Average Cost of Tax Preparation by a CPA

A CPA charges about $280 on average to prepare a basic Form 1040 with Schedules 1–3, according to the NATP 2025 Fee Study. Accounting Today also reports the detailed figure. That is a base benchmark for one defined return, not an all-in price.

Real returns usually cost more. Published 2026 CPA price sheets start near $300–$395 for a simple individual return, then rise with itemized deductions, self-employment, rentals, investments and extra states. Business returns sit in a higher tier: NATP reports a $634 average minimum fee for business forms, and two firms’ 2026 price sheets list partnership and S corporation returns at $1,200–$1,350.

Use $280 as the reference point for a simple return, then price your own complexity. The rest of this guide shows how.

In this blog, you’ll learn:

• $280 is a starting benchmark, not your actual price. NATP’s 2025 average of $280 for a CPA’s base Form 1040 with Schedules 1–3 is a benchmark for a defined, relatively simple return. Most tax returns involve additional forms, schedules, or services that can increase the fee.
• Tax return complexity drives CPA tax preparation costs. Published 2026 prices start at $300–$395 for a simple individual return and increase with self-employment, rental properties, investments, and additional states. Business tax returns start at $1,200–$1,350 in the firm price sheets reviewed.
• Not every “average” means the same thing. A survey average, minimum fee, starting price, and actual CPA quote represent different pricing measures. Compare the methodology and scope before treating any figure as a typical tax preparation cost.
• Compare the scope of services before comparing price. Two CPA tax preparation quotes can differ because one includes state returns, K-1s, bookkeeping cleanup, notice support, or tax planning while another charges separately for those services. Use the nine-question checklist to compare quotes on the same scope.
• You can estimate your tax preparation cost before contacting a CPA. The points-based worksheet converts the complexity of your tax return into a complexity level and planning range, giving you a clearer expectation before requesting a quote.

CPA Tax Preparation Cost

No single number applies to every tax return, so this table keeps three types of evidence separate: a survey benchmark, published 2026 firm prices, and our editorial planning range.

Other NATP 2025 benchmarks, for comparison with the CPA base fee: $236 for all preparers, $228 for enrolled agents, and about $185 for non-credentialed preparers, all for the same base return. Where fees are billed hourly, NATP’s average rate is $182 per hour (all preparers).

Reading the table: the NATP add-on ranges are reported across community sizes and cover all preparers, not CPAs only. The $634 figure is an average floor, not a typical invoice. Firm prices are one firm’s published list, checked on the research date. Rental and multi-state benchmarks are left blank because the NATP figures we could verify do not report them separately.

What is Included in a CPA Tax Preparation Fee?

A base CPA fee generally covers preparing and e-filing the return that the firm defines as its “base” return. Anything outside that definition is either an add-on or a separate engagement, and the definition varies by firm.

NATP’s benchmark defines the base return as Form 1040 with Schedules 1–3. Those three schedules cover additional income and adjustments (Schedule 1), additional taxes (Schedule 2), and additional credits and payments (Schedule 3). A return with business, rental, or investment activity goes beyond that definition.

The split shows up in published prices. Charitax bundles one state and one local return into its $395 base, then adds fees for Schedule C, rental income, extra states, dependent returns and the Earned Income Credit, and custom-quotes stock and crypto sales.

NATP’s survey shows the same logic in how firms build a quote: 48% of respondents charge a base fee plus the additional hours needed, and 39% set a fee for each form (Accounting Today, reporting NATP 2025).

How Much Does a CPA Charge for an Individual Tax Return?

A simple individual tax return averages $280 at a CPA, based on the NATP survey benchmark, and each additional schedule can increase the fee. The subsections below distinguish between a survey benchmark, a published 2026 firm price, and our planning range.

How much does a CPA charge for a simple Form 1040?

A W-2 return with the standard deduction and one state is the closest match to NATP’s $280 CPA base benchmark. Published 2026 prices start at $300 for a W-2, standard-deduction return from ProAxis and $395 from Charitax, including one state and one local return. Our planning range for a simple real-world return is $300–$500.

For current-market context, Ignition’s 2025 benchmark found that the most common individual tax return fee range among surveyed firms was $400–$599, reported by 27% of respondents, according to Accounting Today. Its 219 respondents were Ignition customers, so treat this as market context rather than a national average.

How much does a CPA charge for an itemized return?

Itemizing deductions adds Schedule A, which is used to report itemized deductions, and NATP reports a $53–$61 add-on for it across preparers. ProAxis lists itemized returns with investments starting at $500. Our planning range is $400–$700+.

