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Job outlook for tax managers in the United States
Tax manager job growth summary. After extensive research, interviews, and analysis, Zippia's data science team found that:
The projected tax manager job growth rate is 17% from 2018-2028.
About 123,100 new jobs for tax managers are projected over the next decade.
Tax manager salaries have increased 10% for tax managers in the last 5 years.
There are over 19,129 tax managers currently employed in the United States.
There are 79,204 active tax manager job openings in the US.
The average tax manager salary is $96,100.
Are tax manager jobs in demand?
Tax Manager job and salary trends over time
Tax Manager jobs over time
Tax Manager job growth rate over time
Year  | # Of Jobs | % Of Population |
|---|---|---|
| 2021 | 19,129 | 0.01% |
| 2020 | 18,446 | 0.01% |
| 2019 | 18,522 | 0.01% |
| 2018 | 17,910 | 0.01% |
| 2017 | 17,385 | 0.01% |
Average tax manager salary over time
Tax Manager salary by year
| Year | Avg. Salary | Hourly Rate | % Change |
|---|---|---|---|
| 2025 | $96,100 | $46.20 | +3.3% |
| 2024 | $93,027 | $44.72 | +1.5% |
| 2023 | $91,667 | $44.07 | +2.3% |
| 2022 | $89,582 | $43.07 | +2.7% |
| 2021 | $87,197 | $41.92 | +3.2% |
Tax Manager jobs by state
Most common states for tax managers
| Rank | State | Population | # of Jobs | Employment/ 1000ppl |
|---|---|---|---|---|
| 1 | District of Columbia | 693,972 | 309 | 45% |
| 2 | Massachusetts | 6,859,819 | 961 | 14% |
| 3 | Rhode Island | 1,059,639 | 146 | 14% |
| 4 | Washington | 7,405,743 | 995 | 13% |
| 5 | Connecticut | 3,588,184 | 474 | 13% |
| 6 | Delaware | 961,939 | 128 | 13% |
| 7 | Illinois | 12,802,023 | 1,531 | 12% |
| 8 | Minnesota | 5,576,606 | 656 | 12% |
| 9 | Iowa | 3,145,711 | 383 | 12% |
| 10 | Virginia | 8,470,020 | 954 | 11% |
| 11 | Maryland | 6,052,177 | 654 | 11% |
| 12 | Missouri | 6,113,532 | 645 | 11% |
| 13 | Colorado | 5,607,154 | 615 | 11% |
| 14 | Oregon | 4,142,776 | 452 | 11% |
| 15 | Utah | 3,101,833 | 351 | 11% |
| 16 | California | 39,536,653 | 4,049 | 10% |
| 17 | New Hampshire | 1,342,795 | 135 | 10% |
| 18 | New York | 19,849,399 | 1,835 | 9% |
| 19 | Pennsylvania | 12,805,537 | 1,123 | 9% |
| 20 | New Jersey | 9,005,644 | 813 | 9% |
Most common cities for tax managers
| Rank | City | # of Jobs | Employment/ 1000ppl | Avg. Salary |
|---|---|---|---|---|
| 1 | Hartford | 31 | 25% | $99,187 |
| 2 | Stamford | 29 | 22% | $99,115 |
| 3 | Grand Rapids | 29 | 15% | $87,683 |
| 4 | Atlanta | 61 | 13% | $84,322 |
| 5 | Boston | 73 | 11% | $96,506 |
| 6 | Irvine | 29 | 11% | $97,182 |
| 7 | Miami | 46 | 10% | $85,132 |
| 8 | San Francisco | 58 | 7% | $107,226 |
| 9 | Detroit | 46 | 7% | $89,423 |
| 10 | Sacramento | 34 | 7% | $106,940 |
| 11 | Minneapolis | 28 | 7% | $79,803 |
| 12 | Tampa | 28 | 7% | $86,674 |
| 13 | San Jose | 49 | 5% | $106,200 |
| 14 | Indianapolis | 42 | 5% | $80,224 |
| 15 | Denver | 31 | 4% | $76,516 |
| 16 | Washington | 29 | 4% | $103,369 |
| 17 | Chicago | 74 | 3% | $89,090 |
| 18 | Phoenix | 48 | 3% | $90,652 |
| 19 | San Diego | 41 | 3% | $96,205 |
| 20 | Los Angeles | 83 | 2% | $97,780 |
Tax Manager job outlook: Expert opinions
Our panel of tax manager experts
Gonzaga University
The University of Texas at Arlington
Indiana University Northwest
Case Western Reserve University
DePaul University
South College
What general advice would you give to a Tax Manager?
