How to become a tax preparer
Do you need a license to prepare taxes? In most states, no. See what your state requires, what it costs, and how long it takes.
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What it takes to become a tax preparer
Anyone who prepares federal tax returns for pay needs a Preparer Tax Identification Number (PTIN) from the IRS. That is the only federal requirement. There is no national license, no degree requirement, and no federal exam. A PTIN costs $18.75 for 2026, you apply online, and it takes about 15 minutes.
Five states add their own rules on top: California, Maryland, New York, Oregon, and Connecticut. Each one requires you to register with the state, and most require a qualifying education course or an exam before you can prepare returns. Anywhere else, your PTIN is all you legally need to start. Everything past that point, like the IRS Annual Filing Season Program or the Enrolled Agent credential, builds your credibility, not your permission.
Fees and requirements last verified October 2026.
Federal
PTIN, $18.75, about 15 minutes online
Your state
CA, MD, NY, OR, and CT add their own registration
Everything else
Optional: AFSP or the Enrolled Agent credential
Find your state requirements
45 states have no preparer requirement of their own. If you live and work in one of them, your PTIN gets you started. If you prepare returns in one of the five states below, pick yours for the full requirements, fees, and deadlines.
The four steps
1
Check your state requirement
Where you prepare returns decides what you need. Five states regulate tax preparers: California, Maryland, New York, Oregon, and Connecticut. If you work in one of them, that state's rules come first, and some have to be finished before you take a paying client. California, for example, requires your 60-hour course, a bond, and CTEC registration before you prepare a single return for pay.
In every other state, there is no state license to get. You can go straight to your PTIN.
Not sure which rules apply to you? Look at where your clients file, too. Connecticut requires a permit once you prepare more than 10 Connecticut returns for pay, even if your office is in another state.
Find your state requirements2
Get your PTIN
Every paid preparer needs a Preparer Tax Identification Number, and it goes on every return you sign. You apply through the IRS Tax Professional PTIN system. For 2026 the fee is $18.75, it is non-refundable, and the online application takes about 15 minutes. Paper Form W-12 also works, but expect about six weeks of processing.
The PTIN system now signs you in through ID.me, so have a government-issued photo ID ready before you start.
Your PTIN expires December 31 every year. Renewal opens in mid-October, so set a reminder.
Apply for your PTIN on IRS.gov3
Take your course
Your course depends on your state. California requires 60 hours of qualifying education from a CTEC approved provider: 45 hours federal and 15 hours California. You then have 18 months to register with CTEC. Oregon requires an 80-hour board-approved course before you sit for the state exam. Maryland requires you to pass the state exam with a score of 70% or higher.
New York and Connecticut work differently. New York commercial preparers complete free state continuing education, and Connecticut asks for an AFSP Record of Completion with your permit application.
Everywhere else, we recommend the IRS Annual Filing Season Program (AFSP). It is voluntary, but it puts your name in the IRS public directory of preparers and gives you limited rights to represent the clients whose returns you prepared. When a family is deciding who to trust with their refund, that listing matters.
Choose your course4
Apply for your EFIN
If you expect to file 11 or more individual returns in a year, the IRS requires you to e-file them, and e-filing takes an Electronic Filing Identification Number.
First, create an IRS e-Services account. Sign-in and identity checks now run through ID.me. Then complete the e-file application online. Unless you are an attorney, CPA, or enrolled agent, you will be fingerprinted electronically: schedule your appointment through the link on your e-file application summary page. The IRS no longer accepts paper fingerprint cards.
The application is free, but approval can take up to 45 days. Apply well before you plan to file.
