Master’s in Taxation Program Guide

How many times while filing your taxes have you thought “they should have taught this in school”? Guess what? You can learn how to do taxes in school. In fact, you can even get an online master’s in taxation.

With a master’s in taxation, you gain the knowledge needed to become a skillful tax professional. Your degree can help you find employment in tax preparation, tax auditing, and financial reporting.

Most degree programs can be completed in 1-2 years. In that time, you will learn tax accounting, tax law, and gain a comprehensive knowledge of tax procedure.

The Bureau of Labor Statistics reports the 2023 median pay for accountants and auditors was $79,880 and the need for these professionals is projected to increase by 4% from 2022-23.

People with a master’s degree in taxation often work as tax managers, tax accountants, certified public accountants, controllers, or Internal Revenue Service (IRS) agents. Jobs for accountants and auditors are projected to increase by 4% over the next decade, about the same rate as other jobs.

When deciding whether to go to graduate school to pursue a master’s degree in taxation, consider that it will take about a year or two to earn the degree, during which time they may not be able to work. If you have to take time off from work to earn the degree, you’ll need to consider lost wages when deciding whether it is worth it.

If your bachelor’s degree is in accounting, you can become a certified public accountant (CPA). To become a CPA, you must meet the minimum educational requirements set by your state and pass the four-part CPA exam.

Becoming a CPA will increase your employment opportunities. Other certifications that might come in handy with a master’s degree in taxation are:

Students enrolled in a master’s in taxation program learn about financial reporting, auditing, and tax law. They develop the technical and analytical skills to be successful accountants and tax professionals. This program prepares students to sit for the CPA exam.

Some common courses include professional tax practice, federal taxation of income, multi-jurisdictional taxation, and corporations and shareholders. You may also need to take graduate-level accounting courses such as intermediate accounting, cost accounting, auditing, and accounting systems. However, the specific courses you need to take will vary from one school to another.

Most master’s degrees in taxation are master of science in taxation (MST) degrees. An MST degree requires about 30 college credits and prepares students for entry-level jobs in public and private accounting and taxation. Some taxation master’s programs are a master of accounting science (MAS) degree with a taxation specialization.

Many people with a master’s degree in taxation work in the accounting, bookkeeping, tax preparation, and payroll services industries. Others work in finance, insurance, government, or management.

Common job titles for tax professionals include tax manager, tax accountant, tax analyst, tax specialist, and tax preparer. Many people with this degree work as CPAs.

Others work with the IRS as revenue agents, tax counsel, appeals officers, or team coordinators. Some professionals work as enrolled agents, helping those who need help dealing with the IRS.

The average base salary for someone with a master’s degree in taxation is $96,000 per year, according to Payscale data from January 2024. Common job titles include tax manager, senior tax manager, senior tax accountant, tax director, and tax accountant.

In spring 2024, the average base salaries for these jobs were: $105,244 per year for tax managers, $138,650 for senior tax managers, $60,645 for tax accountants, $77,531 for senior tax accountants, and $159,996 for tax directors.

Salaries can vary greatly depending on the area of the country you live in and the number of years of experience. For example, tax managers earn an average of $81,000 per year with less than one year of experience and an average of $114,000 per year with 20+ years of experience. Wages also tend to be higher in areas where the cost of living is higher.

When choosing a master’s degree in taxation, graduate students should consider the cost, location, whether the classes are online or on campus, and what type of student support services the school offers. They should also consider whether the program is full-time or part-time.

In addition, graduate program candidates should check to see whether the school is accredited. Accreditation assures the student that the school offers a solid academic program and has qualified professors. In addition to regional accreditation, you should check to see if the taxation program is accredited by the Association to Advance Collegiate Schools of Business (AACSB) or another accrediting agency.

Ultimately, deciding which college to attend often comes down to cost and location. Many students prefer to attend college in their own state. Students can often save thousands of dollars by shopping around.

While the graduate admission requirements vary from one program to another, all schools require you to have a bachelor’s degree before enrolling in a graduate program. You may have extra courses to take if your bachelor’s degree is in something other than accounting or taxation.

Since grad school admissions can be competitive, you should plan on applying to at least four graduate schools. You’ll most likely have to take the GRE for at least one of them. Be sure to prepare before taking the GRE so that you do as well as possible.

You may need work experience to qualify for a graduate program. You’ll probably also need to write an essay and get letters of recommendation from your work supervisors or former professors.

Networking is important in every profession. Collaborating with others in the taxation field can help you gain personal connections for career change or growth. It can also keep you in the loop for upcoming training and continuing education opportunities.

You can also gain guidance and support, especially as a new professional, by networking in the taxation field. Tax laws and procedures change frequently so having a strong network can keep you current with trends.

Note: The insights on this page — excluding school descriptions — were reviewed by an independent third party compensated for their time by BestColleges. Page last reviewed March 12, 2024.