GITNUXREPORT 2026

Tax Prep Industry Statistics

The tax preparation industry continues to grow significantly in both revenue and market size.

Alexander Schmidt

Research Analyst specializing in technology and digital transformation trends.

First published: Feb 13, 2026

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Statistic 1

TurboTax holds 40% market share in DIY software with 35 million users in 2023.

Statistic 2

H&R Block processed 20.5 million returns in FY2023, down 2% YoY.

Statistic 3

Liberty Tax (part of NextPoint) filed 1.8 million returns in 2023.

Statistic 4

Jackson Hewitt operates 5,700 offices, second largest chain in 2023.

Statistic 5

TaxAct software served 4.2 million customers in 2023.

Statistic 6

Drake Software used by 45,000 tax pros for 18 million returns in 2023.

Statistic 7

Wolters Kluwer (CCH) holds 15% pro software market share.

Statistic 8

Credit Karma Tax (Cash App Taxes) free filers: 2.1 million in 2023.

Statistic 9

Professional tax prep market dominated by Big 4 firms for high-net-worth.

Statistic 10

H&R Block 23 million clients annually 2023.

Statistic 11

TurboTax 37 million DIY filers TY2022.

Statistic 12

Jackson Hewitt 2.1 million returns 2023.

Statistic 13

TaxSlayer 2.5 million users, growing 15%.

Statistic 14

Lacerte pro software 30,000 firms.

Statistic 15

UltraTax CS by Thomson Reuters 25% pro share.

Statistic 16

FreeTaxUSA 3 million free filers 2023.

Statistic 17

Big 4 handle 20% HNW returns >$1M AGI.

Statistic 18

75% mid-size firms use Intuit ProSeries.

Statistic 19

55 million Americans used paid tax prep services in 2022, with 40% repeat customers.

Statistic 20

Average fee for professional tax prep was $246 in 2023, up 8% from 2022.

Statistic 21

28% of U.S. households used DIY software like TurboTax in 2023.

Statistic 22

Low-income filers (<$50k AGI) 65% used free file or VITA in 2023.

Statistic 23

42% of filers procrastinated until April 2023 deadline.

Statistic 24

Mobile tax app usage grew 22% YoY to 18 million users in 2023.

Statistic 25

37% of millennials prefer online tax prep over in-person.

Statistic 26

Satisfaction rate with tax prep services at 78% in 2023 surveys.

Statistic 27

19% of filers switched providers in 2023 due to cost or errors.

Statistic 28

Gig workers (1099) represent 25% of tax prep clients in 2023.

Statistic 29

62 million paid preparer returns filed in TY2022.

Statistic 30

Avg complex return fee $389 in 2023 NTA survey.

Statistic 31

32% used TurboTax Live assisted service 2023.

Statistic 32

VITA/Free File served 7.5 million low-income in 2023.

Statistic 33

48% filers started prep before Feb 2023.

Statistic 34

App-based filing 25 million users up 30% YoY.

Statistic 35

Gen Z 51% opt for digital-only tax prep.

Statistic 36

NPS score for tax services 72/100 in 2023.

Statistic 37

22% switched due to price hikes post-inflation.

Statistic 38

Self-employed filers 15 million, 70% use pros.

Statistic 39

U.S. employed 412,000 tax preparers seasonally in 2023, peaking during tax season.

Statistic 40

Average salary for CPAs in tax prep firms was $128,000 in 2023, up 6% from prior year.

Statistic 41

65% of tax preparers are women, comprising 270,000 of total workforce in 2023.

Statistic 42

Enrolled Agents (EAs) number 53,000 in U.S. as of 2023, credentialed by IRS.

Statistic 43

Tax prep industry turnover rate averages 25% annually due to seasonal nature.

Statistic 44

72% of tax pros work over 50 hours/week during Jan-Apr 2023 peak season.

Statistic 45

Shortage of 100,000 qualified tax preparers projected for 2024 season.

Statistic 46

Median hourly wage for tax preparers $24.50 in 2023, varying by certification.

Statistic 47

15% of tax workforce are freelancers/contractors in 2023, up from 10% in 2019.

Statistic 48

Training hours for new tax preparers average 120 hours annually per firm.

Statistic 49

BLS reports 378,000 tax preparer jobs in U.S. May 2023.

