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Paying a professional to prepare a federal Form 1040 with Schedules 1-3 costs $236 on average, with most fees falling between $150 and $328, according to the NATP 2025 Fee Study, the latest available. CPAs charge more than enrolled agents or non-credentialed preparers. Itemizing, self-employment, rental income, state returns and business returns all raise the bill.
This guide covers what to expect when you file your tax year 2026 return in 2027: the average fees, what pushes the price up, how preparers bill, and the extra charges to ask about before you sign up.
The most recent national data comes from the National Association of Tax Professionals (NATP), whose 2025 Fee Study was released in November 2025. Expect fees for the 2027 filing season to start from these levels; many firms adjust prices each year, so always get a quote.
Source: NATP 2025 Fee Study (PDF).
Credentials make a clear difference. NATP's averages for a Form 1040 by preparer type:
For itemized deductions, NATP reports Schedule A adds about $65 at a CPA and about $59 with an EA.
NATP does not publish averages for Schedule C, Schedule E, state returns or business entity returns. The figures below are typical market ranges (estimates) from preparer price lists, not NATP data. Your quote can be higher or lower.
A W-2 employee taking the standard deduction will usually pay at the low end. A freelancer with a rental property and investment income should expect several times the base fee.
Partnership (Form 1065), S corporation (Form 1120-S) and C corporation (Form 1120) returns take more time than an individual return. As a typical market range, small CPA firms often quote from several hundred dollars to $3,000 or more, driven mainly by the condition of the books, the number of owners and the number of states. Treat these as estimates and ask for a written quote.
A few rule changes affect how much work goes into a tax year 2026 return.
For payments made after December 31, 2025, businesses only have to issue a 1099-NEC or 1099-MISC once payments reach $2,000 (up from $600), with the threshold indexed for inflation from 2027 under the One Big Beautiful Bill Act. Freelancers and gig workers may receive fewer forms, but all income must still be reported even if no 1099 arrives. If your preparer has to rebuild income from bank statements and invoices, expect a higher fee. A simple income log kept through the year avoids that.
Third-party networks such as payment apps and online marketplaces issue a 1099-K when payments exceed $20,000 and 200 transactions. Card payments have no threshold, so a business that takes card payments can receive a 1099-K for any amount. Each 1099-K needs to be reconciled against your books, since it can include personal transfers, refunds or fees. Bring the forms and your own records together to keep preparation time down.
The IRS began phasing out paper refund checks from September 30, 2025 (IR-2025-94, Executive Order 14247). Give your preparer your bank account details for direct deposit; limited exceptions such as prepaid debit cards and digital wallets apply. Paper refunds may take six weeks or longer. Be wary of paid "refund transfer" products that deduct preparation fees from your refund; they add cost and are rarely necessary.
Base rates give a starting point. The final bill depends on how much time and expertise your return needs.
This is the biggest driver. Common reasons a return costs more:
Disorganized records cost money. Many preparers charge extra when clients arrive with missing forms, loose paper receipts or no summaries, because sorting and follow-up take time. Send clean, digital, categorized files and include last year's return.
Fees often rise closer to the deadline. In March and early April many preparers add rush fees, while some offer early-season discounts. Starting early also leaves time to chase missing forms.
Preparers in high-cost metro areas usually charge more than those in smaller cities or rural towns, reflecting office costs, demand and state filing rules. If you do not need in-person help, a remote preparer in a lower-cost area can be cheaper.
Tax software usually costs far less than a preparer; many simple returns can be filed for free or for under about $150 (estimate). DIY works best when:
Professional help becomes more valuable as your finances get more complex: self-employment, rental property, multiple states or a major life change. A good preparer may find deductions and credits that software prompts miss, and can answer IRS letters later.
Online services that connect you with a tax professional sit between DIY software and a local firm on price. A local CPA costs more (NATP's CPA average is $280 for a 1040, before extra schedules) but often provides year-round planning and knows your history. If you have business income or several income streams, that relationship can be worth the difference. If your taxes are simple and you are comfortable online, a lower-cost service may be enough.
Enrolled agents are federally licensed to represent taxpayers before the IRS. They either pass a three-part IRS exam or qualify through past IRS work experience. Tax attorneys are licensed lawyers who specialize in tax law.
