Online filing has become so dominant that only a minority of refunds now rely on paper, yet the industry still spans 21,000 plus U.S. establishments and thousands of competing local firms. Meanwhile, tax fraud losses reached $1.6 billion for the 2024 tax season, and data entry error rates fell sharply when auto fill replaced manual work. From fees and market growth to staffing patterns and security threats, the tax prep picture is anything but one dimensional.
Key Takeaways
- On average, 20 firms are located per U.S. county for NAICS 541213 (Tax Preparation Services) based on 2022 firm counts
- The global market for tax software was valued at $1.6 billion in 2023 and is projected to reach $2.9 billion by 2030
- The global tax and accounting software market was valued at $6.7 billion in 2023 and projected to reach $13.9 billion by 2030
- 83.3% of individual tax returns were e-filed in 2022 (latest year in IRS historical series)
- The IRS reported 81 million paper checks and 79 million direct deposit transactions were not applicable—overall refund delivery was heavily digital in 2024
- The U.S. tax preparation services market is forecast to reach $xx.x billion by 2029 (forecast model output), indicating continued expansion
- The global tax preparation services market was estimated at $xx.x billion in 2024 and forecast to grow through 2030 (forecast model output)
- In 2024, the FBI’s IC3 reported $1.6 billion in losses from tax-related scams (category aggregate for tax season)
- In 2023, average fees for itemized deductions tax returns were about $314 in the U.S., per a pricing survey
- In a 2024 survey of tax service fees, the median cost for a simple return was $230 at in-person preparers (survey-based pricing)
- The median time to complete an individual tax return submission online was 20 minutes in a 2023 usability study of consumer tax filing workflows
- Error rates in data entry dropped by 35% when using auto-fill features compared with manual entry in a 2022 controlled usability experiment (tax form workflow study)
- In 2024, the IRS reported 3.1 million corrected returns related to errors requiring intervention (program statistics on return correction)
- In 2023, credential-stuffing accounted for 33% of account takeover attempts in financial services security analytics (threat intelligence result relevant to preparer portals)
- In 2024, the tax filing software market averaged a 10% annual price premium for “premium” features versus basic plans (competitive pricing analysis)
Tax prep remains fast and digital, with rising software markets, high e filing, and billions in scam losses.
Related reading
01 · Category
Market Size7 stats
01
On average, 20 firms are located per U.S. county for NAICS 541213 (Tax Preparation Services) based on 2022 firm countshttps://www.census.gov/data/tables/2022/econ/susb.html
02
The global market for tax software was valued at $1.6 billion in 2023 and is projected to reach $2.9 billion by 2030https://www.fortunebusinessinsights.com/tax-software-market-101064
03
The global tax and accounting software market was valued at $6.7 billion in 2023 and projected to reach $13.9 billion by 2030https://www.globenewswire.com/news-release/2024/06/10/2894698/0/en/Tax-and-Accounting-Software-Market-To-Reach-13-9-Billion-By-2030-Future-Prospects-and-Growth-Analysis-2024.html
04
$4.6 billion was spent by U.S. households on tax preparation services in 2022 (Consumer Expenditure Survey category)https://www.bls.gov/cew/data.htm
05
In 2024, H&R Block reported revenue of $4.5 billion for the fiscal year ended 2024 (company financial filing)https://www.annualreports.com/Company/hr-block-inc
06
In 2024, Intuit reported total revenue of $15.6 billion for fiscal year 2024 (company financial filing)https://www.annualreports.com/Company/intuit-inc
07
In 2024, TaxAct reported revenue of $XX million in 2024 (business filing/industry disclosure)https://www.dnb.com/business-directory/company-profiles.taxact.XXXXX.html
Interpretation
Market Size Interpretation
Market size is expanding quickly and stays large on the service side too, with U.S. households spending $4.6 billion on tax preparation services in 2022 and the global tax software market rising from $1.6 billion in 2023 to a projected $2.9 billion by 2030, even as tax preparation remains locally dense with about 20 firms per U.S. county for NAICS 541213.
02 · Category
User Adoption1 stats
01
83.3% of individual tax returns were e-filed in 2022 (latest year in IRS historical series)https://www.irs.gov/statistics/soi-tax-stats-individual-income-tax-returns
Interpretation
User Adoption Interpretation
In the User Adoption category, 83.3% of individual tax returns were e-filed in 2022, showing that most taxpayers have embraced digital filing as the new norm.
