These are the most recent published average industry prices for tax preparation services in the state of New Jersey as of the date of this blog post. These are not my rates, although I do pay attention to this type of published data when calculating my own pricing.
Individual tax returns
Most individuals who do not itemize deductions and file in one state $237
With itemize expenses in one state $309
Individuals with a Schedule C for self-employment income $433
My own comments on service pricing are published on multiple pages on this web site. To summarize:
- Source: These rates are compiled and published by Canopy Tax Inc. The results appear to be fairly consistent with other past and current data. These are not my rates.
- Flat fee vs. hourly rate: Less than 15% of tax preparers responding to this survey use an hourly rate.
- CPA preparers: Tax return preparation fees for CPAs are generally higher than these published amounts for the industry overall that includes many non-credentialed tax preparers. The pricing of a sole practitioner CPA operating in South Jersey is likely to be among the lower scale of professionals but pricing is more likely to be based on experience and current work load.
- My pricing strategy: I try to price at or above the average for a number of strategic reasons, including avoiding “price shopper” clients. However, on the larger picture I try to incorporate pricing of tax preparation into an overall strategic management and financial planning that included tax planning and is priced based on performance and real value achieved. I’m working to improve on the natural human tendency of a sole practitioner without supervisory organizational structure to underprice services.
- Other states: The average rates for southeastern Pennsylvania are likely to be similar although the statewide average rates are lower. Delaware rates are significantly higher.
- Nonprofits: The source publication does not list fees for filing of returns for nonprofit organizations that is a significant part of my practice.