Tax Management Market Report 2025

The tax management market size has grown rapidly in recent years. It will grow from $23.39 billion in 2024 to $26.31 billion in 2025 at a compound annual growth rate (CAGR) of 12.5%. The growth in the historic period can be attributed to strong economic growth in emerging markets, the rise in disposable income, the increasing complexity of tax codes, and the increase in digital financial transactions.

The tax management market size is expected to see rapid growth in the next few years. It will grow to $41.78 billion in 2029 at a compound annual growth rate (CAGR) of 12.3%. The growth in the forecast period can be attributed to the increasing government support, rapid urbanization, the increasing population, the increase in adoption of digital channels, and the increase in adoption of cloud-based approaches. Major trends in the forecast period include increasing investments in artificial intelligence, focusing on digital business solutions, investing in innovative technologies, focusing on cloud-based tax return solutions to improve workflow, and focusing on developing client self-service platforms.

The growth of the tax management market has been greatly influenced by the escalating complexity of tax codes across various countries. Tax management is crucial in ensuring compliance with these intricate tax laws, demanding constant updates and a deep understanding of diverse provisions to ensure organizational adherence. The National Taxpayers Union Foundation's report highlighted the increasing burden of tax code complexity. In 2022, compliance with tax codes consumed an estimated 6.55 billion hours for tasks such as recordkeeping, learning about laws, filling forms, and submitting information to the IRS. The cost of compliance in 2022 amounted to $364 billion, marking a $25 billion increase (7.4 percent) from the previous year. Thus, the mounting complexity of tax codes is poised to fuel the demand for tax management products and services.

The growing adoption of cloud-based approaches is expected to drive the growth of the tax management market. Cloud services encompass infrastructure and application resources provided to users via the Internet and hosted by third-party providers. Cloud-based tax software reduces costs by eliminating the need for businesses to invest in and maintain expensive hardware and software, allowing for more effective allocation of resources. For instance, in December 2023, the European Union reported a 4.2 percentage point increase in the number of EU businesses purchasing cloud computing services in 2023 compared to 2021. Therefore, the rise in cloud-based solutions is fueling growth in the tax management market.

Technological advancements stand out as a pivotal trend shaping the tax management market. Major players in tax management are directing their focus towards technological innovations, aiming to gain a competitive advantage in the industry. An illustrative instance is J.P. Morgan's recent introduction in May 2022 of the Tax-Smart Separately Managed Account (SMA) Platform. This platform empowers advisors to construct tailored portfolios, leveraging J.P. Morgan's investment expertise combined with 55ip's tax-smart technology, thereby facilitating higher after-tax returns for their clients.

Companies operating in the tax management sphere are increasingly leveraging artificial intelligence (AI) to fortify their market position. AI and analytics tools serve as instrumental resources for tax departments, enabling them to extract comprehensive insights from substantial volumes of data. These tools assist business leaders in identifying potential issues and capitalizing on emerging opportunities. By analyzing global compliance data, AI aids in forecasting trends, identifying irregularities, and mitigating global risks. For instance, Taxaroo, a forward-thinking tax technology firm based in the United States, launched ZeroTax.ai in March 2023, an AI-driven tax preparation service known as TaxGPT. This innovative platform simplifies tax processes for individuals and small business owners by instantly providing free solutions to their tax-related queries. Additionally, it offers an optional tax expert assessment, enhancing its appeal to Taxaroo customers who use its tax and accounting practice management software, thereby augmenting value for tax enterprises and CPA (certified public accountants) firms.

In May 2022, Altus Group Limited, a Canada-based Intelligence as a Service provider, successfully acquired Rethink Solutions Inc., the developer of the itamlink property tax management software, for an undisclosed amount. This strategic acquisition brings in a complementary software offering, technical talent with expertise in property taxes, and establishes strong customer relationships for Altus Group. Rethink Solutions Inc. is a U.S.-based developer specializing in property tax and real estate expense management software.

Major companies operating in the tax management market include Intuit, Wolters Kluwer, Thomson Reuters, SAP,Avantax, Inc, Vertex Inc, Avalara, Sovos Compliance, Automatic Data Processing Inc, Meru Accounting, Whiz Consulting Private Limited, IMC Group, Savage & Palmer, Shoolin Consultancy, Nimblefincorp, Setindiabiz, BBNC, Valuenode, Invensis Inc, Sapience Pro, Zhongrui Yuehua, GFC Consulting Co Ltd Shanghai, Guangdong SILIQUE Group Co., Ltd, AVASK Accounting and Business Consultants Ltd, UTV Motion Pictures limited., Eros International, Dharma Productions, Red Chilies Entertainment, Makesworth Accountants, CJM Associates, The Accountancy Partnership, Salient Accounting & Finance, Burnt Orange Accounting, BBK Partnership, TaxAssist Accountants, Crowe Poland, PwC Poland, Konsu, Dezan Shira & Associates, Sberbank, Société Générale TKB Investment Partners, Alfa Capital, UFG Asset Management, PZU Group, Aviva Investors Poland, H&R Block, Ernst & Young, KPMG International Limited, Zeni AI, TOTVS, TPC Group, Al Tamimi & Company, RSM UAE, Baker Tilly South Africa, Mazars.

North America was the largest region in the tax management market in 2024. The regions covered in the tax management market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the tax management market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

Tax management involves the strategic handling of finances to fulfill tax obligations and ensure compliance with the provisions of the Income Tax Act and related rules. This encompasses activities such as timely filing of tax returns, conducting audits, and adhering to tax deduction requirements.

The primary components of tax management include software and services. Tax management software is utilized to calculate, process, and report global taxes in accordance with regulations. This software serves as a comprehensive solution, aiding bookkeepers, accounting firms, and certified public accountants (CPAs) in managing various financial workflows, including invoices, payments, electronic signatures, emails, contacts, and other data on a unified platform. Tax management solutions are deployed on both cloud and on-premises platforms, catering to the needs of small and medium-sized enterprises (SMEs) as well as large enterprises. These solutions find application across various industries, including banking, financial services, and insurance (BFSI), information technology (IT) and telecom, manufacturing, energy and utilities, retail, healthcare and life sciences, media and entertainment, and others.

The tax management market research report is one of a series of new reports that provides tax management market statistics, including tax management industry global market size, regional shares, competitors with a tax management market share, detailed tax management market segments, market trends and opportunities, and any further data you may need to thrive in the tax management industry. This tax management market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The tax management market consists of revenues earned by entities by providing accounting services, corporate income tax services, payroll services, VAT compliance services, and reporting services. The market value includes the value of related goods sold by the service provider or included within the service offering. The tax management market also includes sales of solutions such as income-tax compliance solutions. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 3-5 business days.