The results from a new National Association of Tax Preparers study show that tax preparers are planning double-digit increases in their fees.
The 2023 Fee Study found an average cost for a new client in 2023 to be $218 versus $174 in 2021, an increase of just about 23%.
Additional findings include:
49% of respondents do not have additional staff in their office.
The majority of tax professionals prepare a mixture of simple and complex returns, and 52% say their practice is growing.
The overall average charge for individual returns, regardless of method, increased $35.
The overall average charge for business returns, regardless of method, increased $85.
25% of tax pros do not charge any additional fees for any state returns when they prepare the federal return.
Researchers noted that the double-digit increase is out of the norm and is stemming from flat fees during the pandemic.