Tax lawyers advise clients on tax-related matters and represent them in disputes with tax authorities. They help ensure their clients comply with tax laws and pay the appropriate amount of taxes. Tax lawyers work for law firms, accounting firms, corporations, government agencies, and as independent practitioners. The highest salaries for tax lawyers are earned by those working for large prestigious law firms and major accounting firms.
Tax Lawyer Salaries by Experience
According to the U.S. Bureau of Labor Statistics, the average annual salary for all lawyers as of May 2020 was $126,930. However, salaries can vary significantly based on factors like location, firm size, specialty, and years of experience. Here are some typical tax lawyer salary ranges:
- Entry level (0-3 years experience): $50,000 – $120,000
- Mid-level (3-6 years): $80,000 – $180,000
- Experienced (6-10 years): $100,000 – $250,000
- Senior (10+ years): $150,000 – $500,000+
The highest salaries go to equity partners at major law firms who have practiced tax law for many years. After 10-15 years, it’s possible for tax partners at large firms to make over $1 million per year.
Salaries at Top Law Firms
The highest paying law firms for tax attorneys are large international firms with thousands of attorneys worldwide. These elite firms charge premium rates for their services and compensate their partners and associates accordingly. An overview of tax lawyer salaries at top firms:
- First year associate: $190,000
- Fifth year associate: $330,000
- Income partner: $500,000 – $1,000,000+
- Equity partner: $1,000,000 – $10,000,000+
The most profitable partners at these firms can make well over $10 million per year. To reach this level takes many years but offers the highest salaries in the tax law profession.
Examples of Top Paying Law Firms
Here are some examples of elite U.S. law firms with large tax practices that offer the highest tax attorney salaries:
- Skadden, Arps, Slate, Meagher & Flom
- Latham & Watkins
- Kirkland & Ellis
- Baker McKenzie
- Jones Day
- Morgan, Lewis & Bockius
- Sidley Austin
- DLA Piper
These firms have major offices in cities like New York, Chicago, Los Angeles, and Washington D.C. where the most lucrative tax law work is done. The highest salaries go to partners and associates in these offices.
Salaries at Accounting Firms
The Big Four accounting firms (Deloitte, PwC, EY, KPMG) also employ tax attorneys and pay competitive salaries. Here are sample salaries for tax professionals at these firms:
Position | Salary Range |
---|---|
Staff Accountant | $50,000 – $70,000 |
Senior Associate | $80,000 – $110,000 |
Manager | $120,000 – $180,000 |
Senior Manager/Director | $150,000 – $230,000 |
Partner | $250,000 – $500,000+ |
The Big Four firms provide excellent training and exposure for tax professionals. Many partners at these firms who specialize in tax can make over $1 million annually.
In-House Salaries
Some tax attorneys work as in-house counsel for corporations. As full-time employees, in-house counsel often earn slightly less than law firm partners but still command high salaries. According to Robert Half Legal, salaries for in-house tax attorneys range from $137,500 for managers to $276,750 for VPs.
In-house tax lawyers enjoy steady salaries with good benefits. Bonuses and stock options provide additional compensation. With experience, salaries for heads of tax at major companies can exceed $500,000.
Government Agency Salaries
Government agencies like the IRS and Department of Justice also employ tax attorneys. According to the U.S. Office of Personnel Management, salaries for federal tax attorney jobs start around $60,000 for entry level and top out around $170,000 for management roles.
State and local government tax attorney roles have lower salaries, averaging $55,000 to $90,000. Government tax law jobs provide good work/life balance but much lower pay than the private sector.
Tax Law Professor Salaries
Another career option for tax attorneys is academia. The salaries for tax law professors vary by institution and experience level but reach over $300,000 at top schools. According to research from the Society of American Law Teachers, the average salaries are:
- Assistant Professor: $85,916
- Associate Professor: $105,928
- Full Professor: $144,768
Professors enjoy flexibility and the freedom to research and write. Tenured faculty at elite schools like Harvard and Yale can make over $400,000 per year after many years.
Conclusion
In summary, the highest paying tax attorney jobs are at large international law firms and accounting firms. Senior partners who specialize in tax at these prestigious firms can make over $1 million annually. Salaries exceed $500,000 for many experienced tax partners and directors at top firms and corporations.
However, entry level tax attorney salaries are much more modest, starting around $50,000 to $90,000. With dedication and expertise, tax lawyers can advance to higher paying roles over their careers. The highest salaries go to those who stick with private practice and make partner at a major law or accounting firm.