How Much Should You Charge for Tax Services in a Financial Advisory Practice?

If you’re a fee-only financial advisor, pricing tax services can feel like guesswork. Too low, and you risk burning time for no profit. Too high, and clients may hesitate especially if they’re already paying an AUM fee. With tax planning becoming a powerful differentiator, getting your pricing model right is more than just a math exercise it’s a strategic move.

Here’s how to confidently set your pricing for tax services in 2024 and beyond.

What’s the Right Way to Charge for Tax Services?

Most fee-only advisors bundle tax planning into their AUM fees and for good reason. According to the 2024 Kitces Research Report:

  • 92% of fee-only firms include planning in their AUM fee

  • Of that, 46% of the fee typically accounts for planning-related services

  • Advisors who serve clients with over $500,000 in assets usually find bundling more efficient and profitable

Consider bundling tax services when:

  • You manage $500K+ in client assets

  • Tax planning is part of a larger financial strategy

  • You want to simplify billing

  • You provide year-round investment management

Suggested Allocation: Dedicate 15–25% of your AUM fee to tax planning services in bundled models.

How to Set Standalone Tax Pricing (If Not Bundled)

If you’re offering tax prep or planning separately either to non-AUM clients or through a white-label model it’s essential to set firm pricing:
Sample Flat-Fee Ranges (Based on 2024 Benchmarks):

  • Form 1040 with one schedule E or C: $1,000–$2,500

  • Advanced planning with tax prep: $2,500–$4,000

  • Planning only (no prep): $750–$1,500 annually

These ranges align with other firms serving clients earning $250K+ or managing complex wealth structures.

Examples of Successful Pricing Models

Here are three ways firms are charging for tax services in 2024:

  1. Bundled Model (AUM)

    • Charge a 1% AUM fee

    • Allocate ~0.20% of that for tax planning

    • Seamless client experience

  2. Flat-Fee Tax Planning + Prep

    • $2,000/year flat fee

    • Includes quarterly check-ins + annual return

  3. White-Label Tax Service (Jalada)

    • Advisor pays wholesale rate (e.g., $950)

    • Charges client $2,000 as part of holistic plan

Ready to Get Clear on Your Tax Pricing Strategy?

Don’t leave your pricing to chance. With clear ranges, bundled options, and proven models, you can confidently charge for tax services — and boost both revenue and client retention.

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