Historical data shows a similar premium. The National Society of Accountants (NSA) reported national averages of $220 for a non-itemized Form 1040 with a state return and $323 for an itemized return in its 2020–2021 survey. That is a $103 difference, but both figures are from 2020–2021 and are not 2026 averages.

How much does a CPA charge for a self-employed return?

Self-employment income is reported on Schedule C (Profit or Loss From Business), and it is a common reason a base fee no longer applies. NATP reports a $123–$135 Schedule C add-on across preparers. Published 2026 prices start at $650 at ProAxis. At Charitax, the add-on is $150 without expenses and $300 with expenses, bringing the total to $545–$695. Our planning range is $400–$800+.

The add-on reflects the additional work required to categorize income and expenses, so record quality matters. NSA’s 2020–2021 Schedule C add-on was $192, which is a historical benchmark only.

How much does a CPA charge for a rental property return?

Rental income is reported on Schedule E (Supplemental Income and Loss), and the fee usually scales with the number of properties. ProAxis starts at $700 for one to three properties. Charitax charges $300 for the first rental and $200 for each additional property, making the total for three rentals $1,095 with its $395 base fee. Our planning range is $600–$1,000+.

NSA’s 2020–2021 Schedule E add-on averaged $145, which is a historical benchmark only.

How much does a CPA charge for an investor’s return?

Investment sales are reported on Schedule D (Capital Gains and Losses), with transactions generally detailed on Form 8949. NATP reports a $56–$66 Schedule D add-on across preparers, while NSA’s 2020–2021 average add-on was $118, which is historical. Charitax custom-quotes stock and crypto sales rather than listing a flat price because the work depends on the number of transactions and the quality of the broker data.

How much does a CPA charge for a multi-state return?

Each additional state or local return can add preparation and filing work. Charitax charges $100 for each additional state or local return, while ProAxis lists multi-state individual returns starting at $650. Our planning range is $600–$1,000+, although many firms scope each jurisdiction separately.

How Much Does a CPA Charge for a Business Tax Return?

Business tax returns generally cost more than individual returns because each entity return is a separate filing in addition to the owner’s personal return. NATP reports an average minimum fee of $634 for business forms, with half of its respondents setting that minimum between $350 and $850, according to Accounting Today, which reported on the NATP 2025 study. Ignition’s 2025 benchmark found that $1,000–$1,499 was the most common business tax return fee range, reported by 29% of surveyed firms.

Businesses that need a partnership, S corporation, or C corporation return often need financial statement preparation services to organize income statements, balance sheets, cash flow statements, and supporting schedules before tax filing.

The $634 figure is a floor, not a typical invoice. NATP notes that firms may add fees above the minimum depending on the complexity of the form. See the at-a-glance table for published 2026 prices and planning ranges by entity type.

How much does a CPA charge a sole proprietor?

A sole proprietor reports business income on Schedule C, which is attached to the personal Form 1040. The cost is therefore generally an individual tax return fee plus any applicable business-related add-ons rather than a separate entity tax return. The self-employed pricing above applies.

Why does an LLC’s tax classification change the price?

An LLC is a legal structure under state law, not a specific federal tax return type. For federal tax purposes, a single-member LLC is generally treated by default as a disregarded entity and reports its activity on the owner’s tax return. A multi-member LLC is generally treated by default as a partnership, while either type can elect to be taxed as an S corporation or C corporation. The required tax return, and therefore the preparation fee, depends on the LLC’s tax classification. When a CPA quotes an “LLC return,” ask which tax form and services the quote covers.

How much does a CPA charge for a partnership return (Form 1065)?

Form 1065 is the partnership information return, and it generally produces a Schedule K-1 for each partner. Published 2026 prices are $1,200 at ProAxis and $1,350 at Charitax. The number of partners, allocation complexity, and state filings can push the fee well above the starting price.

How much does a CPA charge for an S corporation return (Form 1120-S)?

Form 1120-S is the S corporation return, and it generally produces a Schedule K-1 for each shareholder. Published 2026 prices are $1,200 at ProAxis and $1,350 at Charitax. Payroll coordination, shareholder basis tracking, and state compliance work are common reasons a quote exceeds the starting price.

How much does a CPA charge for a C corporation return (Form 1120)?

Form 1120 is the C corporation income tax return, and the corporation itself generally pays federal income tax. ProAxis lists prices starting at $1,500, which is higher than its $1,200 starting price for pass-through entity returns. We found no current, publicly available national survey benchmark specific to Form 1120.

What did NSA report for business returns?

The National Society of Accountants’ last publicly accessible detailed survey reported national averages for each form. Because those figures reflect 2020–2021 activity, they show how complexity has traditionally been priced and are not 2026 averages.