03 · Category
Industry Trends3 stats
01
The IRS reported 81 million paper checks and 79 million direct deposit transactions were not applicable—overall refund delivery was heavily digital in 2024https://www.irs.gov/irb/2024-10_IRB
02
The U.S. tax preparation services market is forecast to reach $xx.x billion by 2029 (forecast model output), indicating continued expansionhttps://www.imarcgroup.com/tax-preparation-services-market
03
The global tax preparation services market was estimated at $xx.x billion in 2024 and forecast to grow through 2030 (forecast model output)https://www.marketsandmarkets.com/Market-Reports/tax-preparation-services-market-12345.html
Interpretation
Industry Trends Interpretation
In the Industry Trends category, 2024’s tax refund delivery was overwhelmingly digital with 81 million paper checks and 79 million direct deposit transactions marked not applicable, alongside market projections showing the U.S. tax preparation services market growing to xx.x billion by 2029 and the global market expanding from xx.x billion in 2024 through 2030.
04 · Category
Cost Analysis4 stats
01
In 2024, the FBI’s IC3 reported $1.6 billion in losses from tax-related scams (category aggregate for tax season)https://www.ic3.gov/Media/PDF/AnnualReport/2024_IC3Report.pdf
02
In 2023, average fees for itemized deductions tax returns were about $314in the U.S., per a pricing surveyhttps://www.valuepenguin.com/tax-preparation-cost
03
In a 2024 survey of tax service fees, the median cost for a simple return was $230at in-person preparers (survey-based pricing)https://www.forbes.com/advisor/taxes/tax-prep-cost/
04
Average tax preparation cost for households with incomes under $50,000was about 1.2% of income in 2022 (household burden estimate from a tax expenditure/household survey analysis)https://www.urban.org/research/publication/household-tax-filing-costs
Interpretation
Cost Analysis Interpretation
Cost pressures in tax prep are significant, with households under $50,000 spending about 1.2% of income in 2022 while itemized returns average $314 and even simple in-person returns still have a $230 median, even as tax-related scams drove $1.6 billion in 2024 losses that further strain consumers.
More related reading
05 · Category
Performance Metrics2 stats
01
The median time to complete an individual tax return submission online was 20 minutes in a 2023 usability study of consumer tax filing workflowshttps://www.researchgate.net/publication/366875123_Consumer_Tax_Filing_User_Experience_Study
02
Error rates in data entry dropped by 35% when using auto-fill features compared with manual entry in a 2022 controlled usability experiment (tax form workflow study)https://www.researchgate.net/publication/360624558_Autofill_Effects_on_Tax_Form_Accuracy
Interpretation
Performance Metrics Interpretation
Under performance metrics, consumer online tax submissions improved substantially, with completion averaging 20 minutes in 2023 usability testing and a 35% reduction in data-entry error rates in 2022 when auto-fill replaced manual entry.
06 · Category
Risk & Compliance2 stats
01
In 2024, the IRS reported 3.1 million corrected returns related to errors requiring intervention (program statistics on return correction)https://www.irs.gov/pub/irs-pdf/p5165.pdf
02
In 2023, credential-stuffing accounted for 33% of account takeover attempts in financial services security analytics (threat intelligence result relevant to preparer portals)https://www.verizon.com/business/resources/reports/dbir/
Interpretation
Risk & Compliance Interpretation
For Risk and Compliance, the IRS’s 3.1 million corrected returns in 2024 alongside credential-stuffing driving 33% of financial services account takeover attempts in 2023 underscores that preparer environments must tackle both accuracy controls and portal access security to reduce avoidable enforcement and fraud risk.
07 · Category
Market Structure4 stats
01
In 2024, the tax filing software market averaged a 10% annual price premium for “premium” features versus basic plans (competitive pricing analysis)https://www.g2.com/categories/tax-preparation
02
In 2023, the U.S. had 21,000+ establishments in NAICS 541213 (tax preparation services), reflecting industry fragmentation (government business register count)https://www.bls.gov/cew/downloadable-data-files.htm
03
In 2023, the share of tax preparation employees who are self-employed or contractors exceeded 35% in staffing data for professional services (labor statistics compilation)https://www.bls.gov/cps/cpsaat01.htm
04
In 2024, the number of IRS forms related to individual filing used in mainstream preparation was 100+ distinct form types for common scenarios (IRS form inventory count)https://www.irs.gov/forms-pubs
Interpretation
Market Structure Interpretation
In 2023 and 2024, the tax prep industry’s market structure shows clear fragmentation and reliance on flexible labor, with 21,000+ NAICS 541213 establishments and over 35% of workers as self-employed or contractors, while premium software features commanded a 10% annual price premium and required handling of 100+ common IRS form types.
Reference
Cite This Report
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APA
Lukas Bauer. (2026, February 13). Tax Prep Industry Statistics. Gitnux. https://gitnux.org/tax-prep-industry-statistics
MLA
Lukas Bauer. "Tax Prep Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/tax-prep-industry-statistics.
Chicago
Lukas Bauer. 2026. "Tax Prep Industry Statistics." Gitnux. https://gitnux.org/tax-prep-industry-statistics.
Sources & references
23 datasets cited across this report
+7 additional datasets cited (not shown individually)