Understanding the Average Cost of Tax Preparation by a CPA: A 2025 Guide

Quick Summary

This article breaks down the average cost of tax preparation by a CPA, why pricing varies so widely, and what individuals and business owners can expect based on their specific tax situation. It also explains the difference between CPAs and other tax preparers, how fee structures work, and when professional help is worth the investment.

Who This Is For

• Individuals wanting clarity on what tax preparation should cost

• Freelancers and self-employed professionals filing Schedule C

• Rental property owners filing Schedule E

• Small and medium-sized business owners navigating complex tax filing

• Anyone comparing tax software vs. hiring a CPA

• Business owners who want to streamline tax prep and improve year-round financial organization

Key Takeaways

• The average cost of tax preparation by a CPA for individuals typically ranges from $200–$1,000, depending on forms, complexity, and income sources.

• Business tax preparation fees usually fall between $500–$5,000, with higher costs for corporations, partnerships, and businesses with complex reporting needs.

• Many filers need more than tax prep. Services like audit support, IRS representation, tax planning, and estimated tax payment guidance may add to the total cost but reduce long-term risk.

• With Steady’s bookkeeping, CFO services, payroll support, and tax planning, business owners get year-round financial clarity, smoother tax seasons, and more predictable pricing.

Tax season brings a mix of pressure and responsibility for both individuals and business owners. Whether you are filing your first return or managing a company with multiple income streams, tax preparation is a chance to protect your finances and stay compliant. Working with a certified public accountant keeps your records accurate and lowers the chance of an IRS audit.

So, what is the average cost of tax preparation by CPA professionals, and what affects the price?

This guide breaks down national averages, factors that influence the cost of tax preparation, and how you can achieve better tax preparation through clear financial reporting and proactive tax services.

What Most People Pay: The Average Cost of Tax Preparation by a CPA

Across the country, the average cost of tax preparation by a CPA falls within a wide range because each return is different. Most individual tax returns fall between $200 and $1,000. The cost of tax ranges higher when the return includes business income, capital gains, rental properties, or other components that require deeper review.

Typical national averages show individual tax filing at the lower end, while business tax returns or situations involving Schedule C or Schedule E reach the upper end. When assessing the average cost of tax preparation, the complexity of the return is one of the biggest drivers of price. For example, filings that include multiple income streams, investment income, or rental properties take more time to complete. If a filer has itemized deductions or wants to reduce taxable income in a compliant way, the return usually requires more analysis.

The average cost of professional tax preparation rises with each layer of complexity. A return with Schedule C or Schedule E often requires more review of business income or property details. Filing requirements change again if the taxpayer has multiple income sources or owns a business that needs separate business tax preparation.

Even with these variables, most accountants use the same approach to determine the final price. Several factors matter, including document readiness and whether disorganized or incomplete files need cleanup. Costs range significantly, but the final price usually aligns with the time and detail needed to complete the return accurately.

Factors That Influence Tax Preparation Costs

Many filers notice tax preparation costs change from year to year. Several factors contribute to this, and understanding them helps you estimate your cost of tax preparation more accurately.

1. Complexity of the tax situationMore forms lead to higher tax preparation fees. Multiple income sources, self-employment income, rental income, investment income, or business ownership increase the time required to complete the return. Anyone with multiple deductions or multi-state filing typically pays more.

2. Business tax preparation requirementsBusiness owners often have additional steps, such as bookkeeping cleanup, financial statements, or estimated tax payments. This increases business tax preparation fees and requires a tax professional with business experience.

3. Experience level of the preparerA more experienced CPA often charges higher cpa fees or average hourly fees. Enrolled agents may have lower pricing, while tax preparers with limited experience often use lower flat fees.

4. Condition of the recordsIf a client brings in disorganized or incomplete files, the cost of tax preparation increases. This is one reason Steady focuses on monthly bookkeeping and clean, accurate reports.

