NAICS 541213 Quarterly Industry Report
Tax Preparation Services
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 541213Sector: Professional, Scientific, and Technical Services (54)Updated: Q1 2026
About This Report
This industry profile for Tax Preparation Services (NAICS 541213) draws on data from the U.S. Census Bureau[5] NAICS classification, Bureau of Labor Statistics[6] seasonal employment surveys, IRS Statistics of Income[9] filing data, and the National Association of Tax Professionals[8]. Published by Fair Market Value and updated quarterly, it provides valuation professionals and lenders with classification context and market intelligence for assessing tax preparation businesses. Additional data is drawn from SBA[10].. The editorial analysis reflects the independent assessment of FairMarketValue.com's research team.
Industry Snapshot
Key metrics for the tax preparation services industry.
NAICS Sector
54
Professional, Scientific, and Technical Services
Industry Definition & Overview
Tax Preparation Services (NAICS 541213) encompasses establishments that provide tax preparation and related services to individuals and businesses Census Bureau NAICS 541213[5]. About 33,431 active companies generate an estimated $14.3 billion in annual revenue, with employment averaging around 95,000 workers during peak tax season. Employment patterns are highly seasonal, peaking at about 142,000 in February and declining to near 62,000 in August BLS Employment Data[6], reflecting concentrated demand during annual filing deadlines.
Because tax filing is legally required for nearly all Americans, tax preparation tends to be recession resistant, providing stable demand even during economic downturns. However, the industry confronts pressure from electronic filing and self-service software platforms such as TurboTax that allow consumers to file independently. Competition remains intense. Major national players include Intuit, H&R Block, and RSM US, though the sector consists primarily of small, independent storefront operations.
Geographic distribution is uneven across states. Georgia had the highest concentration of tax preparers, followed by Oregon, Alaska, and Michigan when measured by location quotient BLS Geographic Data[7]. The industry has grown at a CAGR of 1.2% between 2020 and 2025, indicating modest expansion despite competitive pressures from automation and self-service platforms. Over 23,000 tax professionals with education and advocacy NATP[8].
What's Included in This Industry
- Individual income tax return preparation
- Federal and state income tax filing services
- Tax planning and consultation
- Estimated tax payment calculations
- Tax document organization and review
- Electronic filing (e-file) services
- Amended tax return preparation
- Business tax preparation services
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Professional, Scientific, and Technical Services | 54 |
| Subsector | Professional, Scientific, and Technical Services | 541 |
| Industry Group | Accounting, Tax Preparation, Bookkeeping, and Payroll Services | 5412 |
| NAICS Industry | Accounting, Tax Preparation, Bookkeeping, and Payroll Services | 54121 |
| National Industry | Tax Preparation Services | 541213 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 541211 | Offices of Certified Public Accountants | Offices of Certified Public Accountants provide broader accounting services including audit and attestation work that tax preparation firms (541213) cannot perform without CPA certification. |
| 541219 | Other Accounting Services | Other Accounting Services deliver specialized bookkeeping and payroll processing that frequently integrates with tax preparation workflows, helping clients maintain records for accurate annual filing. |
| 541214 | Payroll Services | Payroll Services process employee compensation and withholding that tax preparation professionals often bundle with tax services, creating integrated solutions for business clients. |
| 541110 | Offices of Lawyers | Offices of Lawyers coordinate with tax preparers on estate planning, business structure decisions, and tax controversy representation requiring both legal and tax expertise. |
| 541199 | All Other Legal Services | All Other Legal Services includes paralegal and document preparation functions that support tax preparation firms with regulatory filings and compliance documentation. |
| 561110 | Office Administrative Services | Office Administrative Services provide outsourced billing, recordkeeping, and operational support that tax preparation firms rely on for client intake, scheduling, and back-office management. |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 14.1% | 3,991 |
| 2 | Texas | 8.8% | 2,489 |
| 3 | Florida | 8.7% | 2,479 |
| 4 | New York | 6.5% | 1,855 |
| 5 | Georgia | 3.6% | 1,028 |
| 6 | Illinois | 3.4% | 955 |
| 7 | Ohio | 3.3% | 932 |
| 8 | Pennsylvania | 3.2% | 910 |
| 9 | North Carolina | 2.8% | 790 |
| 10 | Michigan | 2.7% | 774 |
% Of Establishments
0%
14%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
2,832
Total SBA Loans
$786.7M
Total Loan Volume
$278K
Average Loan Size
11 yrs
Average Loan Term
10.89%
Average Interest Rate
16,112
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA size standard for NAICS 541213 is $25.0 million in average annual receipts SBA Size Standards[11]. Tax preparation firms at or below this threshold qualify as small businesses for federal contracting set-asides and SBA loan programs. Eligible businesses can access SBA 7(a) loans[12] for working capital, equipment, and acquisition financing, while 504 loans[13] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Live Oak Banking Company | 192 | $115.2M | $600K |
| 2 | United Midwest Savings Bank National Association | 80 | $71.6M | $895K |
| 3 | U.S. Bank, National Association | 136 | $68.6M | $504K |
| 4 | Newtek Bank, National Association | 320 | $49.5M | $155K |
| 5 | Pathward National Association | 16 | $47.2M | $3.0M |
Frequently Asked Questions
Common questions about this industry.
