How Much Does A Tax Lawyer Make | Updated Report In 2022
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The average salary for a tax lawyer depends on several factors, including the firm’s location, the law firm’s size, and individual practices. There’s no hard-and-fast rule as to what an entry-level tax lawyer makes. However, with that being said, it is not uncommon for new lawyers to start at anywhere between $60k and $100k annually. Depending on experience and specialization, some tax lawyers can make up to $150k annually. Tax lawyers typically make more money as they advance their careers. That said, many factors influence salary:
- The geographic location of the firm
- Size of the law firm
- Practitioner’s expertise in sectorial taxation or corporate tax
Let’s look at how much a Tax Lawyer can earn in different practice areas based on their starting salary and other factors that influence one’s salary.
As of Aug 3, 2018, the average annual pay for a TAX LAWYER in the United States is $99,776. This is the equivalent of $47.97 an hour or $1,919 a week, or $8,315 a month. The majority of TAX LAWYER salaries range from $70,000 to $121,500, with top earners making $150,000.
What is a Tax Lawyer?
A tax lawyer focuses on the legal aspects of preparing and filing a person’s taxes. This includes everything from understanding the difference between an individual and a corporation to determining the best way to file taxes. Although many tax preparers are licensed, most tax lawyers are not. Because of this, tax lawyers are rarely the ones who are filing taxes.
However, they are vital to the process, especially for the more complicated tax situations. Tax lawyers are not the same as tax accountants, even though they often help tax preparers earn their licenses. A tax accountant is a person who specializes in preparing taxes, while a tax lawyer focuses on the legal aspects of taxes.
Thus, tax accountants are also likely to have some legal training, whereas tax lawyers are almost always required to have a Juris Doctor (J.D.) or Law degree.
Types of Tax Lawyers
Tax lawyers can be divided into two main groups: solo and firm. Solo tax practitioners are self-employed and do public-interest law. They may take on cases pro bono (Latin for “for the good”) regardless of their fees or make a profit on their work. Firm tax lawyers work for law firms and may be employees or partners in the firm.
Solo tax lawyers are considered the more prestigious group of tax lawyers who work on clients’ behalf. However, many firms employ tax lawyers because it can be more cost-efficient than hiring a solo tax practitioner.
Factors That Affect Your Earnings as a Tax Professional
- The size of your practice: Your practice determines how much time you spend with each client and how much you take home per hour.
- The complexity of your client’s tax situations: The more complicated your clients’ tax situations are, the more time it will take you to complete their taxes.
- Your knowledge of IRS regulations: The more time you spend studying the IRS’s official published rules, the more likely you are to qualify for higher-paying IRS audit and investigation positions.
- Your knowledge of tax law and policies: The more time you spend studying this area of law, the more likely you are to qualify for higher-paying positions in government and law firms or private practice as an attorney in-house.
- Your location of practice: The more time you spend in high-income areas of the country, the more likely you are to earn more as a tax professional.
How much does a Tax lawyer earn?
The starting salary for tax lawyers is quite a bit lower than the average income for other professionals. The median wage for tax lawyers is $112,000 annually as of May 2017. This is also relatively lower income than many other professions, including financial advisors, forex traders and auditors.
The most successful tax lawyers can make much more than this, however. The top 10% of tax lawyers in the United States are expected to earn an average of $266,000 per year, while the bottom 10% are expected to earn just $69,800 per year.
The average salary for tax attorneys is between $104,000 and $134,000. Wages will be higher in some areas of the country than in others. In some cities, salaries can easily exceed six figures.
The average salary for tax attorneys is between $7,500 and $8,500. This will vary depending on your location, the size of your practice, and the other factors discussed above.
According to the National Association of Tax Professionals, the median salary for tax accountants was $71,000 in 2016, and the top 10% earned $109,000 on average. Considering that the median salary for tax attorneys is $120,000, the earning potential is even higher.
Location of practice
Some attorneys specialize in specific areas of the law and may spend a lot of time in particular locations. If your practice location is one of these specialized areas, you may earn significantly more than average. For example, if your practice location is tax law and you spend a lot of time working in government or private practice as an attorney in-house, you may earn significantly more than average.
Many large law firms have special programs that give attorneys more opportunities to advance in their firms. If you work in one of these types of firms, you may be able to take advantage of these programs to advance your career.
Additional information. The Bureau of Labor Statistics reports that tax attorneys had an average salary of $104,000 as of May 2017.
Qualifications for becoming a tax lawyer
To be admitted to law school, you will almost certainly need to have a high GPA. While grades are not the only factor determining admittance to law school, they are undoubtedly significant.
Thus, it will be vital for you to get good grades to be admitted to law school. Great LSAT score if you plan on attending law school, it will be necessary for you to take the Law School Admission Test (LSAT).
The LSAT is a standardized exam administered to all applicants to law school and is used by law schools to choose whom to admit. While many factors determine your LSAT score, your GPA is almost certainly one of them.
Salaries of Tax Lawyers (Statistics)
- The expected salary for tax lawyers is $112,000 per year as of May 2017. However, this figure can vary significantly depending on a lawyer’s geographic location, experience and practice area.
- Salaries for corporate lawyers are usually higher than those for other lawyers. Expect to earn around $200,000 per year as a corporate lawyer, while you may only receive an average of $132,000 per year as an individual tax attorney.
- Tax lawyers working for government agencies or in-house private corporations usually earn between $110,000 and $150,000 per year. The most significant salary jumps are generally seen in tax law, while the lack of salary jumps in tax law is compensated by the high salary potential in other fields.
Qualities of Successful Tax Lawyers
Most lawyers must be able to communicate well with their clients. This includes explaining the process to them and preparing them for the audit that virtually all taxes are subject to.
Tax lawyers must be able to research both the law and their clients to prepare the taxes. This includes analyzing the client’s finances and the potential consequences of any possible changes.
Successful tax lawyers must be willing to work on individual and small client budgets. This requires both dedication to the work and a willingness to accept lower salaries.
The tax code is a highly complex area of law. You must hire a tax lawyer or preparer who can help you navigate the system and understand what you need to do to be in the best position to pay taxes.
The average salary for a tax law firm ranges from $160,000 – $200,000, and full-time salaried employees make an average of $160,000 per year.
It is important to note that there are several different types of tax professionals, including tax preparers, tax auditors, tax accountants and attorneys. The type of tax you need help with depends on several factors, including how complicated your situation is and where you live.
I’m a driven and accomplished law graduate and post-graduate, passionate about sharing my legal expertise via my blog. I hold a Bachelor’s degree in Law from the University of London (UK) and a Master’s in Law from the University of Derby (UK). Both gave me the foundational knowledge and skills to excel in my chosen career path.
Throughout my academic journey, I have gained extensive knowledge in various fields of Law, including Corporate and Business Law in the USA, Criminal Law, International Law, US Copyright law, and most importantly, American Constitutional law.