CPA fees guide
How Much Does a CPA Cost? Fees by Return, Hour and in NJ
In the National Society of Accountants' 2024 survey, preparing an itemized Form 1040 cost $300 to $600 on average, and a corporate return (Form 1120) $750 to $1,250. Its larger 2020–21 study put the average hourly rate for federal and state return work at $180, and an itemized 1040 with a state return at $305 in New Jersey. Those surveys mix CPAs, enrolled agents, and other preparers, so read them as market ranges, not any firm's quote.
Quick answer
How to estimate what a CPA will charge you
Most tax firms price by the return, not the hour. In NSA's 2024 survey, 37% of firms used fixed fees for tax preparation and 24% combined fixed and hourly fees. So your fee is set mainly by which forms your return needs, then by extras such as disorganized records or a rush job.
- List the forms your return needs. A return with W-2 income and the standard deduction costs least. Itemizing (Schedule A), a sole-proprietor business (Schedule C), a rental (Schedule E), or investment sales (Schedule D) each add work. NSA's 2020–21 study averaged $192 for a Schedule C and $145 for a Schedule E.
- Start from the survey fee for that return. $300 to $600 for an itemized 1040 and $750 to $1,250 for a Form 1120 in the 2024 survey. In 2020–21, a 1040 with the standard deduction and a state return averaged $220.
- Add the extras that apply to you. In 2024, 67% of firms charged for disorganized or incomplete files, at an average of $100 to $200. 39% charged to expedite a return and 38% to file an extension.
- Get a written quote and an engagement letter. Ask whether the fee is fixed, hourly, or monthly, what it includes, and what triggers an extra charge, before you hand over documents.
- Check the license before you pay. State boards of accountancy license CPAs. In New Jersey, the state's own record shows whether a CPA's license is active and whether the Board has taken action.
Before you pay a CPA, check the license and get the fee in writing.
A survey average cannot see your return. A CPA quotes from your actual forms, records, and deadlines. Ask for the fee basis and what is included before you share documents, and confirm in New Jersey's own record that the person holds an active license.
This guide explains published fee data; it is not tax advice or a price quote. Nothing on this page is a referral or an endorsement.
What a CPA costs for a tax return, by form
Two National Society of Accountants (NSA) surveys give the fee data below. The 2024 Income and Fees Survey had 183 participants; its public summary gives ranges for two returns only. The 2020–21 study had 1,009 usable responses and reports average fees for every common form, nationally and for the Middle Atlantic region (New Jersey, New York, and Pennsylvania). Its figures are 2020 fees.
Fees have risen since. NSA's own trend table shows the average itemized 1040 with a state return climbing from $205 in 2007 to $323 in 2020, and 61% of firms in the 2024 survey said they raise tax preparation fees every year. NSA's 2025 summary reports no fee figures; its full report is sold separately.
| Return | NSA 2024 survey | NSA 2020–21, national average | NSA 2020–21, Middle Atlantic average |
|---|---|---|---|
| Form 1040, standard deduction, with state return | Not in the 2024 summary | $220 | $242 |
| Form 1040, itemized (Schedule A), with state return | $300 to $600 | $323 | $303 |
| Schedule C (sole-proprietor business), priced separately | Not reported | $192 | $208 |
| Schedule E (rental property), priced separately | Not reported | $145 | $150 |
| Schedule D / Form 8949 (gains and losses), priced separately | Not reported | $118 | $105 |
| Form 1065 (partnership) | Not reported | $733 | $797 |
| Form 1120S (S corporation) | Not reported | $903 | $1,117 |
| Form 1120 (C corporation) | $750 to $1,250 | $913 | $1,111 |
| Form 1041 (trust or estate income) | Not reported | $576 | $469 |
| Form 990 (exempt organization) | Not reported | $735 | $944 |
| Form 706 (estate tax) | Not reported | $1,289 | $1,086 |
- NSA prices schedules separately from the base 1040, so a return with a business and a rental can carry three charges.
- The 2024 figures are ranges of averages, not a floor or a ceiling. A firm can charge below or above them.
- In the 2024 survey, 77% of firms did not offer Form 706 preparation at all, so estate returns can take more searching.
CPA hourly rates by service
When a firm bills by the hour, the rate depends on the work. These are NSA's 2020–21 average hourly fees, nationally and in the Middle Atlantic region. Tax return work averaged $180 an hour nationally and $156 in the Middle Atlantic. Planning, advisory, and IRS work averaged more there.
