How much does tax preparation cost?
Professional tax prep typically runs about $300 for an itemized 1040 with a state return; simple returns average $176 and business returns $600+.
Key takeaways
- A basic Form 1040 with a state return averaged $176 in the National Society of Accountants (NSA) fee survey; an itemized 1040 with Schedule A and a state return averaged $273 (NSA 2016) to $323 (NSA 2020-2021).
- Complexity is the main driver: each added schedule costs roughly $118 (Schedule D) to $192 (Schedule C, business) on top of the base return.
- Business returns cost far more — NATP reports an average minimum of about $634, and NSA put a C-corporation (Form 1120) near $913.
- Hourly billing is common: NATP's 2025 data shows a $182 average, with half of preparers charging between $129 and $250 per hour.
- DIY tax software is much cheaper than hiring a CPA or enrolled agent, but it shifts the research, data entry, and audit risk onto you.
Hiring a professional to prepare an individual tax return typically costs about $300. A simple Form 1040 filed with a state return averaged $176 in the National Society of Accountants (NSA) fee survey, while an itemized 1040 with a Schedule A and a state return ran $273 (NSA 2016) to $323 (NSA 2020-2021). Returns with business, rental, or investment activity climb toward $450–$900+. DIY software is cheaper but shifts the work to you.
What tax preparation costs by return type
Fees depend far more on which forms and schedules your return needs than on who prepares it. The figures below come from the National Society of Accountants (NSA) biennial fee survey and 2025 data from the National Association of Tax Professionals (NATP), as compiled by the sources cited.
| Return type | Typical fee | Source |
|---|---|---|
| Form 1040 + state, no itemizing | $176 | NSA (2016) |
| Itemized 1040 (Schedule A) + state | $273–$323 | NSA 2016 / 2020-2021 |
| Basic 1040 (average CPA fee) | ~$280 | NATP (2025) |
| 1040 with Schedule C (self-employed) + state | $457 | NSA (2016) |
| Add a Schedule C / E / D | +$118 to +$192 each | NSA (2020-2021) |
| Partnership (Form 1065) | $656–$733 | NSA |
| S-corp (1120-S) / C-corp (1120) | $903 / $826–$913 | NSA |
| Hourly rate | $129–$250 (avg $182) | NATP (2025) |
Regional differences are real: NSA data showed an itemized 1040 ranging from about $210 in Alabama, Kentucky, Mississippi and Tennessee to $333 in New England. Credential also matters — a basic 1040 averaged about $280 with a CPA, $228 with an enrolled agent, and roughly $185 with a non-credentialed preparer, per NATP figures.
CPA vs. tax software
DIY tax software is the low-cost route and handles most straightforward W-2 and standard-deduction situations. Hiring a CPA, enrolled agent, or other preparer costs more but buys expertise, time savings, and someone who can represent you if the IRS has questions. The break-even point usually arrives once you add itemized deductions, self-employment income, rental property, investment sales, or multiple state filings — exactly the schedules that push professional fees up.
What moves the price
- Number of forms and schedules. Each added schedule (C for business, E for rentals, D for investments) adds roughly $118–$192, per NSA data — the single biggest cost lever.
- Individual vs. business return. Business entities cost multiples of an individual return; NATP reports an average minimum near $634 for business returns.
- Preparer credential. CPAs generally charge more than enrolled agents or non-credentialed preparers for the same base return.
- Region. Coastal and New England metros run higher than the South and rural areas.
- Recordkeeping. Disorganized or incomplete records trigger a surcharge — about $166 on average, charged by most preparers per NATP data.
- State returns and multi-state filing. Each additional state return adds to the base fee.
These are averages from professional-preparer surveys, not quotes. Ask for a written estimate up front, confirm whether the fee is flat or hourly, and ask which schedules are included. Prices vary by complexity, credential, and region and are current as of the verified date.
Frequently asked questions
How much does it cost to have a CPA do my taxes?
A basic Form 1040 averages around $280 with a CPA (NATP 2025). An itemized return with a Schedule A and state filing runs about $273–$323 (NSA), and returns with business or rental schedules climb to $450–$900+.
Is tax software cheaper than hiring a preparer?
Yes. DIY tax software costs far less than a professional and works well for simple W-2 returns. The trade-off is that you do the data entry and research and carry the audit risk yourself. Complexity — self-employment, rentals, investments — is where a professional tends to pay off.
Why does my tax preparation cost more than the average?
Extra schedules are the main reason. Each added schedule (C, D, or E) adds roughly $118–$192 per NSA data. Multiple state returns, business filings, and disorganized records (about a $166 surcharge) also raise the fee.
Do tax preparers charge flat fees or by the hour?
Both are common. Many charge a flat fee per form or schedule, while others bill hourly — NATP's 2025 data shows a $182 average, with half of preparers between $129 and $250 per hour. Ask which method applies before you commit.
How much does a business tax return cost to prepare?
Business returns cost far more than individual ones. NSA figures put a partnership (Form 1065) near $656–$733 and corporations (Forms 1120 / 1120-S) in the $826–$913 range; NATP reports an average minimum of about $634 for business returns.
Does where I live affect tax prep fees?
Yes. NSA survey data showed an itemized 1040 ranging from about $210 in parts of the South to $333 in New England, so regional cost of living is a meaningful factor.
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