One of the first questions people ask when looking for a CPA is "how much is this going to cost?" The honest answer is: it depends. But "it depends" isn't very useful, so this guide breaks down what actually drives CPA pricing — and gives you real numbers to benchmark against.
Individual Tax Return (1040) — What to Expect
For a straightforward individual tax return — W-2 income, standard deduction, maybe a savings account — you probably don't need a CPA at all. Tax software handles this well for $0–$50.
CPAs become valuable when complexity enters the picture:
- Simple 1040 (W-2 + few investments): $150–$400
- 1040 with itemized deductions: $300–$600
- 1040 with rental property (Schedule E): $500–$1,200
- 1040 with self-employment income (Schedule C): $400–$900
- 1040 with multiple states: add $150–$400 per state
- 1040 with RSUs, stock options, or ESPP: $600–$1,800
- Complex high-income return (multiple income types, AMT, investments): $1,500–$5,000
Business Tax Returns — What to Expect
- S-Corp return (Form 1120-S) + owner's 1040: $1,200–$3,500
- Partnership return (Form 1065) + K-1s: $1,000–$4,000
- C-Corp return (Form 1120): $1,500–$5,000
- Sole proprietor (Schedule C only, moderate complexity): $600–$1,500
- Multi-state business: add $300–$700 per state
Ongoing Monthly Services — What to Expect
Many small businesses work with a CPA or accounting firm on a monthly basis rather than just at tax time. This typically includes bookkeeping, payroll, and quarterly advisory:
- Basic bookkeeping (revenue under $500k): $300–$800/month
- Full-service accounting (books + payroll + quarterly): $800–$2,500/month
- Fractional CFO services: $2,000–$8,000/month
What Drives CPA Pricing
Complexity
The single biggest driver. A return with a W-2 and a bank account takes an hour. A return with six rental properties, a partnership K-1, foreign accounts, and stock option exercises can take 15+ hours. CPAs charge for time, so complexity directly drives cost.
Location
A CPA in San Francisco or New York City charges significantly more than one in Tulsa or Memphis — not because they're better, but because their overhead and market rates are higher. If you're comfortable with a remote CPA, you can often get equivalent quality at lower rates by hiring outside major metros.
Firm size
Large national firms (Big Four, regional firms) charge premium rates and are generally overkill for small businesses or individuals. Solo practitioners often charge 30–50% less for comparable work. The trade-off is depth of bench and specialization — a solo practitioner may not have the specialist expertise a complex situation requires.
Specialty
Specialists in high-demand niches — cannabis, crypto, international tax, oil and gas — charge more than general practitioners. The premium is usually worth it: a cannabis CPA who knows 280E inside out will save you far more than the fee differential.
Billing Models: Hourly vs. Fixed Fee vs. Retainer
Hourly billing (typically $150–$500/hour depending on firm and market) is common but creates uncertainty — you don't know what you'll owe until the work is done. Ask for a time estimate upfront.
Fixed fee is increasingly common, especially for tax preparation. You know the price before you start, which makes budgeting easy. The risk: some firms low-ball the quote and then charge "out of scope" fees for anything extra.
Monthly retainer is best for ongoing relationships where you want year-round access — bookkeeping, quarterly reviews, advisory. The fee covers a defined scope of services; anything beyond that is billed separately.
Signs You're Overpaying
- Your return is simple but you're paying over $1,000 — a basic 1040 with W-2 and standard deduction should never cost this much
- You're being billed for things that are included in standard software (e-filing, for example)
- The fee jumps significantly year over year without a complexity increase
- You're charged per phone call or question — reasonable firms include basic communication in their fees
Signs You're Underpaying (and Why That's Risky)
- A complex business return for under $500 — someone is cutting corners
- No engagement letter or written scope of services
- They can't explain what they did or why when you ask
- They're not asking questions about your situation — just asking for documents
How to Get a Fair Quote
Call or email 2–3 CPAs in your area, describe your situation specifically (income type, approximate income, any complexity factors like rental properties or business income), and ask for a fee range. Most will give you an estimate, and some will do a free 15–20 minute consultation first.
Don't choose purely on price. A CPA who charges $200 more but proactively identifies a $1,000 deduction you were missing is $800 cheaper than the cheaper option. Value is what matters, not cost in isolation.