So, you’re thinking about a career in tax preparation and you’re wondering what the best states are for owning a tax preparation business. You’re in the right place!
Today I won’t bog you down with complex tax-related subjects, instead, we’ll keep it light and informative. And hopefully, we’ll help you decide where you want to start and grow your tax preparation business.
Let’s get to it, shall we? Here are the top eight states in America for professional tax preparers to open shop.
…Before we dive in, now is a great time to register for my FREE + EXCLUSIVE online training, ‘Teach Me The Tax Game’ and learn everything you need to know to build wealth in the tax industry!
1: Rhode Island
First on the list is Rhode Island which also happens to be the smallest state in the country at just 37 miles wide and 48 miles long. Its nickname is ‘The Ocean State’, totally fitting since the state boasts more than 400 miles of pristine coastline.
Known for its amazing views and its downright delectable coffee milk, Rhode Island also happens to be a great state for owning a tax preparation business.
Here’s a look at the numbers:
- State Population: Approximately 1.1 million
- Average Salary of Tax Preparers: $76,825
- Highest 10% Earn: $139,000
- Lowest 10% Earn: $42,000
- Top Individual Income Tax Rate: 5.99%
- Top Corporate Income Tax Rate: 7.00%
- Location Quotient: 1.21 (Learn more about location quotients here)
2: Delaware
Next up, ‘The First State’, also known as Delaware, is a great place for owning a tax preparation business.
Here’s a look at the numbers:
- State Population: Approximately one million
- Average Salary of Tax Preparers: $72,606
- Highest 10% Earn: $132,000
- Lowest 10% Earn: $39,000
- Top Individual Income Tax Rate: A graduated rate from 0% to 6.6%
- Top Corporate Income Tax Rate: 8.7%
- Location Quotient: 1.14
3: Nevada
As it turns out, there’s more to Nevada than bright lights, casinos, and nightlife. ‘The Silver State’ is also a great place to live if you happen to work (or plan to work) in the tax preparation industry—or really any industry thanks to the absence of both business and personal income taxes.
Here’s a look at the numbers:
- State Population: Approximately 3.15 million
- Average Salary of Tax Preparers: $72,479
- Highest 10% Earn: $125,000
- Lowest 10% Earn: $41,000
- Top Individual Income Tax Rate: None
- Top Corporate Income Tax Rate: None
- Location Quotient: 1.12
4: Washington, D.C.
Sure, the traffic is terrible in D.C., and it’s the country’s political epicenter, but if you happen to be an accountant or tax preparation expert, it’s a move worth considering.
Here’s a look at the numbers:
- State Population: Approximately 712,816
- Average Salary of Tax Preparers: $68,890
- Highest 10% Earn: $124,000
- Lowest 10% Earn: $38,000
- Top Individual Income Tax Rate: A graduated rate from 4% to 10.75%
- Top Corporate Income Tax Rate: 8.25%
- Location Quotient: 1.68
5: Utah
If you’ve been eyeing a move out west that’s not totally coastal but is close enough to the ocean and action, Utah could be just the place for you to start your tax preparation company.
Here’s a look at the numbers:
- State Population: Approximately 3.4 million
- Average Salary of Tax Preparers: $67,559
- Highest 10% Earn: $112,000
- Lowest 10% Earn: $40,000
- Top Individual Income Tax Rate: 4.85%
- Top Corporate Income Tax Rate: 4.85%
- Location Quotient: 1.09
6: New Hampshire
Up next, ‘The Granite State’ makes the list of the most advantageous places to own a storefront or virtual tax preparation business.
Here’s a look at the numbers:
- State Population: Approximately 1.4 million
- Average Salary of Tax Preparers: $74,965
- Highest 10% Earn: $134,000
- Lowest 10% Earn: $41,000
- Top Individual Income Tax Rate: 4.00%
- Top Corporate Income Tax Rate: 7.50%
- Location Quotient: 0.83
7: New York
‘The Empire State’, you either love it or hate it, but if you’re a tax professional you’ll probably like it a little more, minus the often-outrageous cost of living.
Here’s a look at the numbers:
- State Population: Approximately 18.9 million
- Average Salary of Tax Preparers: $68,756
- Highest 10% Earn: $125,000
- Lowest 10% Earn: $37,000
- Top Individual Income Tax Rate: 4% to 10.9% (depending on income)
- Top Corporate Income Tax Rate: 6.5% to 7.25%
- Location Quotient: 1.1
8: Massachusetts
‘The Bay State’ is known for a lot of things, and now you can add tax industry jobs to that list.
Here’s a look at the numbers:
- State Population: Approximately 6.95 million
- Average Salary of Tax Preparers: $67,537
- Highest 10% Earn: $121,000
- Lowest 10% Earn: $37,000
- Top Individual Income Tax Rate: 5%
- Top Corporate Income Tax Rate: 8%
- Location Quotient: 1
Start Your Own Tax Preparation Business
If you already live or work in one of these above states, you’re in the best places in America for owning a tax preparation business—both physical and virtual operations.
If you don’t and you aren’t looking to move anytime soon, don’t sweat! Truthfully, you can live in any state and make a fantastic living preparing taxes, and I can show you how!
How does making $100,000 in 90 days sound?
Register TODAY for my FREE online training, ‘Teach Me The Tax Game’ and learn everything you need to build a successful career in this lucrative industry!
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