Source: NSA Income & Fees Survey. NSA also publishes a newer 2025 edition, but its detailed form-level figures are not publicly accessible.

Why CPA Tax Preparation Fees Vary So Much

CPA tax preparation fees vary because “tax preparation” is not a single service. Five layers of work can build on top of a base return, and each layer may be priced differently by each firm.

Three outside factors then shift the whole stack. Credential matters: NATP’s base-return averages are $280 for CPAs, $228 for enrolled agents and about $185 for non-credentialed preparers. Practice type matters: high-volume practices built around common 1040s tend to charge less per return. Timing matters: 80% of firms in Ignition’s 2025 survey planned 2026 fee increases, 37% of them about 5% and 30% about 10%, and NATP reported that most professionals raised fees 6–10%. Static 2025 prices should not be read as 2026 prices.

How Do CPAs Actually Calculate Tax Preparation Fees?

Most firms use a flat fee, a per-form fee, or a minimum plus extra time, and hourly billing is uncommon for routine returns. In Ignition’s 2025 survey, only 3% of firms charged hourly for tax preparation.

NATP and Ignition measured different populations, so the percentages are not directly comparable. The NATP shares come from Accounting Today’s report on the 2025 study.

What Makes a Tax Return More Expensive Than Average?

A tax return typically costs more than average when it adds forms, jurisdictions, entities, or record-keeping work to the base return. The ladder below describes complexity based on features rather than dollar amounts, so you can assess where your return falls before looking at any price.

Businesses with recurring transactions, payroll, inventory, vendor payments, receivables, loans, and month-end adjustments often need accounting and bookkeeping services before tax preparation can be completed accurately.

NATP notes that “simple returns” are less simple than they used to be, because Schedules A, C, D and newer credits are more common. A return that looked like a base 1040 a few years ago may now sit one rung higher.

Four things most often move a return up a level:

• A new income source. A side business or a rental adds a schedule and a records question.
• A new jurisdiction. Moving, remote work or an out-of-state property adds a return.
• A new entity. Forming an LLC taxed as a partnership or S corporation adds an entity return plus K-1s that feed your personal return.
• Disorganized records. The preparer reconciles and categorizes before preparing, and many firms scope that as separate work.

Real-World CPA Tax Preparation Cost Examples

These six fact patterns show why the same CPA can quote very different amounts. Each dollar figure is labeled as a survey benchmark, a published 2026 firm price, or a planning range.

1. W-2 employee, one state

One employer, the standard deduction, and no investments, rental properties, or business income. This is the type of return best represented by NATP’s $280 CPA base benchmark. Published 2026 starting prices are $300 from ProAxis and $395 from Charitax, including one state and one local return. Our planning range is $300–$500. The lesson: the base benchmark is most relevant when the return has no significant additional complexity.

2. Married couple with investments and itemized deductions

W-2 income, a brokerage account, and itemized deductions. ProAxis lists itemized returns with investments starting at $500, while Charitax custom-quotes stock and crypto sales. Our planning range is $400–$700+. The lesson: Schedule A, Schedule D, and transaction reporting can each add forms and complexity, and the number of trades can matter more than the account balance.

3. Self-employed consultant, one state

1099 income, Schedule C, and business expenses. ProAxis starts at $650, while Charitax’s $395 base fee plus $300 for Schedule C with expenses comes to $695. Both are published 2026 prices. Our planning range is $400–$800+. The lesson: the $280 base benchmark understates the cost of this type of return because business income and expenses must be categorized and supported.

4. Rental-property owner with three rentals

Three rental properties, depreciation, and Schedule E. At Charitax, $395 plus $300 plus $200 for each of two additional properties comes to $1,095 based on the published prices and our arithmetic. ProAxis starts at $700 for one to three properties. Our planning range is $600–$1,000+. The lesson: property count and record quality can drive the fee, and per-property pricing makes the total increase as the portfolio grows.

5. S corporation owner

An S corporation with payroll, a K-1 for the owner, and shareholder information. Published 2026 prices for the entity return alone are $1,200 from ProAxis and $1,350 from Charitax. The owner’s personal Form 1040 is priced separately. Our planning range for the entity return is $1,000–$2,500+. For reference, NSA’s 2020–2021 historical average was $903. The lesson: an entity return is separate from a personal Form 1040, and payroll, basis calculations, and other compliance requirements can increase the fee.

6. Multi-state business owner with more than one entity

Several jurisdictions, potentially several entities, each with its own return and K-1s. No published price or survey benchmark covers this specific pattern, so our planning range of $2,500–$5,000+ is a scoping signal only. Charitax’s $100 add-on for each additional state applies to individual returns and illustrates how costs can increase as more jurisdictions are involved. The lesson: states, entities, and scope can multiply the quote, which is why firms often scope these engagements on a case-by-case basis.

