Tax Preparation Services Market Size, Share, and Industry Analysis, By Services (Tax Compilation Services, Tax Return Services, Tax Planning and Advisory Services, and Others), By End User (Enterprise, Individual, and Others), By Service Providers (Certified Public Accountants (CPAs), Tax Preparation Firms, Independent Tax Preparers, Financial & Wealth Management Firms, and Others), and Regional Forecast, 2025- 2032

The global tax preparation services market is witnessing significant growth due to increasing small and medium-sized enterprises (SMEs), tax complexities, global income levels, and the need for financial transparency. The market is growing due to the globalization of economics and technological advancements such as Cloud computing, AI, and blockchain technology, increasing demand for automation, and cross-border taxation, which results in a rise in the demand for tax preparation services, fueling the market growth.

• For instance, according to the Bank of England, the usage of AI has substantially increased in the U.K., as of 2024, approximately 75% of financial firms are employing AI technologies, a significant rise from 53% previous two years.

Tax Preparation Services Market Driver

Increasing Small and Medium Enterprises Boosting Market Growth

Small and medium-sized companies (SMEs) often have to navigate complex taxes with limited internal resources to follow tax rules and regulations. As a result, the demand for tax preparation services increases. Small companies often lack professionals, especially professionals, and have limited internal resources, affecting the income parts of the tax preparation services that help them plan and prepare.

In addition, when small and medium-sized businesses develop and grow, their tax requirements also become more complicated, which is believed to speed up the expansion of tax preparation services to help navigate the complex tax environment.

• For instance, according to the Organization for Economic Co-operation and Development (OECD), SMEs constitute approximately 99% of all businesses. They are responsible for about 70% of employment and 50-60% of value added in OECD countries.

Tax Preparation Services Market Restraint

Changing Regulations and Budget Constraints Create Barriers to Market Growth

Regulatory adjustments and financial restrictions significantly impact the tax preparation sector, affecting operating practices and market demand. Governments worldwide often update tax rules to improve compliance, promote income, and create simple tax rates.

Economic limits that tax authorities face also affect the efficiency of the tax administration. The offer of tax treatment services can lead to a lack of workforce and delays due to insufficient funds. In addition, budget barriers prevent the company's ability to invest in modern technologies that facilitate tax registration processes. Without adequate financing, the manufacture and maintenance of a user-friendly, effective tax registration system can be threatened, which may increase the requirement for preparation services to help taxpayers navigate the complex archiving requirements.

• For instance, India Finance Ministry sources say India is poised to introduce a new income tax code after the Union budget 2025-26 by eliminating outdated provisions and simplifying complex areas such as capital gains tax and Tax Deducted at Source (TDS) regulations. This reform seeks to make the tax code more concise and user-friendly, potentially reducing the reliance on professional tax preparation services.

Tax Preparation Services Market Opportunity

Private Equity Investments and Technological Advancements Driving Opportunities for Market Growth

The tax preparation services industry is witnessing a transformative shift driven by private equity investments and rapid technological advancements. Private equity firms are injecting capital into mid-tier and large accounting groups, enabling them to expand service offerings, integrate advanced AI-driven tax solutions, and enhance automation capabilities.

• For instance, Moore Global, backed by private equity funding, achieved record revenues of USD 5.1 billion in 2024, driven by organic growth and technological adoption.

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators
• Drivers, Restraints, Trends, and Opportunities
• Business Strategies Adopted by the Key Players
• Consolidated SWOT Analysis of Key Players

Segmentation

Analysis by Services

By services, the market is divided into tax compilation services, tax return services, tax planning and advisory services, and others.

Tax return services are essential for accurately preparing individuals' and companies' returns and ensuring compliance with legal guidelines and rules. These services organize deductions, collect and organize credit, and send tax documents to the authorities. The individual tax return carriers are the most prominent under the tax back.

• For instance, in April 2022, Royal Boon Edam International B.V. launched a ground-breaking revolving-sliding high-capacity revolving door. This new and patented automatic revolving door encompasses the latest technology within Boon Edam's signature "premium minimalistic" design.

Analysis by End User

By application, the market is divided into enterprise, individual, and others.

Individuals often face complex tax rules and rules that require professional help to navigate, which makes them look for tax preparation services for compliance and optimization of the tax return. Individuals are increasingly aware of their tax obligations, especially with the increase in GIG Economy workers and freelancers with unique tax conditions. This has inspired several individuals to use tax preparation services for accurate archiving.