NSA's 2024 summary did not publish billing rates. The $60 median hourly figure it reports for principals is what firms pay, not what clients are charged, so it is not a CPA's rate.
| Service | National average per hour | Middle Atlantic average per hour |
|---|---|---|
| Federal and state tax return preparation | $179.71 | $155.79 |
| Tax services (planning and advice) | $174.29 | $164.34 |
| Estate and financial planning | $170.43 | $198.24 |
| Financial statement presentation | $163.85 | $186.69 |
| Audit of financial statements | $163.69 | $171.67 |
| Management advisory services | $157.89 | $163.33 |
| QuickBooks or bookkeeping advisory | $108.61 | $136.96 |
| Write-up work (bookkeeping) | $105.51 | $109.97 |
| Full payroll services | $99.66 | $112.22 |
| Offers in compromise with the IRS | $201.16 | $258.00 |
How much a CPA costs per month
Monthly fees usually cover recurring work: bookkeeping, payroll, and tax planning through the year. The fixed monthly averages below come from the same 2020–21 study. They are separate from the once-a-year return fee in the first table.
| Monthly service | National average per month | Middle Atlantic average per month |
|---|---|---|
| Write-up work (bookkeeping) | $391 | $323 |
| QuickBooks or bookkeeping advisory | $412 | $387 |
| Full payroll services | $211 | $193 |
| After-the-fact payroll | $127 | $188 |
| Tax services (planning and advice) | $502 | $422 |
Extra fees that raise the bill
Extras are where quotes drift. The table gives the share of firms that charge each extra and the average amount, from the 2024 survey where it reports one and from the 2020–21 study otherwise. Ask about each one before the engagement starts.
| Extra | Share of firms that charge it | Average fee when charged |
|---|---|---|
| Disorganized or incomplete files | 67% (2024); 78% (2020–21) | $100 to $200 (2024); $165.82 (2020–21) |
| Expedited (rush) return | 39% (2024); 32% (2020–21) | $136.32 (2020–21) |
| Filing an extension | 38% (2024); 41.6% (2020–21) | $55.94 (2020–21) |
| Tax information received after the firm's cutoff | 26.2% (2020–21) | $116.97 (2020–21); cutoff averaged 16 days before the deadline |
| IRS letter response for a return the firm did not prepare | 67.2% (2020–21) | $161.61 (2020–21) |
| In-person IRS audit representation | 84% (2020–21) | $167.63 an hour, $605 minimum fixed fee, or a $799 retainer (2020–21) |
| Preparing W-2s for a business | 75.6% (2020–21) | $69.75 (2020–21) |
| Preparing 1099s for a business | 85% (2020–21) | $67.72 (2020–21) |
- Retainers are common for IRS problems: in 2020–21, 67.5% of firms charged one for IRS audits (average $902) and 56% for offers in compromise (average $1,277).
- Prior-year work also draws a retainer at many firms: 55.5% for tax preparation for a non-current year (average $377) in 2020–21.
How much a CPA costs for a small business
A small business pays for its own return, the owner's personal return, and any monthly work. The examples add NSA's 2020–21 national averages; they are our arithmetic, in 2020 dollars, not an estimate for any business.
A sole proprietor or single-member LLC files a Schedule C with the owner's 1040: $323 for an itemized 1040 plus $192 for the Schedule C comes to $515 a year.
An S corporation files Form 1120S, and the owner still files a 1040: $903 plus $323 comes to $1,226 a year nationally. With Middle Atlantic averages it is $1,117 plus $303, or $1,420.
Add monthly bookkeeping and the year looks different: 12 months of write-up work at the national average of $391 is $4,692, before payroll.
| Business setup | What it adds up | Yearly total |
|---|---|---|
| Sole proprietor or single-member LLC, national | Itemized 1040 $323 + Schedule C $192 | $515 |
| S corporation and owner, national | Form 1120S $903 + itemized 1040 $323 | $1,226 |
| S corporation and owner, Middle Atlantic | Form 1120S $1,117 + itemized 1040 $303 | $1,420 |
| S corporation and owner, with monthly bookkeeping, national | $1,226 + 12 × $391 write-up work | $5,918 |
CPA fees in New Jersey
NSA's 2020–21 study also reports state averages. The New Jersey figures rest on a small number of responding firms (9 for the hourly tax return rate, 13 for tax services), so treat them as a rough guide and compare them with the Middle Atlantic column above.
New Jersey residents with low to moderate income, disabilities, or limited English, and residents 60 and older, can get both federal and New Jersey returns prepared for free through VITA and TCE sites, according to the NJ Division of Taxation.
| Return or service | New Jersey average |
|---|---|
| Form 1040, standard deduction, with state return | $235 |
| Form 1040, itemized, with state return | $305 |
| Schedule C (business) | $205 |
| Schedule E (rental) | $198 |
| Form 1065 (partnership) | $919 |
| Form 1120S (S corporation) | $1,359 |
| Form 1120 (C corporation) | $1,344 |
| Form 1041 (trust or estate income) | $563 |
| Form 706 (estate tax) | $2,138 |
| Hourly: federal and state tax return preparation (9 firms) | $152.22 |
| Hourly: tax services (13 firms) | $193.46 |
| Hourly: estate and financial planning (7 firms) | $207.14 |
New Jersey taxes estates differently from most states; the NJ inheritance tax guide covers the Form IT-R and its deadlines.
