How to Become a Tax Manager

Tax managers advise companies and clients on tax matters. Their tasks include preparing tax documents and advising corporations on the tax implications of mergers. Tax managers need strong research and communication skills to remain current on tax regulations and recommend tax savings strategies to clients.

Tax accountants who move into tax manager roles typically see a significant increase in their earning potential, but they need a mix of education and experience to qualify. Our guide walks through how to become a tax manager, including job requirements, salary data, and career advancement opportunities.

Steps to a Tax Manager Career

Required Education for a Tax Manager

Employers require a bachelor's degree to qualify for entry-level jobs in taxation and accounting. Because few colleges offer majors in taxation, prospective tax managers typically earn bachelor's degrees in accounting, business administration, or finance.

Accounting majors take courses in public accounting, managerial accounting, and auditing. Electives in business taxation, tax planning, and corporate finance can also strengthen the knowledge and skills needed to work in tax accounting.

Programs may also incorporate internship opportunities to provide hands-on experience. After completing a bachelor's degree, graduates can pursue entry-level roles that provide relevant tax manager experience.

Many tax professionals earn master's degrees to specialize their skills. Master's in accounting and master's in taxation programs cover advanced topics such as international taxation, tax policy, and tax research. Prospective tax managers can also consider an MBA with a concentration in accounting to strengthen their management abilities.

Required Credentials for Tax Managers

While tax managers are not required to hold specific credentials, many hold CPA credentials. As experts in public accounting, CPAs are well positioned for careers in taxation, including as tax managers. Employers may prefer or require candidates with CPA credentials for tax manager positions.

The requirements to become a CPA vary depending on the state. In most jurisdictions, a candidate must complete a 120-credit bachelor's degree plus 30 credits at the undergraduate or graduate level. A master's degree meets this requirement. CPAs must also pass the four-part CPA exam, which covers taxation, regulation, and other topics. Most states also require at least one year of relevant work experience.

CPAs must regularly renew their credentials by completing continuing education requirements. Many professional associations offer continuing education opportunities, including the Association of International Certified Professional Accountants and the National Association of Tax Professionals.

Optional Certifications and Degrees

Optional certifications can help tax managers move into specialized roles or advance their careers. These credentials demonstrate expertise in taxation, compliance, and management accounting.

In addition to a CPA license, certifications for tax managers include:

• Certified Management Accountant: Issued by the Institute of Management Accountants, CMA certification recognizes experience in enterprise finance, strategic planning, and financial management. CMAs must pass a two-part exam and renew their credentials annually.
• Certified Financial Planner: Tax managers who specialize in financial planning can pursue this certification from the CFP Board. Prospective CFPs must pass an exam and possess 2-3 years of professional experience for licensure.
• Enrolled Agent: The IRS issues the enrolled agent (EA) designation for candidates who pass the three-part Special Enrollment Examination exam. EAs must complete continuing education to renew their credentials every three years.

Required Experience for a Tax Manager

Degree-seekers can begin gaining experience while in school. For example, an undergraduate or graduate internship can build a strong foundation for entry-level accounting, taxation, and financial planning roles. Tax managers benefit from experience as tax accountants, tax analysts, and tax preparers.

How many years of experience will you need? Around 56% of tax manager job postings require 3-5 years of experience, while 29% require 6-8 years of experience, according to research from NC State University. A master's degree can substitute for several years of experience.

Should I Become a Tax Manager?

Tax manager careers appear to offer strong pay. Payscale data from March 2025 indicates an average tax manager salary of $107,270 in Jan. 2025 — significantly higher than the $62,390 average salary for tax accountants.

Tax managers can also see their earning potential grow with experience. Professionals with 10 or more years of experience report average salaries of over $112,000, according to Payscale.

Gaining the experience and education required for a tax manager career requires a significant investment of time and energy. Many tax managers hold graduate degrees and CPA licensure, which adds several years of education and training after completing a bachelor's degree. Tax managers also need professional experience before moving into management roles.

Becoming a tax manager can increase earning potential for tax professionals and people interested in management-level roles. Tax managers can also pursue advanced roles as senior tax managers and tax directors.

The Job Hunt

Many tax professionals pursue managerial roles in the middle of their careers, making networking and mentor recommendations two of the best ways to find jobs. Becoming involved in professional organizations and networking at annual conferences can also benefit prospective tax managers.

Many professional organizations also offer job boards and career resources for members. Similarly, connecting with recruiters and tax professionals through workshops, job fairs, and local organizations can translate into job opportunities.

• AICPA Global Career Hub: AICPA posts thousands of tax, accounting, finance, and management roles on its board daily, with career services resources.
• NATA Tax-Related Positions: The National Association of Tax Professionals offers a job board for those seeking tax-related positions, including roles for tax advisors, tax accountants, and tax managers.
• Tax-Talent Job Board: Prospective tax managers can look for job postings on the Tax-Talent board, which includes remote and in-person tax manager jobs across the country.
• ACCA Careers: The Association of Chartered Certified Accountants, a global organization, runs a job board that includes positions for accountants, compliance specialists, management accountants, and tax professionals.

Upward Mobility

Tax managers can build on their taxation, financial planning, and management skills to move into more advanced roles. For example, becoming a senior tax manager can present increased responsibilities and higher earning potential. These roles often require 10 years of experience.

Senior Tax Manager

Senior tax managers create taxation policies and ensure that organizations comply with tax laws. They oversee tax accountants and tax managers. Senior tax managers may also oversee internal audits and tax forecasts. These roles typically require a master's degree, a CPA license, and at least 10 years of experience.

Average annual salary (March 2025): $141,760

Tax Director

A tax director oversees an organization's tax strategy, including its tax planning and reporting. They ensure that tax filings are accurate and resolve tax issues. Director-level roles often require a master's degree, a CPA license, and many years of professional experience in tax accounting.

Average annual salary (March 2025): $164,180

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