Andrew Brajcich: Tax technical skills will always be important. But now those are just table stakes. To be a value-adding advisor to your client or team, you need technological skills including some coding and database management skills. And it has to be more than Excel. I don’t care if it’s exposure to Python or SQL or Tableau or Alteryx or something else. You need to understand how technologies work because they will change but the fundamental concepts behind the tools remain.
What Tax Manager skills would you recommend for someone trying to advance their career?
Andrew Brajcich: Ask yourself, “What can I do to make the job of the person above me easier.” That should be your guiding light. If you approach every workday with that, you’ll soon find yourself on better clients, working with better teams, and moving up in the organization.
What will help Tax Managers increase their earning potential?
Andrew Brajcich: 1) Be open to anything. You might be surprised at what you discover. 2) Be nimble. Most career paths are a zig zag. Few are direct. 3) Learn how to leverage AI without being over reliant. In tax, it has a long ways to go so hop on for the ride but double check every aspect of the work product. You can learn with it. And of course get permission before using any tools.
What general advice would you give to a Tax Manager?
Kenton Klaus: As noted above, the best way to maximize salary potential is to quickly narrow down the areas of tax where the graduate student can separate themselves from other candidates. If the graduate student did his or her homework before finishing their graduate studies, they will be able to demonstrate to employers that they have a deeper knowledge of the technical areas in which they have an interest, along with the applicable technology.
What Tax Manager skills would you recommend for someone trying to advance their career?
Kenton Klaus: Taxation is a very broad discipline, so it's important for a new tax professional to understand all the opportunities available for them to use their graduate degree. In some cases, graduate students have already been in the workforce, and have specific plans to return to a certain area of practice. However, many students have not explored the available opportunities to see which line up best with their interests and skills. I encourage graduate students to explore the market before they graduate, reach out to alumni who work in different areas of the tax profession, and speak with the professors for the courses that most interested them.
What will help Tax Managers increase their earning potential?
Kenton Klaus: Taxation is a very broad discipline, so it's important for a new tax professional to understand all the opportunities available for them to use their graduate degree. In some cases, graduate students have already been in the workforce, and have specific plans to return to a certain area of practice. However, many students have not explored the available opportunities to see which line up best with their interests and skills. I encourage graduate students to explore the market before they graduate, reach out to alumni who work in different areas of the tax profession, and speak with the professors for the courses that most interested them.
What general advice would you give to a Tax Manager?
Dr. J. Klaus Ph.D., CPA (KY): Choosing a career in accounting today is particularly appealing due to the strong demand for skilled professionals in the field. Accounting stands out for its stability, offering a secure and reliable career path. The diversity within the profession, including areas like tax accounting and financial analysis, provides individuals with flexibility to align their work with their specific interests. With a global relevance, accountants are in high demand internationally. The current technological advancements have streamlined routine tasks, allowing professionals to focus on more strategic aspects of their roles. Pursuing well-regarded certifications, such as the CPA designation, ensures continuous learning and opens avenues for career advancement. Additionally, the flexibility for remote work and potential for entrepreneurial ventures make accounting a highly sought-after and promising choice in response to the prevalent demand for skilled professionals.
What Tax Manager skills would you recommend for someone trying to advance their career?
Dr. J. Klaus Ph.D., CPA (KY): Some individuals may find the work routine and meticulous, as attention to detail is paramount in accounting. Meeting deadlines, especially during tax season, can lead to periods of heightened stress. Additionally, the demanding nature of staying abreast of ever-changing tax laws and regulations can be seen as both a positive challenge for those who enjoy continuous learning and a potential source of stress for others. Overall, while accounting provides stability and numerous rewarding aspects, it also requires a commitment to precision and adaptability to navigate its challenges.
What will help Tax Managers increase their earning potential?
