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:
Bundled Model (AUM)
Charge a 1% AUM fee
Allocate ~0.20% of that for tax planning
Seamless client experience
Flat-Fee Tax Planning + Prep
$2,000/year flat fee
Includes quarterly check-ins + annual return
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.