Start your EFIN application on IRS.govWhat it costs
How much does it cost to become a tax preparer? For most new preparers, the total is a course plus an $18.75 PTIN. State fees apply only in the five regulated states, and the bond applies only in California.
| Requirement | Cost |
|---|---|
| PTIN | $18.75, non-refundable |
| Qualifying education course | from $345 |
| State registration | $33 to $100 depending on state |
| Tax preparer bond (CA only) | Roughly $25 to $50 per year |
| EFIN application | Free |
| Tax software | Varies |
How long it takes
The step that takes longest is usually not the course. It is the EFIN. The IRS can take up to 45 days to approve your e-file application, and you cannot e-file client returns until it does. If you want to file when the season opens in late January, have your application in by early December.
PTIN
About 15 minutes online
Your course
60 hours in California, 80 in Oregon, at your own pace or live
EFIN
Up to 45 days for IRS approval
Estimate your earning potential
What could tax season look like for you?
Move the sliders to see how your tax business could grow. Every office is different, so use this as your starting point.
National average: $236 for a basic 1040, based on publicly available national averages. Fees vary by state, city and experience.
Your estimated season revenue
$23,600
That’s about 7 returns a week during a 15-week tax season.
Growth applies to clients only. Your fee stays the same in every year shown.
No accounting background? You don’t need one to get started.
- Work from home or in an office
- Set your own fees
- Serve your community in English and Spanish
- Grow every year with returning clients
40
IRS · CTEC · NASBA approved
40 years training tax professionals in English and Spanish, with more than 522 trainers nationwide. Find an instructor near you.
This calculator shows estimated gross revenue for illustration only and is not a guarantee of income. Actual fees and results vary by state, county, return complexity, experience and business costs. The default fee is based on publicly available national averages.
Choose your course
Which course is right for you? If you prepare returns in California, you need the CTEC 60 Hour course. Everywhere else, the Annual Filing Season Program is the best place to start. Our courses are IRS approved, CTEC approved, and NASBA registered, and many come in English, Spanish, and bilingual formats.
Browse beginner courses by state
Frequently asked questions
Do I need a license to prepare taxes?
In most states, no. Federally, you need a PTIN from the IRS, which costs $18.75 for 2026. Only five states add their own requirements: California, Maryland, New York, Oregon, and Connecticut.
Is there a tax preparer certification?
There is no single national certification. Federally, you need a PTIN. The IRS recognizes the Annual Filing Season Program Record of Completion and the Enrolled Agent credential, and five states add their own registration or license.
How much does it cost to become a tax preparer?
Plan on an $18.75 PTIN plus your course, which starts at $345 with Latino Tax Pro. In the five regulated states, add a state fee of $33 to $100. In California, you also need a $5,000 bond, which typically costs $25 to $50 a year.
How long does it take to become a tax preparer?
The PTIN takes about 15 minutes online. Your course takes as long as its hours: 60 in California, 80 in Oregon. The EFIN is usually the slowest step, since IRS approval can take up to 45 days.
Can I become a tax preparer with no experience?
Yes. You do not need prior experience. A qualifying course teaches you the tax law and the forms, and in the five regulated states that course is part of the requirement.
Do I need a college degree?
No. No federal or state rule requires a college degree to prepare tax returns for pay.
What is the difference between a PTIN and an EFIN?
Your PTIN identifies you as a paid preparer and goes on every return you sign. Your EFIN authorizes you or your firm to e-file with the IRS. You need a PTIN to prepare returns for pay, and an EFIN to e-file them.
Is the Annual Filing Season Program required?
Not federally. The AFSP is voluntary, but it lists you in the IRS public directory of preparers and gives you limited representation rights. Connecticut requires an AFSP Record of Completion for its preparer permit.
Can I take the course in Spanish?
Yes. Latino Tax Pro courses are available in English, Spanish, and bilingual formats. Call or text (866) 936-2587 and our bilingual staff will help you choose.
How do I start a tax preparation business?
Start with the same four steps: check your state, get your PTIN, take your course, and apply for your EFIN. From there, you will need professional tax software and any business license your city or county requires.
Ready to start?
Check your state, get your PTIN, take your course, and apply for your EFIN. We will help you with every step, in English or Spanish.