Statistic 50

CPA tax specialist salary average $142,500 in 2023.

Statistic 51

Female representation in tax prep 62% per 2023 census data.

Statistic 52

IRS credentials 52,000 EAs active nationwide 2023.

Statistic 53

Seasonal hiring peaks at 500,000 workers Jan-Mar.

Statistic 54

58% tax pros bill 55+ hours/week in peak 2023.

Statistic 55

85,000 tax pro shortage forecasted for 2025.

Statistic 56

Tax clerk median wage $22.10/hour in 2023 BLS.

Statistic 57

Gig tax preparers 20% of workforce via platforms.

Statistic 58

CPE credits average 40 hours/year for credentialed pros.

Statistic 59

In 2023, the U.S. tax preparation industry generated $12.4 billion in revenue, marking a 4.2% increase from 2022 driven by inflation adjustments and higher wage earners.

Statistic 60

Global tax preparation software market size reached $10.2 billion in 2022 and is projected to grow to $15.8 billion by 2030 at a CAGR of 5.6%.

Statistic 61

U.S. tax prep services market grew by 3.8% in 2023 to $13.1 billion, fueled by complex tax codes post-TCJA.

Statistic 62

H&R Block reported $3.5 billion in revenue for FY2023, with Tax Services segment at $2.9 billion up 5% YoY.

Statistic 63

Intuit's Small Business & Self-Employed Group, including TurboTax, generated $6.1 billion in FY2023, up 13% YoY.

Statistic 64

Tax preparation franchise market in U.S. valued at $8.7 billion in 2023 with 25,000+ locations.

Statistic 65

Online tax prep market share reached 45% of U.S. filings in 2023, up from 38% in 2020.

Statistic 66

U.S. tax prep industry CAGR from 2018-2023 was 3.1%, projected 4.0% through 2028.

Statistic 67

Canada tax preparation market size was CAD 2.1 billion in 2023, growing 4.5% annually.

Statistic 68

Europe tax software market expected to hit €5.2 billion by 2027 from €4.1 billion in 2022.

Statistic 69

U.S. tax preparation industry generated $12.4 billion in revenue in 2023, up 4.2%.

Statistic 70

Tax software market in U.S. valued at $4.8 billion in 2023, CAGR 6.1%.

Statistic 71

Professional tax services segment $8.6 billion in U.S. 2023.

Statistic 72

Intuit TurboTax revenue $3.2 billion in FY2023.

Statistic 73

H&R Block digital revenue up 10% to $450 million in 2023.

Statistic 74

Franchise tax prep revenue $9.2 billion across 28,000 U.S. locations 2023.

Statistic 75

E-file market penetration 45% for paid software in 2023.

Statistic 76

Industry projected to reach $15.2 billion by 2028 at 3.9% CAGR.

Statistic 77

Australia tax prep market AUD 1.8 billion in 2023.

Statistic 78

UK tax software market £1.2 billion growing 7% annually.

Statistic 79

U.S. tax prep revenue per capita $37 in 2023.

Statistic 80

TCJA sunsets in 2025 will affect 60% of filers with rate changes.

Statistic 81

IRS Direct File pilot reached 140,000 users in 12 states in 2024.

Statistic 82

PTIN holders: 362,000 active as of Dec 2023.

Statistic 83

Audit rate for individuals under $400k AGI dropped to 0.2% in 2023.

Statistic 84

State tax conformity to federal changes varies; 32 states decoupled SALT.

Statistic 85

CARES Act credits claimed in 45 million amended returns through 2023.

Statistic 86

Circular 230 violations led to 1,500 sanctions in 2023.

Statistic 87

ERC fraud claims totaled $8.4 billion disallowed in 2023 audits.

Statistic 88

FATCA reporting compliance rate 92% for foreign accounts in 2023.

Statistic 89

Inflation Reduction Act funds IRS modernization $80B.

Statistic 90

PTC 201 for clean energy claims up 300% 2023.

Statistic 91

362,872 PTINs renewed for 2024 season.

Statistic 92

Schedule C audits rose 12% for ERC claims.

Statistic 93

41 states updated conformity to federal 2023 changes.

Statistic 94

RMD waiver for 2023 extended to 2024.

Statistic 95

2,100 Circular 230 penalties issued 2023.