Owners of a New Jersey pass-through business can read how the elective entity tax works in the NJ BAIT tax guide.
CPA vs enrolled agent vs tax preparer: what the fee buys
Anyone with an IRS preparer tax identification number (PTIN) may prepare federal returns for pay. The difference the IRS points to is representation rights: who can speak for you in an audit, a collection matter, or an appeal.
The NSA fee figures above mix credentials. In the 2024 survey, 51% of respondents were enrolled agents, 34% CPAs, and 20% Annual Filing Season Program participants, and 13% were unlicensed. The public summaries do not split fees by credential, so they do not show how much more a CPA charges than an enrolled agent.
| Who | Licensed or recognized by | What it takes | Can represent you before the IRS |
|---|---|---|---|
| Certified public accountant (CPA) | State boards of accountancy | Uniform CPA Examination, accounting education, experience, ethics and continuing education | Unlimited: audits, payment and collection issues, appeals |
| Enrolled agent (EA) | The IRS | Suitability check, three-part Special Enrollment Examination, 72 hours of continuing education every 3 years | Unlimited |
| Attorney | State courts or the state bar | Law degree and bar exam | Unlimited |
| Annual Filing Season Program participant | Voluntary IRS program | Continuing education hours for a specific tax year | Limited: only returns they prepared and signed, and not appeals or collections |
| Preparer with a PTIN only | No credential | An active PTIN | None, except for returns they prepared and filed by December 31, 2015 |
- Every paid preparer must have a PTIN and enter it on the return filed with the IRS.
- The IRS keeps a public directory of preparers with credentials; New Jersey's own record confirms a CPA license.
Free and low-cost options before you hire
A simple return may not need a paid preparer at all. These are the IRS's current options, checked October 19, 2026.
- IRS Free File guided software: for adjusted gross income of $89,000 or less, through IRS partner companies reached from IRS.gov. Each partner sets its own rules, and some state filing is free.
- IRS Free File Fillable Forms: any income level, with no state filing.
- VITA: free basic return preparation by IRS-certified volunteers, generally for people who make about $70,244 or less, people with disabilities, and limited-English speakers. Each site may set its own limits.
- TCE: free help focused on taxpayers 60 and older, with pension and retirement questions. The NJ Division of Taxation describes it as an AARP Tax-Aide program.
Check before you pay: license, fee basis, and engagement letter
The cheapest fee can be the most expensive if the preparer disappears or files a bad return. The IRS's own checklist (Topic 254) and the questions below take a few minutes.
- Avoid preparers who base their fee on a percentage of your refund or offer to deposit your refund into their own account. The IRS says so in Topic 254.
- Use a preparer who signs the return, enters a PTIN, and gives you a copy. Never sign a blank return.
- Ask: Is the fee fixed, hourly, or monthly? Which forms and states does it include? What do you charge for late or disorganized records, an extension, or an IRS letter?
- Ask who will prepare and who will review the return, and whether that person will still be reachable if the IRS writes months later.
- Confirm the credential: a CPA's license in the state's record, an enrolled agent in the IRS directory.
Confirm a New Jersey CPA's license, status, and any Board action with the NJ CPA license lookup guide.
Bring the full list from questions to ask before hiring a professional to the first call.
Questions to ask before acting.
How much does a CPA cost to do taxes?
In the National Society of Accountants' 2024 survey, an itemized Form 1040 cost $300 to $600 on average. In its 2020–21 study, a 1040 with the standard deduction and a state return averaged $220 and an itemized one $323, with schedules such as a Schedule C ($192) priced on top.
How much do CPAs charge per hour?
NSA's 2020–21 study averaged $179.71 an hour for federal and state return work and $174.29 for tax planning and advice nationally. In the Middle Atlantic region (NJ, NY, PA) the averages were $155.79 and $164.34. Rates for IRS offers in compromise averaged $201.16 nationally.
How much does a CPA cost per month?
For recurring work, NSA's 2020–21 study averaged $391 a month for bookkeeping (write-up work), $211 for full payroll, and $502 for tax planning services nationally. Middle Atlantic averages were $323, $193, and $422.
How much does a CPA cost for a small business?
It depends on the entity. Using NSA's 2020–21 national averages, a sole proprietor's itemized 1040 plus Schedule C adds up to $515 a year, and an S corporation return plus the owner's 1040 to $1,226. Monthly bookkeeping at $391 adds $4,692 a year.
Is a CPA more expensive than an enrolled agent or tax preparer?
