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2025 U.S. Industry Statistics & Market Forecast - Tax Preparation Services
Market Size & Industry Statistics
The total U.S. industry market size for Tax Preparation Services:
Industry statistics cover all companies in the United States, both public and private, ranging in size from small businesses to market leaders.
In addition to revenue, the industry market analysis shows information on employees, companies, and average firm size.
Investors, banks, and business executives use growth rates and industry trends to understand the market outlook and opportunity.
| Statistics | 2020 2021 2022 2023 2024 | |
|---|---|---|
| Market Size (Total Sales/Revenue) |
Order at top of page | |
| Total Firms | ||
| Total Employees | ||
| Average Revenue Per Firm | ||
| Average Employees Per Firm | ||
| Average Revenue Per Employee | ||
Market Forecast
Market forecasts show the long term industry outlook and future growth trends. The following extended five-year forecast projects both short-term and long-term trends.
| Forecast / Industry Outlook | 2025 | 2026 | 2027 | 2028 | 2029 |
|---|---|---|---|---|---|
| Market Forecast ($ millions) | |||||
| Projected Industry Growth Rate (%) | |||||
Industry Insights
Major trends affect the Tax Preparation Services industry include:- Increase in automation and use of tax software
- Rise in regulatory complexities
- Growth in online and remote services
- Impact of economic fluctuations on filing patterns
- Demand for year-round financial planning and advice
- Shift towards sustainable and responsible practices
- Expansion of services to include audit support and IRS negotiations
- Integration of artificial intelligence and machine learning
- Emergence of mobile applications for tax preparation
- Heightened concern for data privacy and security
- Increase in do-it-yourself tax filers using online platforms
- Growing importance of multilingual and multicultural services
- Impact of global tax policy changes on multinational filing
Product & Services Breakdown
Research products and services in the Tax Preparation Services industry generating sales. Note that products are broken into categories with different levels of classification.| Product Description | Number of Companies | Sales ($ millions) | Percent of Total Sales |
|---|---|---|---|
Industry Total |
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Bookkeeping And Compilation Services |
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Tax Planning And Consulting Services |
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Tax Planning And Consulting Service - Individuals And Unincorporated Businesses |
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Tax Preparation And Representation Services - Individuals And Unincorporated Businesses |
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Tax Preparation And Representation Services - Corporate And Other Clients |
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U.S. Geographic Distribution: Revenue Statistics by State
Market Size by State ($ millions) indicates how the industry's competition is distributed throughout the country. State-level information can identify areas with higher and lower industry market share than average.
Income Statement (Average Financial Metrics)
Financial metrics provide a snapshot view of a benchmark "average" company. Key business metrics show revenue and operating costs. The data collected covers both public and private companies.| Industry Average | Percent of Sales (Industry Benchmark) |
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|---|---|---|
| Total Revenue | Order at top of page |
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| Operating Revenue | ||
| Cost of Goods Sold | ||
| Gross Profit | ||
Operating Expenses | ||
| Pension, profit sharing plans, stock, annuity | ||
| Repairs | ||
| Rent paid on business property | ||
| Charitable Contributions | ||
| Depletion | ||
| Domestic production activities deduction | ||
| Advertising | ||
| Compensation of officers | ||
| Salaries and wages | ||
| Employee benefit programs | ||
| Taxes and Licenses | ||
| Bad Debts | ||
| Depreciation | ||
| Amortization | ||
| Other Operating Expenses | ||
| Total Operating Expenses | ||
| Operating Income | ||
| Non-Operating Income | ||
| EBIT (Earnings Before Interest and Taxes) | ||
| Interest Expense | ||
| Earnings Before Taxes | ||
| Income Tax | ||
| Net Profit Net Income | ||
Financial Ratio Analysis
Financial ratio information can be used to benchmark how a Tax Preparation Services company compares to its peers. Accounting statistics are calculated from the industry-average for income statements and balance sheets.| Profitability & Valuation Ratios | Industry Average |
|---|---|
| Company valuation can be measured based on the firm's own performance, as well as in comparison against its industry competitors. These metrics show how the average company in the Tax Preparation Services industry is performing. | |
| Profit Margin Gross Profit Margin, Operating Profit Margin, and Net Profit Margin. Show company earnings relative to revenues. |
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| Return on Equity (ROE) Return on Equity (ROE) is net income as a percentage of shareholders' equity. Shareholders' Equity is defined as the company's total assets minus total liabilities. ROE shows how much profits a company generates with the money shareholders invested (or with retained earnings). |
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| Return on Assets (ROA) Return on Assets (ROA) is net income relative to total assets. The market research on Tax Preparation Services measures how efficiently the company leverages its assets to generate profit. ROA is calculated as Net Income divided by Total Assets. |
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| Liquidity Ratios | Industry Average |
|---|---|
| Bankers and suppliers use liquidity to determine creditworthiness and identify potential threats to a company's financial viability. | |