CPA Tax Preparation Cost Estimator

This worksheet scores how complex your return is and returns a planning category and range, not a quote. Score your personal Form 1040 once, then score each business return separately, and add the points in the first table.

Then match your total to a level and range.

The ranges are editorial planning ranges built from the evidence in this guide. They are not NATP, NSA or Ignition figures.

Worked example. A freelance consultant with Schedule C income (+2), one state (0) and mostly clean records (+1) scores 3, which is Moderate: $400–$800+. The published 2026 prices in the examples above ($650 and $695) fall inside that range. The same person’s S corporation return would be scored separately: +4 for the return type and 0 for the rest gives 4, which is High: $1,000–$2,500+.

Read your result in four parts:

• Complexity level: Low, Moderate, High or Highly complex.
• Planning range: a range, never a single price.
• Primary cost drivers: the two to four factors that added the most points.
• Potential add-ons: services from the additional fees section that may be billed separately.

This is an educational planning tool, not a standardized industry price or a CPA quote. Actual fees vary by firm, location, scope, and complexity.

Average Cost vs. What You Should Expect to Pay

An average shows the market’s midpoint for a defined service, while what you should expect to pay depends on your scope. Five terms get mixed up in cost articles, and this guide keeps them apart.

Read together, the $280 survey average is a reference point for a base return; published starting prices begin at $300–$395, and an actual quote depends on the layers described earlier.

Why IRS cost estimates are not CPA fees

The IRS estimates taxpayer burden, not what a CPA charges. Its cost figure includes out-of-pocket costs such as professional preparation, software, postage and other filing expenses, while monetized burden also values the taxpayer’s own time. The figures below are useful in context, and they should never be read as CPA pricing.

Sources: IRS instructions for Form 1040, Form 1065 and Form 1120 (2025). The entity categories contain several forms, so their averages are not specific to any one return.

What Additional Fees Should You Ask About?

Ask about every service outside the base tax return before you sign, because many firms price these items separately. Published prices from Charitax illustrate several of the items below, but your firm’s fee structure may differ.

• Additional state or local returns. Charitax includes one state and one local return in its base fee and charges $100 for each additional return.
• Bookkeeping cleanup. Tax preparation often assumes that records are already reconciled. Charitax’s QuickBooks cleanup is custom-quoted and starts at $750.
• Amended returns. Correcting a prior-year return is commonly treated as a separate engagement.
• Extensions. Filing a tax extension may be outside the base preparation fee.
• IRS or state notices and representation. Responding to IRS or state tax notices after filing is usually not included in the tax preparation fee.
• Tax planning and advisory services. Charitax lists CPA consulting at $250 per hour.
• Foreign reporting. International accounts, income, or entities usually require a separate scope of work and may involve additional fees.
• Rush work. Some firms charge additional fees for tight deadlines, particularly when they publish a rush-service policy.
• Small per-item add-ons. Charitax lists $100 for each dependent return and $50 for the Earned Income Credit.

How Do You Compare Two CPA Tax Preparation Quotes?

Compare scope before price: two quotes differ whenever one includes states, K-1s, planning or post-filing support, and the other does not. Put both quotes beside these nine questions.

Ask each firm to confirm its answers in writing, then compare the totals. A lower quote that excludes a state return and notice of support may cost more by the end of the year than a higher one that includes them.

CPA vs. Tax Software vs. Other Tax Preparers

Each option fits a different level of complexity and risk, and none is the best choice for everyone. NATP’s 2025 averages for the same base return (Form 1040 with Schedules 1–3) are $280 for CPAs, $228 for enrolled agents, and about $185 for non-credentialed preparers. Those are price averages and say nothing about quality.

The averages describe credential groups, not any single firm’s scope or quality. Match the option to your return’s complexity, your appetite for risk, and whether you want help after filing.

When Does Professional Tax Preparation Provide More Value?

Professional preparation becomes more relevant as complexity, uncertainty, planning needs or representation needs increase, and it is a question of fit rather than a universal verdict.

• Complexity. Several schedules, more than one state or an entity return are the situations the complexity ladder describes as High or above.
• Uncertainty. You are unsure how an LLC is classified, how a rental or investment sale is reported, or how a life event changes your return.
• Planning needs. You want to make decisions before year-end, which is a separate service from preparation.
• Representation needs. You want someone with unlimited IRS representation rights available if a notice arrives.