• For instance, the Income Tax Department of India reported a substantial number of electronically filed returns, with over 79 million e-returns processed for the assessment year 2023-24. This reflects a strong trend toward digital adoption among individual taxpayers.

Analysis by Service Providers

By service providers, the market is divided into certified public accountants (CPAs), tax preparation firms, independent tax preparers, financial & wealth management firms, and others.

Certified Public Accountants (CPAS) dominate the tax preparation market due to their expertise, credibility, and ability to handle complex taxes. CPAS has intensive tax coding knowledge, which is quickly complicated and is exposed to frequent changes. Their ability to ensure compliance and optimize cuts makes them equally preferred options for companies and individuals. CPA is reliable due to its strict certification process and moral standards. In addition to tax preparation, CPAS offer counseling services such as financial planning, property management, and professional advice, making them indispensable for individual taxpayers and companies.

• For instance, the Commerce Clearing House (CCH) publishes the Standard Federal Tax Reporter, a comprehensive multi-volume resource that provides detailed annotations and interpretations of U.S. tax laws. This compilation spans approximately 70,000 pages, including notations after each statute that reference relevant cases, legislative reports, Treasury regulations, and other explanatory materials. CCH considers this extensive volume to be "the tax code" since an expert needs to know all 70,000 pages to understand the tax code in full.

Regional Analysis

By region, the market is divided into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

North America was the most crucial place in 2024 in the tax preparation marketplace. North America is witnessing the fastest boom in the marketplace record for tax practice for the forecast duration. The market for tax education services in North America is experiencing a significant increase, driven by numerous elements, which include expanded complexity, technological progress, and a boom in small and medium-sized agencies (SMEs). Tax control structures offer advantages, such as low tax rates, simplified tax calculation, computerized submission of taxes, and occasional mistakes. Compared to different international locations, developed economies in North America have increasingly skilled tax authority systems.

• For instance, according to the U.S. Chamber of Commerce report, as of April 2023, there were approximately 33.2 million small businesses in the U.S., which combined account for 99.9% of all U.S. businesses.

Key Players Covered

The global Tax Preparation Services market is moderately consolidated, with the top 10 players holding a significant share of the market. The top 10 players hold around 50% to 55% of the market share.

The report will include the profiles of the following key players:

• Deloitte Consulting LLP (U.S.)
• Ernst & Young Global Limited (U.K)
• H&R Block Inc. (U.S.)
• KPMG International Limited (Netherlands)
• Jackson Hewitt Tax Service Inc. (U.S.)
• PricewaterhouseCoopers International Limited
• Thomson Reuters Corporation (Canada)
• Taxback International (Ireland)
• BDO Global (Belgium)
• Grant Thornton (U.S.)
• RSM US LLP (U.S.)
• Liberty Tax Service (U.S.)
• Ryan LLC (U.S.)
• Crowe Global (U.S.)
• Robert Hall & Associates (U.S.)

Key Industry Developments

• In May 2024, Sikich LLC, a worldwide professional services firm supported by technology, secured a minority growth investment of USD 250 million from Bain Capital. This funding enables Sikich to utilize Bain Capital’s extensive resources while promoting rapid and strategic growth, improving operational efficiency, and solidifying its leadership role in the professional services industry.
• In March 2023, Taxaroo, a tax technology company based in the U.S., introduced ZeroTax.ai, a service powered by AI that answers tax questions. Also referred to as TaxGPT, this platform offers complimentary tax advice that users can choose to verify with a tax professional. ZeroTax.ai aims to provide trustworthy answers to a wide range of tax-related inquiries, including topics such as tax filing, credits, deductions, and more. Through a smooth integration with Taxaroo's accounting practice management software, the solution benefits tax enterprises and CPA firms.
• In January 2023, April Tax Solutions Inc. launched AprilPro, an AI-powered tax solution designed for individuals with complex financial situations. It integrates with existing financial accounts, reducing the need to gather documents, and allows users to upload files for review by a tax professional. This hybrid model aims to provide a streamlined and accurate tax filing experience within a trusted financial environment.
• In November 2022, Cinven acquired TaxAct for approximately USD 720 million and will merge it with its existing portfolio company, Drake Software, under a single holding company. This combination aims to create a full-service tax ecosystem, supporting both professional tax preparers and individual tax filers.