| Current Ratio Measures a firm's ability to pay its debts over the next 12 months. |
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| Quick Ratio (Acid Test) Calculates liquid assets relative to liabilities, excluding inventories. |
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| Efficiency Ratios - Key Performance Indicators | Industry Average |
|---|---|
| Measure how quickly products and services sell, and effectively collections policies are implemented. | |
| Receivables Turnover Ratio If this number is low in your business when compared to the industry average in the research report, it may mean your payment terms are too lenient or that you are not doing a good enough job on collections. |
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| Average Collection Period Based on the Receivables Turnover, this estimates the collection period in days. Calculated as 365 divided by the Receivables Turnover |
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| Inventory Turnover A low turnover rate may point to overstocking, obsolescence, or deficiencies in the product line or marketing effort. |
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| Fixed-Asset Turnover Generally, higher is better, since it indicates the business has less money tied up in fixed assets for each dollar of sales revenue. |
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Compensation & Salary Surveys for Employees
Compensation statistics provides an accurate assessment of industry-specific jobs and national salary averages. This information can be used to identify which positions are most common, and high, low, and average annual wages.| Title | Percent of Workforce | Bottom Quartile | Average (Median) Salary | Upper Quartile |
|---|---|---|---|---|
| Management Occupations | 10% | Order at top of page |
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| Chief Executives | 0% | |||
| General and Operations Managers | 2% | |||
| Operations Specialties Managers | 6% | |||
| Business and Financial Operations Occupations | 48% | |||
| Business Operations Specialists | 7% | |||
| Financial Specialists | 41% | |||
| Accountants and Auditors | 32% | |||
| Accountants and Auditors | 32% | |||
| Tax Examiners, Collectors and Preparers, and Revenue Agents | 7% | |||
| Tax Preparers | 7% | |||
| Office and Administrative Support Occupations | 30% | |||
| Financial Clerks | 15% | |||
| Bookkeeping, Accounting, and Auditing Clerks | 9% | |||
| Bookkeeping, Accounting, and Auditing Clerks | 9% | |||
Tax Preparation Services Competitor Landscape & Key Companies [PREMIUM]
The most influential companies in the Tax Preparation Services industry and adjacent industries either have large market share or are developing new business models and methods that could disrupt the status quo. We look at leading and emerging companies in the Tax Preparation Services industry and adjacent sectors:| Market Leaders: Direct Competitors Companies with the largest market share, focused in this industry |
Market leaders: Diversified Competitors Largest companies that have diversified operations in this and other industries |
| Innovators: Direct Competitors Innovative, Emerging, and Disruptive Companies that may influence the future direction of the industry. |
Innovators: Diversified Competitors Innovators and Disruptors in adjacent industries that may also affect the Tax Preparation Services industry. |
Source:
Latest Industry News
- Tax provisions in the One Big Beautiful Bill Act - The bill extends portions of the Tax Cuts and Jobs Act, provides deductions to eliminate income taxes on certain tips and overtime pay, and addresses other tax priorities of the Trump administration. (07/04/2025)
- Clear Start Tax Issues Alert: No Federal Penalty for the Uninsured, But Some States May Still Charge You - Clear Start Tax clarifies why some states still require Form 1095-A, even though the federal health coverage penalty was eliminated. IRVINE, CA / ACCESS Newswire / July 4, 2025 / Despite the federal penalty being eliminated, (07/04/2025)
- Income Tax Return: Forgot your login details? You can file ITR easily through net banking - Here's how - To find out if your bank offers the facility, you can check for the Net Banking option on the Income Tax e-Filing website, or you can also contact your bank directly. (07/04/2025)
- Tax Fraud Blotter: No solution - Making use of refunds; playing defense; how to use thin air; and other highlights of recent tax cases. (07/04/2025)
- Trump's 'no tax on tips' is getting close to the finish line. Here's how it will work. - The Senate narrowly approved Trump's tax bill, which includes a provision that would make his “no tax on tips” campaign promise a reality. (07/03/2025)
- Ohio’s major $60 billion budget brings dramatic tax changes - Ohio's new $60 billion budget creates a 2.75% flat income tax for everyone. Discover how these major changes will affect your family's finances. (07/02/2025)
- IRS job cuts could slow service during 2026 tax season, expert says - National Taxpayer Advocate rings warning bell about how much the IRS will be prepared for 2026 tax season, given job cuts and tax changes. (06/30/2025)
- Senators prep for a weekend of work to meet Trump's deadline for passing his tax and spending cuts - The Senate is expected to grind through a rare weekend session as Republicans race to pass President Donald Trump’s package of tax breaks and spending cuts by his July Fourth deadline. (06/28/2025)
- Trump says US terminating all trade talks with Canada over digital services tax - President Donald Trump said on Friday that because of Canada’s digital services tax on American tech companies, the U.S. will end all trade talks with its northern neighbor. (06/27/2025)
- Hope Florida Foundation to amend tax return to show golf tourney made more money - The problems with Hope Florida’s tax return underscores the financial challenges that have plagued the two-year-old foundation affiliated with First Lady Casey DeSantis. (06/12/2025)
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