Dr. J. Klaus Ph.D., CPA (KY): Tax accountants hold a pivotal role in managing financial records, ensuring tax compliance, and offering strategic financial guidance. Their daily activities encompass preparing tax returns, conducting financial analyses, and staying abreast of dynamic tax regulations. Recent graduates embark on a fulfilling journey, starting with foundational tasks and progressing through training, collaboration with experienced professionals, and client engagement. This profession offers continuous learning opportunities, with many aspiring to attain certifications like the CPA designation. Ultimately, becoming a tax accountant is not only rewarding but also crucial in contributing to financial transparency, efficiency, and compliance for individuals and businesses alike.
Jaclyn Barkow
Clinical Assistant Professor of AccountingIndiana University Northwest
Accounting Department
What soft skills should all Tax Managers possess?
Jaclyn Barkow: The most valuable soft skill is communication. Being able to communicate effectively with colleagues, superiors, and clients. Communication comes in the form of written and oral. Effective communication also entails knowing when to listen, when to respond, and asking questions. Young accountants will also not know everything upon entering the workplace; asking questions is important for the learning process.
What skills stand out on Tax Manager resumes?
Jaclyn Barkow: I do not do company hiring, but from my interactions with employers, major items that stand out on resumes are having an internship or completing volunteer work preparing tax returns. Successfully completing an internship shows the student what to expect during tax season and the challenges that come with it. Employers know that students understand the profession and know what they are applying for. Those who volunteer to prepare tax returns through local organizations (United Way, or AARP, for example) demonstrate the ability to pass IRS certification requirements, prepare tax returns, and in the process help the community.
What hard/technical skills are most important for Tax Managers?
Jaclyn Barkow: Understanding tax return preparation is important. This is where the internship or volunteer work stands out on resumes. Tax law changes every year, so remembering what is in a textbook becomes obsolete year after year. Research skills are important for keeping up with the ever-changing tax law.
The profession is also changing so that tax accountants must have a working understanding of information security and maintaining client information confidentially. Data security is extremely important in the profession, and identity theft is very common in tax return preparation. Having some technical information systems and information security understanding is valuable to maintaining sensitive information.
Thomas King
Department Chair, Director, Master of Accountancy Program, Professor, AccountancyCase Western Reserve University
Accountancy Department
What hard/technical skills are most important for Tax Managers?
Thomas King: The ability to extract information from unfamiliar data sets and then explain conclusions reached in a clear, persuasive manner.
Will there be an enduring impact of the coronavirus pandemic on Tax Managers?
Delvin Grant: Yes. I strongly believe coronavirus will have a lasting impact on new graduates. A increasing paradigm shift is taking place as we speak, as some IT-related jobs can be done remotely. I expect the shift to continue until a steady state condition is achieved, when companies feel they have the right mix of remote and face-to-face employment. Some companies may resist the trend, valuing face-to-face over remote working. Face-to-face satisfies a human need to socialize and, in some cultures, much business is done by face-to-face. There is evidence of a paradigm shift as many IT employees work remotely, due to the pandemic. Some companies have realized the shift is here to stay and others take a wait and see attitude. It is hard not to recognize the shift as there are cost saving from office rent, office space, heating, cooling, computing cost, travel costs, etc. The impact will vary by profession. IT and other professions are a natural fit for remote working while others are not. For example, a chemist working in a lab environment cannot work from home as his lab is the only place to mix and experiment with chemicals and chemistry.
What are the biggest trends we'll see in the Tax Manager job market given the pandemic?
D. Pace Porter: I believe the need for accounting and financial expertise will even be greater as a result of the pandemic. First, the increased technical accounting and reporting requirements related to risks disclosures, impairment analysis and so forth, and the tax and compliance requirements as a result of the various Coronavirus relief and stimulus legislation, will prompt an increase in demand whether through in-house personnel or through CPA firms. Trends toward more technologically advanced graduates began before the pandemic but will accelerate as a result of it. More importantly, however, is the need for improving economic and operational efficiencies, and therefore cash flow, for businesses to continue as a going concern throughout this pandemic and position themselves for growth once things return to some sort of normal. Accounting and financial expertise has an increasingly important role to play here.