Lucrative.
I use this word to describe this tax field career. With no degree or experience requirements, the average Enrolled Agent can quickly earn a decent salary without having to spend a ton of time or money on the front end.
If you’re considering a career as an Enrolled Agent or want to move up in the EA ranks, understanding potential earnings is key to making an informed decision. Enrolled Agent salary ranges vary based on many factors, such as where you live, how much experience you have, and the industry you’re in.
But back to our initial question: how much does an EA make?
According to Glassdoor, while the average enrolled agent’s salary is a little shy of $124,000, some companies pay much more, and some pay much less.
Take a look at the numbers I’ve compiled below (all are based on the same link referenced above.)
Average Salary and Compensation for Enrolled Agents
As of February 2024, the average yearly pay for an Enrolled Agent in the United States is approximately $123,729, with a base salary averaging around $91,048. This figure represents the median, meaning it’s the middle point of salary ranges and is derived from a broad range of reported incomes.
EAs also receive additional compensation, which can include bonuses, commissions, tips, and profit sharing. The average additional pay is about $32,681 per year. This brings the total average compensation to a significant sum, highlighting the financial benefits of this profession.
EA Salary Range
The total pay range for an Enrolled Agent varies significantly, from $95,000 to $163,000 annually. This range gives you an idea of the lower and upper ends of what EAs can earn, with factors like location, experience, and the specific employer playing critical roles in determining where an individual’s salary falls within this spectrum.
Top Paying Companies for Enrolled Agents
Several companies are known for paying top dollar to Enrolled Agents. For instance:
- Intuit offers an average annual salary of $101,175.
- MorphoTrust USA comes in with a salary of $72,825.
- H&R Block, another major employer, provides an average yearly compensation of $69,257.
These figures illustrate that larger firms often provide higher compensation, possibly reflecting the complexity and volume of the work involved.
Salary by Hourly Rate
Some EAs are paid hourly, particularly when they work part-time or on a contract basis. Here’s a snapshot:
- Intuit pays its EAs between $36 and $66 per hour.
- MorphoTrust USA offers hourly rates ranging from $26 to $46.
- H&R Block‘s hourly rate varies from $25 to $45.
Salaries by Experience for Enrolled Agents
As Enrolled Agents gain more experience, their potential earnings can increase significantly. Here’s a closer look at the salary progression based on years of experience:
0-1 Years Experience
- Total Pay Range: $66K–$118K per year
- Base Pay: $50K–$89K per year
- Additional Pay: $16K–$30K per year
In their first year, Enrolled Agents can earn total compensation that reflects both a solid base salary and additional pay, including bonuses and profit sharing.
1-3 Years Experience
- Total Pay Range: $67K-$121K per year
- Base Pay: $52K–$92,000 per year
- Additional Pay: $16K–$29K per year
With a few years under their belt, Enrolled Agents see a rise in base and total pay, suggesting a rewarding career trajectory as they build their tax skills and knowledge.
4-6 Years Experience
- Total Pay Range: $71K–$129K per year
- Base Pay: $55K–$99K per year
- Additional Pay: $16K–$31K per year
Mid-career Enrolled Agents experience a further increase in earnings, showcasing the growing value of their expertise in tax advisory and IRS representation.
7-9 Years Experience
- Total Pay Range: $74K–$135K per year
- Base Pay: $56K–$103K per year
- Additional Pay: $17K–$32K per year
With nearly a decade of experience, Enrolled Agents reach higher salary brackets, emphasizing the long-term financial benefits of advancing in this specialized field.
Top Paying Industries for Enrolled Agents
Certain industries offer better opportunities for Enrolled Agents seeking high compensation. The Information Technology and Retail & Wholesale sectors in the United States stand out for their competitive pay scales.
Information Technology
- Median Total Pay: $87,000 per year
This salary is about 16% higher than the average across all industries. The Information Technology sector often demands a high level of expertise in compliance and data security, which could explain the higher wages. Enrolled Agents in this field are likely involved in complex tax situations related to digital products and services, which requires a deep understanding of both tech and tax law.
Retail & Wholesale
- Median Total Pay: $69,257 per year
This figure is approximately 6% lower than the overall industry average. Despite being slightly lower, salaries in the Retail & Wholesale sector are still substantial. This industry deals with vast amounts of inventory and complex sales tax issues, making the skills of an Enrolled Agent valuable for managing financial and tax-related matters.
These differences highlight how industry-specific demands and the complexity of tax-related challenges can influence the earning potential of Enrolled Agents across different sectors.
Enrolled Agent vs Tax Preparer Salaries
A side-by-side comparison of Enrolled Agents (EAs) and general tax preparers, according to Glassdoor, illustrates the distinct differences in compensation and scope of work:
Hourly and Annual Compensation
- EAs earn significantly higher base pay, ranging from $71K to $117 annually, and hourly rates between $36 and $66, depending on the employer and specific duties.
- General Tax Preparers: The average annual salary for general tax preparers is around $56,636, with hourly wages typically falling between $13 and $30.
Job Opportunities and Scope
- Enrolled Agents: They have a broader scope of practice, including the ability to represent clients in front of the IRS, handle complex tax situations, help with tax planning, and offer specialized tax advice. This opens up opportunities in various sectors, including corporate tax departments, law firms, and private practice.
- General Tax Preparers: Their role in tax practice is more limited to preparing simple tax returns and providing basic tax advice, which restricts their employment mainly to tax preparation services and retail tax firms. They can not represent taxpayers in front of the IRS and are often limited to entry-level positions.
Credentials and Professional Recognition
- Enrolled Agents: EAs are federally licensed and deeply understand the U.S. tax code, which is recognized across all 50 states. This credential is obtained after passing a comprehensive IRS exam that covers information on various tax matters.
- General Tax Preparers: Typically, they do not require federal licensing, though some states require registration. Although one can still be considered a tax expert without the EA credential, professional recognition is more limited compared to EAs.
This comparison underscores that becoming an Enrolled Agent not only potentially doubles the earning capacity compared to general tax preparers but also significantly expands the professional landscape, offering more varied and advanced career opportunities.
Final Thoughts
Pursuing a career as an Enrolled Agent is financially rewarding. With no initial requirement for a degree and a substantial starting salary, this role offers a strong return on investment in terms of time and educational expenses like EA prep courses.
Salaries for Enrolled Agents in the United States typically range from $95,000 to $163,000 annually, depending on experience, location, and the employing company, with an average salary of around $124,000. Top-paying companies like Intuit and H&R Block reflect the demanding nature of the work and the expertise required.
As Enrolled Agents gain experience, increased pay is a natural consequence, especially in sectors like Information Technology, where specialized tax knowledge can lead to higher pay. Overall, becoming an Enrolled Agent offers lucrative salaries and opportunities for growth, making it a compelling career path for those interested in taxation and finance.
FAQs
$123,729 per year. This estimate is based on salaries submitted anonymously to Glassdoor.
The highest reported salary for an Enrolled Agent in the United States is $162,707 per year.
The starting salary for an Enrolled Agent can be as low as $95,392 per year, depending on various factors such as location and the hiring company.
The average Enrolled Agent’s salary increases as one gains experience. Entry-level agents can expect to start near the lower end of the pay scale, with potential increases as they gain expertise and move into roles with more responsibility.
Information Technology and Retail & Wholesale are among the top-paying industries for Enrolled Agents. IT offers a median total pay significantly above the average, while Retail & Wholesale pays slightly below the average.