The published NSA summaries mix credentials and do not split fees by credential, so they do not measure a CPA premium. What differs is authority: CPAs, enrolled agents, and attorneys can represent you before the IRS in any matter, while other preparers have limited or no representation rights.
Do CPAs charge to file an extension?
Some do. In NSA's 2024 survey, 38% of firms charged to file an extension. In the 2020–21 study, 41.6% charged, and those that did averaged $55.94.
Can a tax preparer charge a percentage of my refund?
The IRS tells taxpayers to avoid preparers who base their fees on a percentage of the refund or who offer to deposit the refund into their own accounts (IRS Topic 254). Ask for a fixed or hourly fee in writing.
How much does a CPA cost in New Jersey?
NSA's 2020–21 state tables averaged $305 for an itemized 1040 with a state return in New Jersey, $235 with the standard deduction, and $1,359 for an S corporation return. They rest on a small number of New Jersey firms, so compare them with the Middle Atlantic averages.
Is there free tax help in New Jersey?
Yes. The NJ Division of Taxation says VITA sites prepare federal and New Jersey returns for free for low- to moderate-income residents, people with disabilities, and non-English speakers, and AARP Tax-Aide (TCE) serves people 60 and older. IRS Free File guided software covers adjusted gross income of $89,000 or less.
How do I check that a CPA is licensed in New Jersey?
Search the CPA's name in New Jersey's licensee record and confirm the license is active and whether the Board of Accountancy has taken action. The NJ CPA license lookup guide on this site walks through each step.
Original and attributed sources
Return to the record behind each claim.
A link shows where a fact came from; it does not turn every statement on that source into an independently verified claim.
- National Society of Accountants — 2024 Profit and Practice Report Summary (PDF)2024 Income and Fees Survey, 183 participants: itemized 1040 $300–$600, Form 1120 $750–$1,250, disorganized-file fee (67%, $100–$200), rush (39%) and extension (38%) fees, fixed-fee billing (37%), credential mix, 61% raise fees yearly. Read October 19, 2026.
- National Society of Accountants — 2020–2021 Income and Fees of Accountants and Tax Preparers in Public Practice (PDF)1,009 usable responses: national, Middle Atlantic, and New Jersey average fees by form, hourly and fixed monthly fees by service, additional fees, retainers, and the 2007–2020 fee trend. Read October 19, 2026.
- National Society of Accountants — Profit & Practice Report pageLinks to the 2025 key-insights summary (no fee figures published) and the 2020–21 study; the full 2025 report is sold. Read October 19, 2026.
- National Society of Accountants — 2025 Profit & Practice Report: Key Insights for Members (PDF)256 participants; fixed-fee and by-form billing dominate, write-offs about 2.5%. No fee amounts published in the summary. Read October 19, 2026.
- IRS — Understanding tax return preparer credentials and qualificationsUnlimited representation for CPAs, enrolled agents, and attorneys; limited rights for Annual Filing Season Program participants; none for PTIN-only preparers; enrolled agent exam and 72-hour continuing education. Page last reviewed January 29, 2026; read October 19, 2026.
- IRS — Topic no. 254, How to choose a tax return preparerAvoid percentage-of-refund fees, PTIN and signature on the return, never sign a blank form, check credentials. Read October 19, 2026.
- IRS — Choosing a tax professionalAnyone with a PTIN can be a paid preparer; the IRS directory of preparers with credentials. Page last reviewed August 21, 2026; read October 19, 2026.
- IRS — PTIN requirements for tax return preparersAnyone who prepares federal returns for compensation must have a valid PTIN. Page last reviewed October 15, 2026; read October 19, 2026.
- IRS — IRS Free File: Do your taxes for freeGuided software for AGI of $89,000 or less; Fillable Forms for any income, no state filing. Page last reviewed October 13, 2026; read October 19, 2026.
- IRS — Free tax return preparation for qualifying taxpayers (VITA and TCE)VITA generally for people who make about $70,244 or less, people with disabilities, and limited-English speakers; TCE for people 60 and older. Page last reviewed October 12, 2026; read October 19, 2026.
- NJ Division of Taxation — Free Tax Preparation Services for TaxpayersVITA and TCE (AARP Tax-Aide) volunteers prepare federal and New Jersey returns for free for qualifying residents. Last updated February 9, 2026; read October 19, 2026.
- Pexels — Person Filing Tax Documents, by Nataliya VaitkevichHero photo, used under the Pexels License (free to use and modify; attribution not required).
- Pexels — A Person Working on the Documents Using a Calculator, by Mikhail NilovHourly-rates photo, cropped to landscape, used under the Pexels License.
- Pexels — An Agent Handing a Pen to a Client, by Kampus ProductionEngagement-letter photo, used under the Pexels License.