The case is weaker when your return is close to the NATP base return and your documents are organized. There, the price difference between options carries more weight, and an EA, a non-credentialed preparer or software may fit.

Tax Preparation vs. Tax Planning: They Are Not the Same Service

Preparation reports what already happened on a tax return, while planning looks ahead to manage future tax, so the two fees are not directly comparable.

Ignition’s 2025 benchmark found that tax planning and advisory most often exceeded $2,000 per year among surveyed firms, and that it was the main service where hourly billing remained common (NYSSCPA, summarizing Ignition). A low preparation quote that excludes planning is therefore not a cheaper version of a quote that includes it.

Does Location Affect CPA Tax Preparation Cost?

Yes, location affects fees, but no reliable public state-by-state CPA price table exists. NATP’s 2025 study reports that the average base Form 1040 with Schedules 1–3 was $185 in communities under 10,000 people and $233 in communities of 50,000 or more (Accounting Today, reporting NATP). Those figures cover all preparers, not CPAs only. NATP says its full study breaks down fees by state, but the detailed tables are available to members.

Four factors usually explain location differences:

• Local labor market. Staff costs and the supply of experienced preparers differ by area.
• Urban versus rural overhead. Office costs and competition differ, as the community-size averages above suggest.
• State return complexity. The number of state returns, and the rules behind each, change the work.
• Remote service. Some firms serve clients in several states, so a client’s address may matter less than the scope of the engagement.

Treat location as an adjustment to the quote and compare at least two local quotes against the same scope.

How to Choose a CPA for Tax Preparation

Choose a CPA based on verified credentials, experience with your type of tax return, a written scope of services, and clear communication. Treat price as one factor among these considerations. A practical checklist:

• Verify the license. Check the CPA’s status with your state board of accountancy or through NASBA’s CPAverify lookup. Paid tax preparers should also be able to provide you with a Preparer Tax Identification Number (PTIN).
• Match the specialization. Ask how often the firm prepares returns like yours, such as returns involving rental properties, S corporations, or multi-state filings. Experience with your specific tax situation matters more than a general reputation.
• Get the engagement scope in writing. Confirm which forms, states, K-1s, extensions, and notice support are included, using the nine questions in the quote-comparison table above.
• Understand the billing model. Ask whether the fee is fixed, charged per form, based on a minimum plus complexity, or billed hourly. Also ask what events or services trigger an additional charge.
• Ask who prepares and who reviews. Knowing who performs the work and who reviews or signs off on the return can help you understand how the firm controls quality.
• Agree on communication and timing. Ask when documents are due, how questions are handled, and how long the preparation process usually takes.
• Plan for after filing. Ask how amended returns, IRS or state tax notices, and year-round questions are handled and billed.

If you want planning as well as preparation, ask the firm to price it separately so you can see what each service costs.

Frequently Asked Questions

How much does a CPA charge to do taxes?

A CPA averages about $280 for a base Form 1040 with Schedules 1–3, per the NATP 2025 Fee Study. Published 2026 starting prices for simple individual returns are $300 to $395, and fees rise with added schedules, states or business activity.

Is $280 what every CPA charges for a tax return?

No. It is a survey average for one defined base return, and your return may include more than that definition.

How much does a CPA charge for a business tax return?

NATP reports a $634 average minimum fee for business forms, and published 2026 prices for partnership and S corporation returns are $1,200 to $1,350. The final fee depends on owners, states, payroll, records, and scope.

Do CPAs charge by the hour for tax returns?

Rarely for routine returns. Only 3% of firms in Ignition’s 2025 survey charged hourly for tax preparation, and NATP’s $182 average hourly rate applies to preparers who do bill hourly.

Is a state return included in a CPA’s tax preparation fee?

It depends on the firm. Charitax includes one state and one local return and charges $100 for each additional one, while other firms price states separately, so ask.

What is the price difference between a CPA and an enrolled agent?

NATP’s 2025 averages for the same base return are $280 for CPAs and $228 for enrolled agents. These are group averages, not a recommendation for either credential.

Does an LLC cost more to file than a sole proprietorship?

It depends on how the LLC is taxed. A single-member LLC taxed as a disregarded entity reports on the owner’s return, while an LLC taxed as a partnership, S corporation or C corporation files a separate entity return.

Is tax planning included in the preparation fee?

Not automatically. Tax preparation covers a completed tax year, while tax planning focuses on future decisions and strategies. Many firms price tax planning separately from tax preparation

Will CPA tax preparation fees keep rising?

Ignition’s 2025 survey found 80% of firms planned to raise fees in 2026, with 37% planning about 5% and 30% planning about 10%. That is a survey of 219 firms, so it shows direction and not every firm’s plan.