How to Become a Tax Advisor: Career Development, Requirements and Timeline

If you’re considering a career change or a new role in the financial services industry, you might be interested in how to become a tax advisor. Tax advisors help clients reduce their tax liability while adhering to federal and state tax rules. Moving into tax advisory services is an opportunity to refine your niche and potentially attract more high-net-worth clients who are seeking tax advice. Acquiring the education, experience and certifications you need to be a tax advisor can take up to 10 years, but it could be time well spent if you’re able to elevate your career.

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What Is a Tax Advisor?

Tax advisors are professionals who advise clients on compliant practices and strategies to reduce tax liability while aligning with broader financial planning goals. Examples of the types of services tax advisors may provide include:

• Personal and corporate tax planning
• Scenario modeling to help clients understand potential outcomes
• Tax-efficient estate planning, in coordination with estate planning attorneys
• Development of tax-efficient charitable giving strategies, such as the use of donor-advised funds (DAFs)
• Business succession planning

The Bureau of Labor Statistics (BLS) categorizes tax advisors alongside accountants and auditors, but they perform different functions. Accountants primarily focus on tax reporting and recordkeeping and aim to ensure that client returns are prepared accurately while minimizing audit risk.

Tax advisors employ a more holistic approach, focusing on optimizing client tax profiles within the context of their complete financial picture. Wealthy individuals and businesses may look to tax advisors for help that goes beyond return preparation. Tax advisors may work for accounting firms, wealth management firms and private banks. Some choose to operate independently.

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Tax Advisor Average Salary

Accountants and auditors earned a median salary of $81,680 in 2024, according to the BLS Occupational Outlook Handbook. ¹ Personal financial advisors, by comparison, earned a median annual salary of $102,140. ² Financial managers, meanwhile, earned a median annual salary of $161,700 in 2024. ³

Tax advisor salaries can be influenced by a range of factors, including:

• Client base/niche
• Geographic location
• Education level
• Experience
• Professional certifications/designations

Fee structure can also influence earnings. While financial advisors and managers may use an assets under management (AUM) fee model, tax advisors may charge flat fees or hourly fees instead. Some get paid via monthly or annual retainers, while others might use a sliding scale. The complexity of the services you offer often determines which pricing approach you use.

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Tax Advisor Certification: Education, Experience and Skill Requirements

A typical educational background for a tax advisor includes a bachelor’s degree, at a minimum. Fields of study that could prepare you for a career as a tax advisor include business, accounting, economics and mathematics or statistics. Some tax advisors may hold a master’s degree in one of these subjects or a related field, such as taxation or business administration.

Tax advisors may gain experience through internships or entry-level roles in accounting firms, volunteering with organizations that offer low-cost or free tax preparation services, or working with a professional mentor. Some tax advisors work as financial advisors first before pivoting into tax services.

The skills tax advisors need to succeed are similar to those required for any other role in financial services. They include a mix of soft skills, such as communication and active listening skills, as well as technical skills. Tax advisors are expected to be knowledgeable when it comes to professional tax planning software, for example.

Becoming a tax advisor also requires thorough knowledge of federal and state tax codes, as well as a commitment to staying up to date on the latest tax changes. They must be familiar with financial analysis and reporting, and be skilled at managing their time efficiently.

Tax Advisor Certification and Job Expectations

Earning professional credentials can enhance your knowledge and add to your credibility, which could help you attract more tax advisory clients. Some certifications and designations you may pursue include:

• Enrolled agent (EA): Enrolled agent status grants tax advisors the authority to represent their clients before the IRS. To become an enrolled agent, you must pass a three-part comprehensive exam; former IRS agents can substitute their work experience.
• Certified public accountant (CPA): Certified public accountants are licensed accounting professionals who have passed the CPA exam and met education and experience requirements set by their state’s licensing board. CPAs can prepare tax returns, conduct internal audits of client accounts, and offer tax planning advice.
• Tax planning certified professional (TPCP): The tax planning certified professional credential is granted by the American College of Financial Services. This certification is offered 100% online and doesn’t require a bachelor’s degree, though you will need at least three years of experience working in financial planning.
• Certified tax specialist (CTS): The CTS designation is offered by the Institute of Business and Finance and is designed for professionals who want to advise clients on tax return filing, deductions and credits, and changing tax regulations.
• Accredited tax advisor (ATA): The accredited tax advisor credential is a nationally recognized standard for professionals who handle more complex tax planning. Candidates must complete the ATA exam and have at least three years of experience working in tax preparation, compliance, tax planning, and consulting.