5. Location and fee structureDifferent fee structures affect cost. Some preparers use flat fees for simple tax returns, while others rely on hourly billing. Transparent pricing helps avoid hidden fees and keeps expectations clear.

6. Tax software vs professional helpChoosing tax software can make sense for simple returns. Tax preparation by CPA professionals is ideal for returns involving business income, rental properties, capital gains, or multi-state filings.

These factors explain why the cost of tax preparation varies widely and why national averages only tell part of the story.

Business Tax Preparation Fees: What Business Owners Can Expect

Business tax returns require more work than individual tax returns, so the cost is higher. Business taxes include payroll, depreciation, business income, estimated tax payments, and industry-specific rules. Typical business tax preparation fees fall between $500 and $5,000, depending on the entity type and document readiness.

Business tax preparation often requires reviewing multiple deductions for business expenses, analyzing capital gains from asset sales, or reporting rental properties for companies involved in property management. Some industries require special treatment under tax law, which raises the level of expertise needed. Businesses with bookkeeping issues also incur higher tax preparation costs because the tax professional must correct records before preparing the return.

For many business owners, the value lies in knowing the return is filed accurately. Clean books lead to lower fees and a faster process, which is exactly why Steady focuses on accurate bookkeeping year-round.

How CPA Fees Compare to Other Tax Preparers

One common question is whether a CPA is more expensive than a tax preparer. In most cases, yes. A CPA has deeper training, licensing, and tax law knowledge. Their fees reflect that expertise. While some general tax preparers offer lower costs to file taxes, a CPA can handle complex tax situations and more advanced tax planning.

Enrolled agents fall between general preparers and CPAs. They have specialized training in tax but may not have the broader financial expertise of a certified public accountant.

Many business owners prefer CPAs because they can handle audit support and apply tax rules with greater precision while representing the client. When issues arise, having a professional tax preparer with deeper experience can bring calm and accuracy.

Steady connects clients with tax professionals who understand their industry, which reduces the time needed to prepare the return and improves accuracy.

Hourly vs Flat Fees

Tax professionals usually choose between flat fees or hourly pricing when pricing out their services.

Flat fees are common for simple tax returns, individual tax returns, or standard deduction filings. These flat fees often cover only the basic forms. When a return includes self-employment income, Schedule C entries, Schedule E rental properties, or capital gains, the cost rises.

Hourly fees make sense for complex returns, such as multi-state filing. Average hourly fees increase with experience, so a more experienced CPA usually charges more.

Audit Support, Tax Planning, and Additional Services

Tax preparation is only one piece of the puzzle. Many people need additional services such as audit support, IRS audit representation, tax advice, tax planning services, or help with estimated tax payments. These services help minimize risk and improve accuracy.

Steady focuses on proactive tax planning. By working year-round to reduce taxable income and manage capital gains, clients benefit from potential tax savings and fewer surprises at the tax deadline.

When You Should Choose a CPA Over Tax Software

Tax software works well for simple returns. When the return involves rental properties, capital gains, business income, or multi-entity ownership, a tax professional is the better choice. Tax software cannot always spot the issues that a certified public accountant can.

How Steady Helps Business Owners Save Money on Tax Preparation

Understanding the average cost of tax preparation by a CPA starts with recognizing what drives those costs. The complexity of your tax situation and the condition of your financial records all play a major role in what you ultimately pay.

This is where Steady becomes a strategic advantage.

Steady’s bookkeeping, CFO services, payroll support, and tax planning services work together to reduce long-term tax preparation fees and make sure your financials are tax-ready throughout the year. With industry-specific expertise and a client-focused approach, Steady helps you stay compliant, maximize deductions, minimize liabilities, and make confident financial decisions.

If you want a smoother tax season and a financial partner who understands your business, Steady is here to help you get organized and save money in the process. Book a consultation today to get to know Steady and how it can help your business prepare for tax returns every day.