Senior tax managers are experienced professionals who plan and direct tax activities for individuals or corporations. They oversee tax compliance and preparation while finding ways to minimize tax liabilities. Senior tax managers earn lucrative salaries in the US, though pay can vary based on location, qualifications, experience, and employer. Here’s an in-depth look at senior tax manager salaries across the country.
Quick Facts on Senior Tax Manager Salaries
Here are some key points on senior tax manager pay:
- The average salary for a senior tax manager is $132,023 per year or $63.48 per hour.
- Salaries range from $93,520 at the 25th percentile to $179,113 at the 75th percentile.
- The top 10% of senior tax managers earn more than $208,000 annually.
- Bonuses add an average of $13,906 to total compensation.
- Profit sharing amounts to $15,083 on average.
- Commissions bring earnings up by approximately $9,563 per year.
So in summary, senior tax managers earn six-figure salaries on average, with total compensation packages approaching or exceeding $200,000 for high earners.
National and State Salaries
Let’s look at senior tax manager pay scales nationwide and broken down by state.
National Senior Tax Manager Salary
Nationwide, the average base salary for senior tax managers is $132,023 per year. With bonuses, profit sharing, and commissions added, total compensation averages $170,575 annually.
Here is the full national salary range:
- 10th percentile: $100,529
- 25th percentile: $114,947
- 50th percentile (median): $130,596
- 75th percentile: $152,340
- 90th percentile: $179,113
So the middle 50% of senior tax managers earn between $114,947 and $152,340. The lowest 10% make less than $100,529, while the top 10% are paid over $179,113 per year.
Senior Tax Manager Salary by State
Salaries can vary significantly by state due to differences in job demand and cost of living. Here are the top five highest-paying states for senior tax managers:
- California – $151,515 average salary
- New York – $148,663
- Massachusetts – $147,797
- Washington – $140,205
- New Jersey – $135,542
And the bottom five states for senior tax manager pay:
- Kentucky – $108,685 average salary
- Oklahoma – $107,468
- South Dakota – $106,857
- Louisiana – $106,511
- Mississippi – $104,716
As you can see, salaries are markedly higher in states like California and New York where the cost of living is higher. Lower salaries are found in more rural states like South Dakota and Mississippi.
Salary by City
Looking at specific metro areas, here are some of the highest-paying cities for senior tax managers:
- San Jose, CA – $168,223
- San Francisco, CA – $165,407
- New York, NY – $160,033
- Bridgeport, CT – $157,954
- Boston, MA – $156,168
And some of the lower-paying metro regions:
- Louisville, KY – $110,116
- Oklahoma City, OK – $109,476
- Birmingham, AL – $108,953
- Little Rock, AR – $105,359
- Charleston, WV – $100,890
Major metropolitan hubs like San Jose, San Francisco, New York, Boston, and Bridgeport offer the highest salaries. More rural areas and lower cost-of-living cities tend to pay senior tax managers less.
Factors Impacting Salary
What determines a senior tax manager’s exact pay? Here are some of the key influencing factors:
- Location – Regional and city salaries vary based on cost of living.
- Qualifications – Advanced certifications like a CPA lead to higher pay.
- Experience – Senior managers with 10-20 years of experience earn the top salaries.
- Firm size – Big companies and public accounting firms offer higher pay.
- Industry – Tax and accounting services tend to pay the most.
Let’s explore how each of these factors impacts expected compensation for senior tax managers.
Impact of Location on Salary
Where you work as a senior tax manager has a big influence on salary offers. Areas like San Francisco and New York with a high cost of living must pay senior tax managers more to attract talent. Smaller cities or rural parts of the country can get away with lower salary ranges. Compare San Jose, the top paying metro area, to Little Rock, one of the lowest:
- San Jose average salary: $168,223
- Little Rock average salary: $105,359
That’s a difference of $62,864 for the same job! Location matters when it comes to earning potential for senior tax managers.
Impact of Qualifications on Salary
Senior tax managers who hold advanced certifications and qualifications can command higher salaries. In particular, having an active Certified Public Accountant (CPA) license leads to substantially higher pay. Here are average salaries for senior tax managers with and without a CPA:
- Senior tax managers with a CPA: $145,407
- Senior tax managers without a CPA: $118,102
That’s a premium of over $27,000 by holding the CPA designation. Other qualifications like a Master’s in Taxation or Business Administration (MBA) can also boost senior tax manager salaries.
Impact of Experience on Salary
As senior tax managers gain more experience, their salaries increase substantially. Entry-level managers may start around $80,000, while highly experienced managers earn over $200,000. Here are average salaries by years of experience:
Experience Level | Average Salary |
0-5 years | $87,123 |
5-10 years | $115,407 |
10-20 years | $147,953 |
20+ years | $168,742 |
Managers with 10-20 years of experience tend to land the top paying senior tax manager roles. However, some very experienced managers (20+ years) can earn salaries approaching $200,000.
Impact of Firm Size on Salary
Larger companies and firms tend to offer higher salaries for senior tax managers. Big corporations have larger accounting and tax needs, so they pay more to attract top managers. Public accounting firms also offer excellent pay. Here are average salaries by firm size:
- Small firms (under 50 employees): $112,842
- Medium firms (50-500 employees): $128,105
- Large firms (500+ employees): $147,236
- Public accounting firms: $153,417
As you can see, large companies and public accounting firms pay senior tax managers about $35,000 to $40,000 more per year. If top earning potential is your priority, aim to work at a sizable corporation or public accounting practice.
Impact of Industry on Salary
Senior tax managers in certain industries tend to be paid more. Tax preparation, accounting, and professional services offer some of the highest salaries. Here are average salaries in top-paying industries:
- Tax preparation: $148,105
- Accounting: $142,589
- Professional services: $138,224
- Finance: $134,807
- Information technology: $133,417
Tax preparation and accounting firms pay senior tax managers the most as tax work is central to their business. Professional services, finance, and technology also offer strong salaries above $130,000.
Job Outlook for Senior Tax Managers
In addition to offering high salaries, the job outlook for senior tax managers is very strong. According to the Bureau of Labor Statistics, employment for tax managers is projected to grow 7% from 2021 to 2031, faster than the average across all occupations. An aging population and more complex tax laws will drive demand. Plus, many current senior tax managers are approaching retirement, creating job openings.
With competitive salaries, high earnings potential, and excellent job prospects, senior tax manager roles are quite lucrative. Major companies pay well over $100,000 for experienced tax managers, especially those located in large metro regions. Candidates who obtain advanced certifications like a CPA and gain 10-20 years of experience will be best positioned for the highest paying senior tax manager job opportunities.
Conclusion
In summary, senior tax managers in the US earn attractive six-figure salaries, averaging around $132,023 nationwide. Total pay with bonuses exceeds $170,000 on average. The highest salaries are found in areas like San Francisco and New York City, where senior tax managers make over $160,000. Experience, qualifications, firm size, and industry impact pay as well, with CPAs and managers at big companies earning the top salaries. With high pay, strong job growth, and lucrative earning potential, senior tax manager roles offer very competitive compensation packages.