Keep in mind that once you earn a professional credential, you may be required to meet continuing education standards. CPAs, for example, are generally expected to complete a minimum number of CE hours each year, including hours in ethics. Your state’s CPA licensing board can provide more details on what’s required to obtain and maintain your certification.

Tax Advisor Client Opportunities and Services

Tax advisors can work with a variety of clients, which may include:

• High-net-worth individuals
• Family offices
• Small business owners and entrepreneurs
• Corporate entities, including C-corps, S-corps and LLCs
• Trusts and estates
• Private foundations or endowments

The types of services you offer as a tax advisor are shaped by the clients you serve. For example, if you primarily work with small business owners, then you may be asked for advice on the tax implications of acquiring new assets or completing a merger. If you mainly work with wealthy families, their concerns may center on tax-efficient strategies for alternative investments or building a long-term legacy.

Tax Advisor Job Outlook

According to the BLS, employment for accountants and auditors is expected to grow by 5% through 2034. Approximately 124,000 new jobs are expected each year. The growth rate for all jobs is expected to be 3% over the same period, while financial advisors are projected to see 10% growth.

Some of the factors driving demand for tax advisors include:

• Globalization
• Economic changes
• Evolving tax and regulatory environments
• Technological innovations

The BLS emphasizes that the overall health of the economy may be the biggest determinant, as a healthy economy may prompt more individuals and businesses to seek out tax advisory services.

Transferable Skills and Experience

The skills you develop as a tax advisor and the experience you gain can be leveraged to explore other career paths.

For example, you might use what you’ve learned from serving individual clients to make a move into corporate finance and assume a chief financial officer (CFO) role. Or you may gravitate toward asset management or treasury management services, become a business consultant, or specialize in forensic accounting.

Some tax advisors use the knowledge gained from working with tax planning and financial planning software to develop their own programs or applications. Others may choose to work for the IRS or transition into investment advisory services. The advantage of working as a tax advisor is that it can prepare you for a wide range of roles within the finance sector.

Related Jobs/Certifications

Tax advisors may start their careers as financial planners or move into financial planning later. In either scenario, you may benefit from earning a CFP mark. CFP® professionals offer holistic financial planning advice to clients. A Certified Financial Planner™ (CFP®) certification is not required to work as a tax advisor or a financial advisor; however, prospective clients may be more inclined to consider your services if you have this designation.

Nearly 3 in 4 (73%) of clients have strong trust in their CFP® professional, according to the CFP Board. ⁴ Trust supports relationship-building and client retention and can also play a direct role in firm growth. The more clients trust you, the more likely they may be to refer friends and family to you.

Becoming a CFP means meeting minimum education and experience requirements. You’ll also need to pass the CFP® exam. Investing in CFP exam prep can help improve your odds of passing on the first try. Once you pass, you’ll need to commit to following the CFP Board’s ethics code to maintain your certification.

Bottom Line

Researching how to become a tax advisor involves more than reviewing salary projections or job growth estimates. It also requires a consideration of what you’re passionate about as an advisor, and who you most want to help. Understanding the type of experience you may need, and what certifications might be most useful, can help you decide what the next steps of your career journey should look like.

Tips for Growing Your Advisory Business

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• If you hold a professional designation that requires continuing education, you may be interested in free or low-cost CE courses. Several organizations offer live and on-demand workshops, seminars, and lectures that can be counted toward your CE credit requirements. While some options require a fee, others allow you to earn credits at no cost.

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