Average Salary with a Masters in Taxation Degree

Going back to school to get your master’s degree in taxation or a related field is one of the fastest ways to earn a higher salary in an accounting career. In some states, you need a master’s degree to become a CPA, but even in states that don’t require this degree, you’ll earn more if you have advanced education. But is going back to school for a master’s degree in taxation worth your time and money? Let’s look at the salary information you can expect in this field.

Masters in Taxation Average Salary

In general, you can expect to earn 5% to 10% more if you have your master’s degree versus having just a master’s degree in any field. With a master’s degree in taxation, this translates to earning $60,000 to $120,000 annually, depending on your job title, location, and experience. According to Payscale.com, one of the highest paid positions you can take in this field once you have a master’s degree is Senior Tax Manager, where you can expect to earn $103,113 – $112,509 annually. In addition, once you have experience in the field of accounting, you can become a partner in an accounting firm or even start your own firm. The sky is the limit when it comes to earning potential as a partner or owner at a professional firm, especially in city locations.

Average Salary by Location

You’ll earn more as a CPA or in a related job field if you live in a large metropolitan area, such as New York City or Los Angeles. In addition, you can earn more by working in a state where workers in this field are in higher demand. According to Payscale.com, Illinois is the state with the highest average salary for those who have a master’s degree in taxation. Keep in mind that in locations where you’ll earn more, cost of living is usually higher, so the highest salary doesn’t always mean it is the best financial decision in terms of a job.

Masters in Taxation Education

Getting your master’s degree in taxation typically takes two to three years, and your course will prepare you to take the CPA exam, which has multiple parts and covers a number of accounting topics. Your classes will also prepare you to work in related fields, so becoming an auditor, government worker, or something else related is also an option.