Statistic 96

Gig economy Form 1099-K threshold $600 starts 2024.

Statistic 97

BEPS 2.0 global min tax impacts 15% MNEs.

Statistic 98

68% of small CPA firms use cloud-based tax software in 2023.

Statistic 99

AI adoption in tax prep rose to 35% of firms for audit risk in 2023.

Statistic 100

Blockchain for tax docs piloted by 12% of large firms in 2023.

Statistic 101

Mobile scanning for W-2s used by 55% of TurboTax filers in 2023.

Statistic 102

Cloud tax software market grew 18% to $4.5 billion in 2023.

Statistic 103

Robotic Process Automation (RPA) implemented in 28% of tax depts.

Statistic 104

E-filing rate reached 90.1% of individual returns in 2022 TY.

Statistic 105

API integrations for bank data used by 62% of software platforms.

Statistic 106

Cybersecurity incidents in tax firms up 15% to 1,200 cases in 2023.

Statistic 107

VR training for tax pros adopted by 5% of large chains in 2023.

Statistic 108

OCR tech in 80% tax software for doc intake.

Statistic 109

Machine learning error detection 92% accuracy in top tools.

Statistic 110

Digital ID verification 40% adoption rate.

Statistic 111

Auto-populate from IRS transcripts 65% usage.

Statistic 112

RPA cuts data entry 70% time savings.

Statistic 113

95% e-signatures for returns in 2023.

Statistic 114

Predictive analytics for refund timing 85% accurate.

Statistic 115

Quantum computing pilots for complex calcs 2% firms.

Statistic 116

Data breaches affected 500k taxpayer records 2023.

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Sources

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Behind every billion-dollar tax season lies an army of over 400,000 dedicated preparers navigating a labyrinth of code changes, rising fees, and a desperate shortage of qualified pros just to get your return filed.

Key Takeaways

In 2023, the U.S. tax preparation industry generated $12.4 billion in revenue, marking a 4.2% increase from 2022 driven by inflation adjustments and higher wage earners.
Global tax preparation software market size reached $10.2 billion in 2022 and is projected to grow to $15.8 billion by 2030 at a CAGR of 5.6%.
U.S. tax prep services market grew by 3.8% in 2023 to $13.1 billion, fueled by complex tax codes post-TCJA.
U.S. employed 412,000 tax preparers seasonally in 2023, peaking during tax season.
Average salary for CPAs in tax prep firms was $128,000 in 2023, up 6% from prior year.
65% of tax preparers are women, comprising 270,000 of total workforce in 2023.
55 million Americans used paid tax prep services in 2022, with 40% repeat customers.
Average fee for professional tax prep was $246 in 2023, up 8% from 2022.
28% of U.S. households used DIY software like TurboTax in 2023.
TurboTax holds 40% market share in DIY software with 35 million users in 2023.
H&R Block processed 20.5 million returns in FY2023, down 2% YoY.
Liberty Tax (part of NextPoint) filed 1.8 million returns in 2023.
68% of small CPA firms use cloud-based tax software in 2023.
AI adoption in tax prep rose to 35% of firms for audit risk in 2023.
Blockchain for tax docs piloted by 12% of large firms in 2023.

The tax preparation industry continues to grow significantly in both revenue and market size.

Company & Competitors

TurboTax holds 40% market share in DIY software with 35 million users in 2023.
H&R Block processed 20.5 million returns in FY2023, down 2% YoY.
Liberty Tax (part of NextPoint) filed 1.8 million returns in 2023.
Jackson Hewitt operates 5,700 offices, second largest chain in 2023.
TaxAct software served 4.2 million customers in 2023.
Drake Software used by 45,000 tax pros for 18 million returns in 2023.
Wolters Kluwer (CCH) holds 15% pro software market share.
Credit Karma Tax (Cash App Taxes) free filers: 2.1 million in 2023.
Professional tax prep market dominated by Big 4 firms for high-net-worth.
H&R Block 23 million clients annually 2023.
TurboTax 37 million DIY filers TY2022.
Jackson Hewitt 2.1 million returns 2023.
TaxSlayer 2.5 million users, growing 15%.
Lacerte pro software 30,000 firms.
UltraTax CS by Thomson Reuters 25% pro share.
FreeTaxUSA 3 million free filers 2023.
Big 4 handle 20% HNW returns >$1M AGI.
75% mid-size firms use Intuit ProSeries.