Enrolled agents are a good fit when:
Tax attorneys are needed when:
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Most preparers use one or a mix of these models. Ask which one applies before work starts.
A single price for the return, often covering federal and state filing and a short consultation. You know the cost upfront. As a reference point, NATP's average for a 1040 with Schedules 1-3 is $236; add-ons such as Schedule C or E typically increase the fee (see the estimates above).
Some CPAs, EAs and attorneys bill by the hour, mainly for audits, advisory work or jobs with an unclear scope. As a typical market range, hourly rates often run from about $150 to $400, and more in major metros (estimate). The downside is that you will not know the final bill until the work is done, so ask for an estimate of hours.
Each form or schedule has its own price, and you pay only for what your return needs. This makes it easy to see which parts of your return drive the cost.
Business owners often pay a monthly fee that combines tax preparation with bookkeeping, payroll, quarterly estimated tax calculations and planning. For uncertain projects, such as cleaning up books, filing several years of back returns or audit representation, some firms charge a retainer. Pricing varies widely, so compare what is included, not just the monthly figure.
Many quotes cover only the federal return. Ask about these extra charges before you agree. The ranges are typical market ranges (estimates), not survey averages:
A paid preparer must sign your return and include their Preparer Tax Identification Number (PTIN). Ask for a complete copy of your return, and never sign a blank return.
Ask for a price before booking. Share last year's return so each preparer can estimate accurately, and get the quote in writing with the preparer's name and credential.
Confirm whether the fee covers state returns, e-filing, questions during the year and help with IRS notices. Choose a preparer you can reach after filing if the IRS has questions.
A simple W-2 return does not need the most expensive firm, and a return with business income should not go to the cheapest one. Pay for the expertise your return actually needs.
Some preparers discount returns brought in early in the season or offer referral credits. It is worth asking.
For the 2027 filing season, budget around $236 for a professionally prepared 1040 with Schedules 1-3, based on the most recent NATP data, with most fees between $150 and $328. CPAs average more ($280) than EAs ($228). Self-employment, rentals, state and business returns cost more; get a written quote, ask about extra charges, and bring organized records, including your bank details for a direct-deposit refund.
Question: What is the average cost of tax preparation for an individual?
Answer: According to the NATP 2025 Fee Study, the average fee for a Form 1040 with Schedules 1-3 is $236, with a typical range of $150 to $328. Itemizing on Schedule A adds about $53 to $65.
Question: What is the average cost of tax preparation by a CPA?
Answer: NATP reports an average of $280 for a Form 1040 prepared by a CPA, compared with $228 for an enrolled agent, $184 for an AFSP participant and $186 for a preparer with no designation. Schedule A adds about $65 at a CPA.
Question: How much does it cost to file a return with self-employment or rental income?
Answer: NATP does not publish averages for Schedule C or Schedule E. As a typical market range (estimate), each schedule often adds $100 to $200 or more to the base fee, depending on how organized your records are.
Question: What hidden fees should I watch for?
Answer: Common extras include state returns, e-filing fees, amended returns, refund transfer products, audit protection plans, rush fees and charges for questions after filing. Ask for a full fee schedule upfront.
Question: Will the new $2,000 1099 threshold change what I pay?
Answer: It can. You may receive fewer 1099-NEC or 1099-MISC forms for tax year 2026, but you still have to report all income. If your preparer has to reconstruct income from bank records, the fee is likely to be higher.
Question: When is professional tax preparation worth the cost?
Answer: It is usually worth it for business income, rental property, significant investments, multiple states, major life changes or IRS notices. For a simple W-2 return with the standard deduction, tax software is often enough.
Related read: professional tax.
For CPA firms: Madras Accountancy supports U.S. CPA firms with tax preparation and planning, including seasonal capacity for busy season. See our tax preparation and planning services.
The section 4960 excise tax is 21% of nonprofit pay over $1M. From 2026 it covers all employees. See the medical carve-outs, Form 4720 and a worked example.
The paid family and medical leave tax credit is permanent from 2026. See the 12.5% to 25% rates, the premium option, the 6-month rule and how Form 8994 works.
Opportunity zones become permanent in 2027 under the One Big Beautiful Bill. See the new deferral, rural bonus, and the 2026 handoff.
