Finance · State Rankings

Best US States for Tax Preparers

All 50 states + DC ranked by Tax Preparer salary. State tax structure noted for take-home math.

Top 10 states by salary
#StateEstimated salaryCost mult.State tax
1District of Columbia$66,0001.20×~5% effective
2California$64,9001.18×~5% effective
3Hawaii$63,2001.15×~5% effective
4New York$63,2001.15×~5% effective
5Alaska$62,1001.13×No state tax
6New Jersey$62,1001.13×~5% effective
7Massachusetts$61,6001.12×~5% effective
8Connecticut$60,5001.10×~5% effective
9Washington$60,5001.10×No state tax
10Maryland$59,4001.08×~5% effective
All 51 states + DC, ranked
#StateSalaryAfter state tax (rough)
1District of Columbia$66,000$48,411
2California$64,900$47,604
3Hawaii$63,200$46,357
4New York$63,200$46,357
5Alaska$62,100$48,655
6New Jersey$62,100$45,550
7Massachusetts$61,600$45,184
8Connecticut$60,500$44,377
9Washington$60,500$47,402
10Maryland$59,400$43,570
11Colorado$57,800$42,396
12New Hampshire$57,800$45,286
13Oregon$57,800$42,396
14Rhode Island$56,700$41,589
15Virginia$56,700$41,589
16Nevada$56,100$43,954
17Arizona$55,000$40,343
18Delaware$55,000$40,343
19Florida$55,000$43,093
20Illinois$55,000$40,343
21Minnesota$55,000$40,343
22Vermont$54,500$39,976
23Maine$53,400$39,169
24Pennsylvania$53,400$39,169
25Texas$53,400$41,839
26Utah$53,400$39,169
27Georgia$51,700$37,922
28North Carolina$51,700$37,922
29Idaho$51,200$37,555
30Michigan$51,200$37,555
31Montana$51,200$37,555
32Wisconsin$51,200$37,555
33Wyoming$51,200$40,115
34New Mexico$50,600$37,115
35North Dakota$50,600$37,115
36South Carolina$50,600$37,115
37Tennessee$50,600$39,645
38Indiana$50,100$36,748
39Kansas$50,100$36,748
40Nebraska$50,100$36,748
41Ohio$50,100$36,748
42South Dakota$50,100$39,253
43Iowa$49,500$36,308
44Louisiana$49,500$36,308
45Missouri$49,500$36,308
46Alabama$48,400$35,501
47Kentucky$48,400$35,501
48Oklahoma$48,400$35,501
49Arkansas$47,300$34,695
50West Virginia$47,300$34,695
51Mississippi$46,200$33,888
After-state-tax estimate uses federal ~14% + FICA 7.65% + state ~5% (or 0% in no-tax states).

Salary range across states

For Tax Preparers, the estimated median salary ranges from $46,200 in Mississippi to $66,000 in District of Columbia — a 43% range. State-by-state variation reflects local cost of living, employer density, and labor market dynamics.

No-state-tax states

Nine US states have no state income tax: Alaska, Washington, New Hampshire, Nevada, Florida, Texas, Wyoming, Tennessee, South Dakota. For high earners, this can mean $5,000-15,000+ extra per year in take-home pay vs neighboring states with similar gross salaries. New Hampshire taxes interest/dividends only (phasing out).

But: many no-state-tax states make up revenue with higher property tax (Texas) or sales tax (Tennessee). And cost of living varies — Texas urban metros (Austin, Houston) have grown expensive while Florida coastal areas command premium real estate prices.

Cost of living matters more than nominal salary

California pays the most for Tax Preparers on a nominal basis — but housing in coastal California (SF, LA, San Diego) eats 35-50% of net income for median earners. A Tax Preparer earning $64,900 in California often has less spendable income than one earning $53,400 in Texas.

Use our cost-of-living comparison tool to see specific city pairs. For state-level take-home, use our state-specific Paycheck Calculator.

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Frequently Asked Questions

Which state pays the most for Tax Preparers?
Based on cost-of-living-adjusted estimates, District of Columbia pays the most with an estimated median of $66,000/year for Tax Preparers. High-cost states (CA, NY, MA, HI) tend to top the list because employers compensate for local cost of living.
Do no-state-tax states pay better effective?
Often yes after taxes. Alaska, Washington, New Hampshire, Nevada, Florida have no state income tax. A 5% state tax savings on $100K = $5,000 more take-home. But verify cost of living too — Texas pays well and has no tax, but Houston/Austin housing has risen dramatically.
Why do some states pay so much more?
Three factors: (1) cost of living — coastal states cost 15-25% more, employers adjust pay; (2) employer concentration — CA dominates tech, NY finance, MA biotech; (3) regulatory environment — some states have higher unionization or licensing requirements that increase wages.
Are these salaries net or gross?
Gross — before federal income tax (~14% effective at this income), FICA (7.65%), state income tax (varies), and local taxes if applicable. Use our state-specific Paycheck Calculator for exact take-home in any state.
How does experience affect these numbers?
These are medians — entry-level often runs 25-35% below median, senior roles 40-60%+ above. A senior Tax Preparer in District of Columbia can easily exceed $99,000, while an entry-level role in a low-cost state might be $32,340.