Company & Competitors Interpretation

TurboTax dominates the do-it-yourself crowd like a charismatic stage magician, H&R Block maintains its vast but slightly receding empire, a constellation of smaller players carve out their niches, and the whole industry quietly agrees that if you're truly rich, you're probably whispering your deductions to someone in a very expensive suit.

Consumer Behavior & Usage

55 million Americans used paid tax prep services in 2022, with 40% repeat customers.
Average fee for professional tax prep was $246 in 2023, up 8% from 2022.
28% of U.S. households used DIY software like TurboTax in 2023.
Low-income filers (<$50k AGI) 65% used free file or VITA in 2023.
42% of filers procrastinated until April 2023 deadline.
Mobile tax app usage grew 22% YoY to 18 million users in 2023.
37% of millennials prefer online tax prep over in-person.
Satisfaction rate with tax prep services at 78% in 2023 surveys.
19% of filers switched providers in 2023 due to cost or errors.
Gig workers (1099) represent 25% of tax prep clients in 2023.
62 million paid preparer returns filed in TY2022.
Avg complex return fee $389 in 2023 NTA survey.
32% used TurboTax Live assisted service 2023.
VITA/Free File served 7.5 million low-income in 2023.
48% filers started prep before Feb 2023.
App-based filing 25 million users up 30% YoY.
Gen Z 51% opt for digital-only tax prep.
NPS score for tax services 72/100 in 2023.
22% switched due to price hikes post-inflation.
Self-employed filers 15 million, 70% use pros.

Consumer Behavior & Usage Interpretation

The American tax prep landscape is a surprisingly loyal and evolving beast, where a majority willingly pay a premium for peace of mind, even as younger generations and mobile apps steadily shift the terrain beneath their feet.

Employment & Workforce

U.S. employed 412,000 tax preparers seasonally in 2023, peaking during tax season.
Average salary for CPAs in tax prep firms was $128,000 in 2023, up 6% from prior year.
65% of tax preparers are women, comprising 270,000 of total workforce in 2023.
Enrolled Agents (EAs) number 53,000 in U.S. as of 2023, credentialed by IRS.
Tax prep industry turnover rate averages 25% annually due to seasonal nature.
72% of tax pros work over 50 hours/week during Jan-Apr 2023 peak season.
Shortage of 100,000 qualified tax preparers projected for 2024 season.
Median hourly wage for tax preparers $24.50 in 2023, varying by certification.
15% of tax workforce are freelancers/contractors in 2023, up from 10% in 2019.
Training hours for new tax preparers average 120 hours annually per firm.
BLS reports 378,000 tax preparer jobs in U.S. May 2023.
CPA tax specialist salary average $142,500 in 2023.
Female representation in tax prep 62% per 2023 census data.
IRS credentials 52,000 EAs active nationwide 2023.
Seasonal hiring peaks at 500,000 workers Jan-Mar.
58% tax pros bill 55+ hours/week in peak 2023.
85,000 tax pro shortage forecasted for 2025.
Tax clerk median wage $22.10/hour in 2023 BLS.
Gig tax preparers 20% of workforce via platforms.
CPE credits average 40 hours/year for credentialed pros.

Employment & Workforce Interpretation

The tax prep industry is a high-stress, female-dominated field where credentialed experts earn serious money, freelancers are on the rise, and everyone is desperately overworked because, despite the grueling hours and seasonal churn, we still can't find enough people to decipher the government's annual puzzle.

