Tax Manager Salary Guide
| Accounting.com Staff
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Tax managers work for corporations and other organizations where they handle tax reporting, ensure the company complies with tax laws, and assist with tasks related to public shares and company mergers. Tax accounting can be complicated, so these managers also make sure their companies take advantage of all possible deductions.
Tax management is an excellent profession for detail-oriented employees with superior math, analytical, and communication skills. The Bureau of Labor Statistics (BLS) projects that jobs for accountants will rise 6% from 2018-2028, which is as fast as average. Read on to learn more about tax management salaries and careers. LEARN MORE ABOUT A CAREER AS A TAX MANAGER
HOW MUCH DO TAX MANAGERS MAKE?
In 2018, accountants, including tax managers, made a median salary of $70,500, according to BLS data. Multiple factors can influence the salary of a tax manager, including location, degree, experience level, and organization size. Explore the sections below to learn more about tax manager salary variables.
SALARY BY EXPERIENCE
Experience is a major factor when it comes to tax management salaries. Tax managers may experience notable increases after one year, with significant gains as they proceed through their careers. The table below illustrates the average salary of a tax manager at different experience levels.
|Entry Level (0-12 Months)||$82,000|
|Early Career (1-4 Years)||$85,000|
|Mid Career (5-9 Years)||$95,000|
|Experienced (10-19 Years)||$101,000|
Salary by Degree
It's important to note that a degree doesn't guarantee a specific tax manager salary, and some accountants may earn similar titles and positions without holding degrees. However, graduating with a bachelor's or master's degree in tax accounting can significantly influence salary. The table below illustrates some of the salary possibilities for accounting degree holders.
Median Salary: $69,000
Median Salary: $91,000
CAREER PATH SALARIES
Tax managers can advance to more senior positions within their organizations, like senior tax manager, who oversees a staff of accountants, or tax director, who strategizes and troubleshoots tax plans. The table below illustrates some possible next steps for tax managers.
|POTENTIAL NEXT STEP||MEDIAN SALARY|
|Senior Tax Manager||$129,270|
|Certified Public Accountant||$65,032|
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What Are the Top States for Tax Manager Pay?
Accounting salaries, including tax management salaries, vary widely by location with cost of living and differences in professional demand. The table below shows five of the top-paying United States territories for accountants, including tax managers.
- DISTRICT OF COLUMBIA
Annual Mean Wage: $98,130
- NEW YORK
Annual Mean Wage: $96,300
- NEW JERSEY
Annual Mean Wage: $90,400
Annual Mean Wage: $85,640
Annual Mean Wage: $84,890
WHAT ARE THE TOP INDUSTRIES FOR TAX MANAGER PAY?
In addition to degree, location, and experience, the industry in which they work can influence a tax manager salary. The table below illustrates five of the top industries for tax managers.
|INDUSTRY||ANNUAL MEAN WAGE|
|School and Employee Bus Transportation||$109,250|
|Federal Executive Branch||$100,080|
|Securities, Commodity Contracts, and Other Financial Investments and Related Activities||$97,000|
|Other Investment Pools and Funds||$96,770|
|Other Pipeline Transportation||$93,590|
ARE TAX MANAGERS IN DEMAND?
Historical Career Growth
The job outlook for accountants and tax managers is positive. All United States territories project positive growth in job opportunities, although some locations, such as Alaska and Puerto Rico, expect increases below 1%. In the short term, Arizona and Utah lead the way, with projections over 6%.
Here are the states expecting a short-term rise of 4% or higher from 2018-2020:
- Arizona: 6.9% projected increase
- Colorado: 4.4% projected increase
- Florida: 4.3% projected increase
- Georgia: 5.6% projected increase
- Guam: 5% projected increase
- Nevada: 5.3% projected increase
- North Carolina: 5% projected increase
- Tennessee: 4.5% projected increase
- Texas: 4.4% projected increase
- Utah: 6.4% projected increase
- Washington: 4.2% projected increase
Future Career Growth
Demand for accountants is on the rise, with the BLS projecting 6% growth from 2018-2028. As the global economy leads to more complex tax systems, both large and small organizations need good accountants to help navigate tax law and take advantage of full deductions.
Top States for Job Growth
Location impacts job growth and salary possibilities in tax accounting jobs, including tax management. While the BLS projects increases for all United States territories, some will see more significant growth. The table below illustrates five of the top territories for projected long-term growth in accountancy jobs, including the top states for tax managers.
32.7% Change from 2016-2026
25.5% Change from 2016-2026
24.8% Change from 2016-2026
24.7% Change from 2016-2026
23.6% Change from 2016-2026
HOW DO TAX MANAGERS COMPARE TO OTHER ACCOUNTING CAREERS?
Demand for accountants and tax managers is projected to rise 6% from 2018-2028. Compare this to several other management and accounting-related careers:
- Demand for administrative services managers is projected to rise 7%.
- Demand for tax examiners and collectors is projected to decline 2%.
- Demand for computer and information systems managers is projected to rise 11%.
- Demand for managers in advertising and promotion is projected to rise 8%.
- Demand for compensation and benefits managers is projected to rise 3%.
- Demand for financial managers is projected to grow 16%.
TAKE THE FIRST STEP IN YOUR CAREER TODAY
LEARN MORE ABOUT TAX MANAGER SALARIES AND JOB GROWTH
- Bureau of Labor Statistics
The BLS collects and summarizes data on United States occupations, providing information on salary and job growth, occupation descriptions, educational requirements, and related careers.
PayScale provides detailed salary data for a variety of careers and degrees. Individuals can explore job descriptions, average salaries by experience, and information on benefits and possible career paths.
O*Net provides in-depth data on the skills employees need to perform their duties well, including technology expectations. O*Net also provides some growth outlooks by occupation.
- Projections Central
This searchable database is packed with data on numerous occupations. Site visitors can sort data by occupation and location to find short- and long-term projections for growth in particular fields.
- Center on Education and the Workforce
Georgetown University's Center on Education and the Workforce presents findings from a 2015 study in a searchable format, with salary data that individuals can access by profession.
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