How much should you really be charging for individual tax returns?

Pricing is one of those topics that never really goes away.

It doesn’t matter if you’re a solo operator, a growing team, or managing a mature firm, most accountants second-guess what they charge. We worry about losing clients. We compare ourselves to others. And more often than not, we undervalue our time and expertise.

Recently, someone asked in a private FaceBook group:“What’s your hourly charge-out rate as the owner? And what do you charge for individual tax returns?”

The answers came in thick and fast. If you’ve ever felt unsure about your pricing or have a gut feeling you’re charging too little, this blog is for you.

What other accountants are charging in 2025

Note: All names in this post have been changed to protect privacy. Insights were sourced from a real discussion inside a private industry group for small firm owners in Australia.

Here’s a sample of what firm owners had to say in that thread:

• Jane said she charges $330/hour and a minimum of $220 for individual tax returns. In her words: “That’s probably still on the low side.”

• Mark tries to hit around $200/hour but admitted, “I don’t track it well to be honest.”

• Alex is sitting at $175 + GST for ITRs but plans to lift to $210 soon. He noted, “Software and staffing costs are killing my margins.”

• Chris has a hard minimum of $363/hour and doesn't go lower.

• Pat uses a day rate model - around $1,200 to $1,500/day. For individual tax returns, he’s still charging $150–$220 but said he’s starting to realise that’s too low for the value provided.

• Sam (the original poster) charges $180/hour and $180 per return. By the end of the discussion, he was replying to every comment with the same conclusion: “Time for an increase.”

That last line stuck with me because it's what most of us are thinking but don’t always act on.

Here’s the reality: if you’re still charging $180, you’re behind

You don’t need to be the most expensive in the market. But you do need to be sustainable.

Many firm owners are charging rates that haven’t moved in 3-5 years. Meanwhile:

• Wages have gone up.

• Software subscriptions keep climbing.

• Clients expect faster turnarounds, better advice, and more tech.

• Your own living costs have increased.

And let’s not forget, the compliance burden hasn’t gotten any lighter. You’re responsible for spotting risks, protecting clients from penalties, and helping them navigate increasingly complex legislation.

That work deserves fair pay. If your pricing hasn't gone up since 2020, you’re effectively earning less every year.

So what should you be charging in 2025?

Here’s a practical benchmark, based on where the market’s at right now.

For Individual Tax Returns (ITRs):

• Entry-level / low end: $220

• Standard / most common: $250–$300

• Complex returns: $350–$400+

Many firms also charge a higher fee for more urgent or complex lodgements, and rightly so.

For Hourly Work:

• Absolute minimum: $250/hour

• Owner-level pricing range: $300–$400/hour

• Top-tier consulting: $400–$500+/hour (especially for niche advisory)

And here’s the truth: if you’re still charging by the hour, that might be your first problem.

Pro tip: Hourly billing rewards inefficiency. Fixed-fee and value-based pricing encourage better scoping, clearer deliverables, and higher margins. If you’re ready to ditch the billable hour, check out Effective Pricing - it’s built specifically for accountants and helps you roll out value-based pricing without the mental gymnastics.

But what if I lose clients?

This came up a lot in the comments and it's a fair concern, but let’s flip the narrative.

If you raise your prices and lose the clients who only care about price, is that really a loss?

Here’s what often happens instead:

• You make the same or more revenue with fewer clients.

• You free up capacity to focus on higher-value clients.

• You reduce stress and increase profit.

Losing a handful of low-fee clients can actually be the best thing that happens to your firm.

And let’s not pretend clients don’t expect price increases. Clients get price increases from their lawyers, their mechanics and their childcare providers - they understand that things cost more over time. You’re running a business, not a charity.

What’s really holding you back

For most people, the fear isn’t just about losing clients , it’s about not believing in the value of what they do.

And that’s a mindset issue.

If you’re struggling to raise prices, ask yourself:

• Do I clearly communicate the value I provide?

• Do I back myself in client conversations?

• Have I packaged my services in a way that’s easy to understand?

• Am I comparing myself to the wrong firms (like offshore or low-quality operators)?

Once you get clarity on your offer and the outcomes you deliver, pricing becomes easier.

Final thought: You deserve to be paid properly

If you’ve made it this far, chances are something in this post hit a nerve.

Maybe you’ve been holding off on a price increase for fear of backlash. Maybe you’ve been meaning to review your pricing for months but haven’t prioritised it.

Here’s your nudge.

You don’t need to do it all at once. But you do need to start.

• Review your ITR pricing.

• Review your hourly or fixed-fee rates.

• Introduce minimum fees.

• Drop clients that aren’t viable.

• Move toward value-based pricing.

Every other professional industry has done it. There’s no reason accounting should be stuck five years in the past.

You’re the expert. You reduce risk. You give clarity. You keep clients compliant and out of trouble.That has value, real value, and your pricing should reflect it.

Want more practical pricing content? Subscribe to The Firm for unfiltered insights from real accountants in the trenches.

Or if you’re ready to roll out value-based pricing in your firm, check out Effective Pricing - it’ll save you hours of second-guessing and help you price with confidence.