Market Size & Growth

In 2023, the U.S. tax preparation industry generated $12.4 billion in revenue, marking a 4.2% increase from 2022 driven by inflation adjustments and higher wage earners.
Global tax preparation software market size reached $10.2 billion in 2022 and is projected to grow to $15.8 billion by 2030 at a CAGR of 5.6%.
U.S. tax prep services market grew by 3.8% in 2023 to $13.1 billion, fueled by complex tax codes post-TCJA.
H&R Block reported $3.5 billion in revenue for FY2023, with Tax Services segment at $2.9 billion up 5% YoY.
Intuit's Small Business & Self-Employed Group, including TurboTax, generated $6.1 billion in FY2023, up 13% YoY.
Tax preparation franchise market in U.S. valued at $8.7 billion in 2023 with 25,000+ locations.
Online tax prep market share reached 45% of U.S. filings in 2023, up from 38% in 2020.
U.S. tax prep industry CAGR from 2018-2023 was 3.1%, projected 4.0% through 2028.
Canada tax preparation market size was CAD 2.1 billion in 2023, growing 4.5% annually.
Europe tax software market expected to hit €5.2 billion by 2027 from €4.1 billion in 2022.
U.S. tax preparation industry generated $12.4 billion in revenue in 2023, up 4.2%.
Tax software market in U.S. valued at $4.8 billion in 2023, CAGR 6.1%.
Professional tax services segment $8.6 billion in U.S. 2023.
Intuit TurboTax revenue $3.2 billion in FY2023.
H&R Block digital revenue up 10% to $450 million in 2023.
Franchise tax prep revenue $9.2 billion across 28,000 U.S. locations 2023.
E-file market penetration 45% for paid software in 2023.
Industry projected to reach $15.2 billion by 2028 at 3.9% CAGR.
Australia tax prep market AUD 1.8 billion in 2023.
UK tax software market £1.2 billion growing 7% annually.
U.S. tax prep revenue per capita $37 in 2023.

Market Size & Growth Interpretation

The tax preparation industry is thriving on collective confusion, turning our universal dread of the IRS into a multi-billion-dollar global enterprise where complexity is the product and we are all eager buyers.

Regulatory & Compliance

TCJA sunsets in 2025 will affect 60% of filers with rate changes.
IRS Direct File pilot reached 140,000 users in 12 states in 2024.
PTIN holders: 362,000 active as of Dec 2023.
Audit rate for individuals under $400k AGI dropped to 0.2% in 2023.
State tax conformity to federal changes varies; 32 states decoupled SALT.
CARES Act credits claimed in 45 million amended returns through 2023.
Circular 230 violations led to 1,500 sanctions in 2023.
ERC fraud claims totaled $8.4 billion disallowed in 2023 audits.
FATCA reporting compliance rate 92% for foreign accounts in 2023.
Inflation Reduction Act funds IRS modernization $80B.
PTC 201 for clean energy claims up 300% 2023.
362,872 PTINs renewed for 2024 season.
Schedule C audits rose 12% for ERC claims.
41 states updated conformity to federal 2023 changes.
RMD waiver for 2023 extended to 2024.
2,100 Circular 230 penalties issued 2023.
Gig economy Form 1099-K threshold $600 starts 2024.
BEPS 2.0 global min tax impacts 15% MNEs.

Regulatory & Compliance Interpretation

The tax industry is bracing for the 2025 sunset of TCJA while juggling a deluge of complex new credits and enforcement priorities, reminding us all that the only certainties in life are taxes and the people who help us navigate them.

Technology & Innovation

68% of small CPA firms use cloud-based tax software in 2023.
AI adoption in tax prep rose to 35% of firms for audit risk in 2023.
Blockchain for tax docs piloted by 12% of large firms in 2023.
Mobile scanning for W-2s used by 55% of TurboTax filers in 2023.
Cloud tax software market grew 18% to $4.5 billion in 2023.
Robotic Process Automation (RPA) implemented in 28% of tax depts.
E-filing rate reached 90.1% of individual returns in 2022 TY.
API integrations for bank data used by 62% of software platforms.
Cybersecurity incidents in tax firms up 15% to 1,200 cases in 2023.
VR training for tax pros adopted by 5% of large chains in 2023.
OCR tech in 80% tax software for doc intake.
Machine learning error detection 92% accuracy in top tools.
Digital ID verification 40% adoption rate.
Auto-populate from IRS transcripts 65% usage.
RPA cuts data entry 70% time savings.
95% e-signatures for returns in 2023.
Predictive analytics for refund timing 85% accurate.
Quantum computing pilots for complex calcs 2% firms.
Data breaches affected 500k taxpayer records 2023.

Technology & Innovation Interpretation

While the tax prep industry races to the cloud and toys with blockchain, this digital gold rush is hilariously shadowed by a surge in cyberattacks, proving that for every slick AI audit tool and mobile scan, there's a human hacker eagerly waiting to file a fraudulent return.

Sources & References

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