses in the United States.

This statistic is a testament to the sheer size of the tax preparation industry in the United States. It speaks to the fact that there are a large number of businesses dedicated to helping individuals and businesses with their taxes, and that the industry is a major player in the US economy. This statistic is an important piece of information for anyone looking to gain insight into the tax preparation industry.

About 53% of Americans who file taxes utilize a tax professional.

This statistic is a telling indication of the importance of tax professionals in the United States. It shows that the majority of taxpayers rely on the expertise of a professional to ensure their taxes are filed correctly and that they are taking advantage of all available deductions and credits. This statistic is a valuable insight into the Tax Preparation Industry and the need for its services.

H&R Block and Intuit (TurboTax) handle about 42% of electronically prepared individual tax returns in the United States.

This statistic is a testament to the immense influence that H&R Block and Intuit (TurboTax) have on the tax preparation industry in the United States. It highlights the fact that these two companies are the dominant players in the market, and that they are responsible for a significant portion of the electronically prepared individual tax returns in the country. This statistic is an important one to consider when discussing the tax preparation industry, as it provides insight into the competitive landscape and the power dynamics at play.

The average fee for preparing a simple Form 1040 tax return is $176.

This statistic is a key indicator of the cost of tax preparation services, providing insight into the financial burden of filing taxes. It is an important piece of information for anyone considering hiring a professional to prepare their taxes, as it gives them an idea of what to expect in terms of cost. Additionally, it is a useful data point for understanding the overall landscape of the tax preparation industry.

Tax preparation software revenue in the United States is forecasted to be $4.9 billion in 2021.

This statistic is a testament to the immense potential of the Tax Preparation Industry in the United States. It shows that the industry is expected to grow significantly in the coming years, and that there is a great opportunity for businesses to capitalize on this growth. It also serves as a reminder of the importance of staying up-to-date with the latest tax preparation software and trends in order to remain competitive in the industry.

Approximately 38.8% of taxpayers use a certified public accountant (CPA) for tax preparation services.

This statistic is a telling indication of the importance of certified public accountants in the tax preparation industry. It shows that a large portion of taxpayers rely on CPAs to help them with their taxes, highlighting the need for qualified professionals in the field. This statistic is also important for understanding the size of the tax preparation industry and the potential for growth in the sector.

The tax preparation services industry is projected to grow at 2% from 2019 to 2024.

This statistic is a key indicator of the Tax Preparation Services Industry's future prospects. It suggests that the industry is likely to remain a viable and profitable sector in the years to come, providing a reliable source of income for those involved in the industry. This is an important point to consider when discussing the Tax Preparation Industry Statistics, as it provides a glimpse into the potential of the industry and its potential for growth.

Nearly 25% of taxpayers wait until the last two weeks of the tax filing period to file their returns.

This statistic is a telling indication of the importance of the Tax Preparation Industry. It shows that a large portion of taxpayers rely on the services of tax preparation professionals to get their returns filed on time. This highlights the need for tax preparation services and the value they provide to taxpayers.

The average hourly wage of a tax preparer in the United States is $22.53.

This statistic is a telling indication of the value of the tax preparation industry in the United States. It shows that tax preparers are being compensated fairly for their services, and that the industry is a viable and lucrative one. This statistic is a testament to the importance of the tax preparation industry in the US economy.

About 81% of U.S. taxpayers believe that a tax professional improves their chances of receiving a larger tax refund.

This statistic is a powerful indicator of the value that taxpayers place on the services of a tax professional. It suggests that the majority of taxpayers recognize the potential for a tax professional to help them maximize their refund, and are willing to invest in the expertise of a professional to do so. This is an important insight for anyone interested in the Tax Preparation Industry, as it highlights the potential for growth in the sector.

The United States has roughly 52 publicly traded tax-focused companies, with a combined market capitalization of over $267 billion.

This statistic serves as a testament to the sheer size and scope of the tax preparation industry in the United States. With over $267 billion in market capitalization, it is clear that the industry is a major player in the US economy. This figure also highlights the importance of tax preparation services to businesses and individuals alike, as they rely on these companies to ensure their taxes are filed correctly and on time.

Conclusion

The tax preparation industry is a rapidly growing sector, with the global market expected to reach $8.1 billion in 2021 and the U.S. market worth an estimated $11 billion. The United States has 284,000 businesses dedicated to providing tax services, as well as over 630,000 active Certified Public Accountants (CPAs). Tax professionals are highly sought after by taxpayers due to their ability to save clients money on taxes and increase chances of receiving larger refunds; however, many people feel that fees for these services can be too high at times.

H&R Block and Intuit handle about 42% of electronically prepared individual returns while software revenue in the US is forecasted at nearly $5 billion this year alone. With an annual growth rate of 3-4%, it's clear that there will continue to be strong demand for professional tax preparation services both domestically and abroad in years ahead

References

0. - https://www.nerdwallet.com

1. - https://www.nytimes.com

2. - https://www.cpapracticeadvisor.com

3. - https://www.statista.com

4. - https://www.ziprecruiter.com

5. - https://www.merchantmaverick.com

6. - https://www.ibisworld.com

7. - https://www.globenewswire.com

8. - https://www.grandviewresearch.com

9. - https://www.businesswire.com

10. - https://www.marketstudyreport.com

11. - https://www.business.org

 

Frequently Asked Questions

The average cost of tax preparation services in the United States is approximately $275 for an itemized tax return and state tax, whereas for a standard 1040 return without itemized deductions, it costs around $176.
The market size of the tax preparation industry in the United States is estimated to be approximately $11.2 billion in 2021.
The leading tax preparation companies in the United States include H&R Block, TurboTax (Intuit), and Jackson Hewitt.
The growth rate of the tax preparation industry varies year to year. However, the industry has experienced a steady growth in recent years, with an annual growth rate of approximately 2.4% from 2016 to 2021.
There are approximately 300,000 to 350,000 tax preparers in the United States, including certified public accountants, enrolled agents, attorneys, and unenrolled preparers.
How we write these articles

We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly. See our Editorial Guidelines.

Table of Contents

Free Test

Leadership Personality Test

Avatar Group
No credit card | Results in 10 minutes