Some sources predict that 100% of basic tax preparation could be handled by AI software by 2030. This means jobs focused solely on straightforward tax filing and data entry are likely to be greatly reduced or eliminated.
Some insist AI will transform the tax preparation industry by automating many routine, repetitive, and time-consuming tasks. This includes data entry, document scanning, categorizing expenses, and even generating draft tax returns. Even now, AI systems can process complex tax regulations, flag potential errors, and offer predictive insights for tax planning. As a result, the efficiency, accuracy, and speed of tax preparation have increased dramatically, with many firms reporting a 75–90% reduction in time spent on administrative work.
However, while some foresee AI automation will reduce the need for manual tax preparation, they assert it will not eliminate the need for tax professionals altogether. Instead, the profession is expected to shift toward higher-value services such as advisory, strategic planning, and client relationship management. AI will free up professionals to review and validate AI-generated tax returns, fix incorrect outputs, interpret complex tax codes, ensure compliance with evolving regulations, and focus on complex situations where clients need advice.
The consensus among experts is that AI will transform, rather than eliminate, the tax preparation profession. Professionals who adapt by developing skills in advisory services, technology, and client communication will remain in demand. As a result, there will be increased demand for AI specialists, data analysts, and professionals skilled in leveraging AI tools within tax practices.
Firms that integrate AI into their workflows will be more efficient, accurate, and competitive, allowing them to offer more personalized and strategic services.
Conclusion
By 2030, AI will likely eliminate most basic, routine tax preparation jobs and significantly reduce the number of roles focused solely on manual tax filing. However, it will not fully eliminate the profession. Instead, tax professionals will transition toward advisory, strategic, and client-facing roles that leverage uniquely human skills. The future of tax preparation will be a hybrid of AI-driven automation and human expertise, with those who adapt to the new landscape best positioned to succeed.
If you’re an entry or mid-level tax person, sharpen your skills now because the administrative, day-to-day grunt work is going away.