What types of businesses are classified under NAICS 541213?
NAICS 541213 covers establishments providing tax return preparation, tax planning, and related tax services. This includes seasonal and year-round tax preparation offices, independent tax preparers, and franchise operations like H&R Block. CPA firms are classified under 541211, and bookkeeping services fall under 541219. Census Bureau NAICS 541213[5]
How is the tax preparation industry structured?
About 33,431 companies generate $14.3 billion in annual revenue. Major players include Intuit, H&R Block, and RSM US, though most firms are small independent operations. Seasonal employment ranges from 62,000 in summer to 142,000 during peak filing season BLS Employment Data[6].
What is the SBA size standard for tax preparation services?
The SBA size standard for NAICS 541213 is $25.0 million in average annual receipts SBA Size Standards[11]. Firms below this threshold qualify for SBA loan programs, federal contracting, and other small business assistance.
What NAICS codes are related to tax preparation?
Related codes include 541211 (CPA Offices), 541219 (Other Accounting Services), 541214 (Payroll Services), 541110 (Offices of Lawyers), 541199 (Other Legal Services), and 561110 (Office Administrative Services). Each either competes with, complements, or supports tax preparation operations.
Which industries work most closely with tax preparers?
CPA firms (541211) compete and refer. Bookkeeping services (541219) maintain records for tax filing. Law offices (541110) coordinate on estate and entity matters. Banks (522110) provide financial records and refer clients. Payroll services (541214) process withholding integrated with tax compliance.
What activities are included in NAICS 541213?
Activities include individual and business tax return preparation, electronic filing, tax planning and consultation, estimated tax payment calculations, document review and organization, and amended return preparation. Ongoing bookkeeping (541219), payroll processing (541214), and audit services (541211) are classified separately. Census Bureau NAICS 541213[5]
Can you get an SBA loan for a tax preparation business?
Yes. Tax preparation businesses with annual receipts of $25.0 million or less qualify for SBA programs including 7(a) loans, 504 loans, and microloans. Funding can support office buildout, technology investments, franchise fees, marketing, and working capital during the off-season months. SBA Loan Programs[14]
Which states have the highest concentration of tax preparation businesses?
Georgia had the highest concentration of tax preparers by location quotient, followed by Oregon, Alaska, and Michigan BLS Geographic Data[7]. Population density, income levels, and state-specific tax complexity influence geographic distribution. Urban areas with higher concentrations of self-employed workers tend to support more tax preparation businesses.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]Census Bureau NAICS 541213 census.gov
- [6]BLS Employment Data bls.gov
- [7]BLS Geographic Data bls.gov
- [8]NATP irs.gov
- [9]IRS Statistics of Income irs.gov
- [10]SBA sba.gov
- [11]SBA Size Standards sba.gov
- [12]SBA 7(a) loans sba.gov
- [13]504 loans sba.gov
- [14]SBA Loan Programs sba.gov
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