Tax Attorney Salary: Understanding the Earnings of a Tax Lawyer
Are you considering a career in tax law, and wondering about the salary expectations? Or are you an employer looking to hire a tax attorney and want to ensure you offer a competitive compensation package? Either way, understanding the tax attorney salary range is essential. In this article, we’ll discuss the various factors that influence a tax attorney’s earnings, what you can expect to earn as a tax lawyer, and the job outlook in the field.
Introduction
Tax law is a complex and ever-evolving field, and tax attorneys play a critical role in helping individuals and businesses navigate tax regulations and laws. A tax attorney’s work involves providing legal guidance, preparing legal documents, representing clients in disputes with tax authorities, and helping clients understand their tax obligations.
Like any other profession, the salary of a tax attorney varies based on several factors. Some of these factors include level of experience, geographic location, firm size, and area of specialization. In the following sections, we’ll take a closer look at each of these factors and their impact on a tax attorney’s earnings.
Factors Influencing Tax Attorney Salary
Level of Experience
As with most professions, a tax attorney’s salary is heavily influenced by their level of experience. Generally, tax attorneys with more experience can expect to earn higher salaries than those who are just starting in the field.
According to data from Payscale, the average salary for a tax attorney with less than one year of experience is around $66,000 per year. With 1-4 years of experience, the salary rises to an average of $89,000 per year. Those with 5-9 years of experience can expect to earn an average salary of $118,000 per year, and those with 10-19 years of experience can earn an average of $151,000 per year. Finally, tax attorneys with 20 or more years of experience can earn an average of $174,000 per year.
Geographic Location
The geographic location where a tax attorney works can also have a significant impact on their salary. In general, areas with higher costs of living and higher demand for tax attorneys tend to offer higher salaries. For example, a tax attorney working in New York City can expect to earn a higher salary than one working in a smaller city or rural area.
According to data from the Bureau of Labor Statistics, the top-paying states for lawyers (which includes tax attorneys) as of May 2020 were:
- California – Mean annual wage of $184,820
- New York – Mean annual wage of $182,730
- Massachusetts – Mean annual wage of $168,460
- District of Columbia – Mean annual wage of $167,090
- Connecticut – Mean annual wage of $153,640
Firm Size
The size of the firm where a tax attorney works can also impact their salary. In general, larger law firms tend to offer higher salaries than smaller firms. This is because larger firms tend to work on more complex and high-profile cases, which can lead to higher fees and revenues.
According to data from Payscale, the average salary for a tax attorney working at a small law firm (1-10 employees) is around $80,000 per year. In comparison, tax attorneys working at mid-sized firms (50-200 employees) can expect to earn an average of $135,000 per year, and those working at large firms (over 200 employees) can earn an average of $186,000 per year.
Area of Specialization
The area of specialization in tax law can also impact a tax attorney’s salary. Some areas of tax law, such as international taxation or corporate tax law, tend Area of Specialization Some areas of tax law, such as international taxation or corporate tax law, tend to be more complex and require a higher level of expertise. Tax attorneys who specialize in these areas can command higher salaries than those who work in more general areas of tax law.
According to data from Payscale, tax attorneys who specialize in international tax law can earn an average salary of $146,000 per year, while those who specialize in corporate tax law can earn an average salary of $140,000 per year. In comparison, tax attorneys who work in general tax law can expect to earn an average of $106,000 per year.
Tax Attorney Salary: A Closer Look
Now that we’ve discussed the various factors that influence a tax attorney’s salary, let’s take a closer look at the salary range you can expect as a tax lawyer.
According to data from the Bureau of Labor Statistics, the median annual wage for lawyers (which includes tax attorneys) as of May 2020 was $126,930. The lowest 10 percent of lawyers earned less than $61,490 per year, while the highest 10 percent earned more than $208,000 per year.
However, it’s important to note that these figures can vary significantly based on the factors we discussed earlier. For example, a tax attorney working at a large law firm in New York City can expect to earn significantly more than the median annual wage reported by the Bureau of Labor Statistics.
FAQ
1. What is the average starting salary for a tax attorney?
The average starting salary for a tax attorney with less than one year of experience is around $66,000 per year, according to data from Payscale.
2. How much do tax attorneys with 10+ years of experience earn?
Tax attorneys with 10-19 years of experience can expect to earn an average salary of $151,000 per year, while those with 20 or more years of experience can earn an average of $174,000 per year.
3. What is the top-paying state for tax attorneys?
California is the top-paying state for lawyers (which includes tax attorneys) as of May 2020, with a mean annual wage of $184,820.
4. Do tax attorneys working at larger law firms earn more than those at smaller firms?
Yes, tax attorneys working at larger law firms tend to earn higher salaries than those at smaller firms, according to data from Payscale.
5. What is the average salary for tax attorneys who specialize in international tax law?
Tax attorneys who specialize in international tax law can earn an average salary of $146,000 per year, according to data from Payscale.
6. What is the job outlook for tax attorneys?
According to the Bureau of Labor Statistics, employment of lawyers (which includes tax attorneys) is projected to grow 4 percent from 2019 to 2029, about as fast as the average for all occupations.
Conclusion
In summary, the tax attorney salary range varies based on several factors, including level of experience, geographic location, firm size, and area of specialization. However, tax attorneys can generally expect to earn a competitive salary, with the median annual wage for lawyers (including tax attorneys) reported as $126,930 as of May 2020. As the job outlook for lawyers is projected to grow at an average rate, pursuing a career in tax law can offer a stable and rewarding career path.
