MS in Taxation | Accounting.com (2024)

A master's in taxation can prepare you for an exciting career in strategic tax planning, corporate tax management, or international taxation consulting. This 30-plus-credit degree takes 1-2 years to complete. As a taxation student, you may take courses in tax accounting, tax procedure, and tax law.

Unlike a broad-based master's in accounting, a taxation degree can put you on a specialized career path managing government or corporate tax offices. According to Payscale data accessed in May of 2023, professionals with a master's in taxation earn an average annual base salary of $93,000.

More and more professionals are earning master's degrees, and according to the National Center for Education Statistics (NCES), business is their top choice. If you want to join the almost 200,000 people who receive a master's degree each year, explore this guide to learn about taxation degrees and see a ranking of top programs in the field.

Best Master's in Taxation Programs

What to Expect From Master of Taxation Programs

A master's in taxation focuses on the key concepts and practices of tax law, analytics, and research. This program emphasizes real-world taxation procedures and strategies for individuals, corporations, and partnerships.

Most tax-related master's degree programs consist of 30-33 credits. Taking 15 credits per semester, full-time students may be able to complete their curricula in one year, while at six credits per semester, part-time students could need two years.

Courses may include tax research methodology, partnership taxation, ethics in business, or tax law and policy. Some degrees conclude with a capstone experience where students do in-depth research and analysis.

Graduate schools typically allow students to transfer only a few courses into their program. If you have master's-level credits in the discipline from an accredited school, talk to your admissions counselor about transfer options.

Degree, Concentration, and Format Options

Schools offer many variations on a taxation degree, including the MS in taxation, MAcc in taxation, MS in accounting with a taxation concentration, MBA with a taxation concentration, and LL.M. in tax law.

• MS in Taxation: A master of science in taxation emphasizes general accounting practices and procedures but with an emphasis on U.S. tax regulations and codes. Graduates may pursue certification as a CPA or work in tax advising, tax accounting, or tax management.
• MAcc in Taxation: Assuming an undergraduate majors in business or accounting, this degree emphasizes the technical and critical thinking skills required for a career in federal tax management.
• MS in Accounting With Taxation Concentration: Focused on preparing students for the CPA exam, this degree emphasizes financial theory and ethics as well as tax research and tax law. Graduates may work as accountants, analysts, or consultants.
• MBA With Taxation Concentration: A management-centered degree, the MBA in taxation blends the best of broad business knowledge with the technical aspects of taxation. Graduates are prepared to make business decisions in light of potential tax consequences.
• LL.M. in Tax Law: Open to people who already hold a JD, the LL.M. in tax law offers expertise in the complexities of tax issues, including tax risk, tax pricing, and international tax treaties.

Some colleges offer a master's in taxation online or in a hybrid format. Online students should look at whether their program offers synchronous coursework, where the class meets together online, or asynchronous courses, where students complete their work on their own time.

Should You Get a Taxation Master's or a General Accounting Master's?

Taxation is a subsector of accounting. Consequently, degrees in these two subjects tend to overlap. However, master of taxation programs offer their own distinctive focus and prepare students for specific kinds of accounting careers. When would you want to pursue a taxation degree instead of an accounting degree?

Both programs require a bachelor's degree for admission. Both demand 1-2 years of study. And both require strong accounting and business skills. The difference is in the emphasis and the outcomes.

Do you plan to serve in a broad-based accounting leadership role, such as a corporate finance director or chief financial officer? If so, you probably want an accounting degree.

Do you plan to work as an IRS agent, tax accountant, or financial analyst? You would probably benefit from a taxation degree.

Admissions Process

Each university sets its own admissions requirements and procedures, but the following requirements and prerequisites are generally expected:

• Bachelor's degree from an accredited college or university
• LL.M. programs generally require a JD
• GPA of 3.0-3.25
• GMAT minimum scores (may be waived for applicants who meet minimum GPA standards, hold a CPA license, or have a master's degree in a related field)
• Completion of certain undergraduate courses such as intermediate accounting I and II, taxation, auditing, finance, and economics

Some schools may also require letters of reference, professional experience, or a resume as part of the application package.

Popular Taxation Graduate Courses

Each school creates its own curriculum, offering its own distinct variety of courses. Often, these courses include a core of accounting or taxation classes, a series of concentration courses in taxation, and a few electives. Many programs incorporate an internship and a final project or master's thesis.

• International Taxation: Students explore the fundamentals of international taxation. This course focuses on the taxation of U.S. source income for non-U.S. residents and the taxation of foreign source income for U.S. residents and citizens. Students must complete a fundamentals of accounting course as a prerequisite.
• Tax Research and Professional Practice: In this course, students review court cases, federal regulations, and the Internal Revenue Code. They emphasize the ethical responsibilities, roles, and regulations of tax professionals before the IRS. Topics include CPA review, tax practice strategies, and IRS examination of returns.
• Advanced Tax S-Corps and Partnerships: Class participants explore the fundamentals of federal income taxation as they apply to shareholders, partnerships, and pass-through corporations. The course focuses on the organization and capital structure of the S-Corps or partnership. Topics include stock redemptions, taxable and tax-free mergers, and dividends and other distributions.
• Wealth, Transfers, Trusts, and Estates: In this course, learners engage in the study of the gift, estate, and income taxes as they affect the transfer and accumulation of wealth through lifetime transfers or estates. Topics include a review of trusts along with other estate-planning tools and techniques to help individuals achieve their financial goals.

How Much Do Taxation Master's Programs Cost?

According to NCES, the average master's degree cost an average of $19,749 per year as of 2020-2021. However, NCES data also shows that public institutions cost just $12,394 annually. Clearly, several variables affect total cost.

In-state tuition is just one such cost variable. Other factors that affect the price include the school's prestige, whether it is a nonprofit or for-profit institution, and whether the program is available online or in person. Besides tuition costs, books, fees, and living expenses can add up quickly.

To cover these costs, many students take advantage of financial aid options such as competitive scholarships, private grants, or corporate educational reimbursem*nts. Check out the links below for more information about these and other financial resources.

Should You Get Your Degree Online?

According to NCES data, 59% of students at postsecondary institutions enrolled in at least one online course in the fall of 2021. Distance learning options are popular when they are convenient, accredited, and easy to access.

Some students, however, prefer the structure, support, and engagement of a face-to-face classroom experience. If you are one of these learners, you may want to explore evening classes, weekend courses, or synchronous online programs.

Taxation Jobs and Salaries

A master of taxation can prepare graduates for leading careers in tax accounting. According to Payscale, this degree can help secure a position as a tax accountant, tax director, senior tax manager, senior tax analyst, or chief financial officer. These jobs can pay more than $200,000 a year.

As a member of the business and financial sector, tax professionals are part of a growing collection of professions. The BLS projects that this sector will add 715,000 new jobs between 2021 and 2031, a growth rate of 7%.

Selecting the Right MS in Taxation Program

Many considerations go into selecting the right master's program. Consider the following key factors for choosing programs:

• Accreditation: Only consider schools that hold institutional accreditation, but remember that many top business schools also hold programmatic accreditation with the Association to Advance Collegiate Schools of Business International or another accrediting agency.
• Admission: Some schools may decline your application or require you to take additional coursework, earn a higher score on an admission test, or gain more real-world experience.
• Staff Credentials and Diversity: Consider how many professors hold a terminal degree and how much experience they have in business and academia. Also, look at the faculty's age, race, gender, sex, and other diversity factors.
• Alumni Network: A robust alumni network can help you gain a foothold in local professional associations and may provide a boost in your job search.
• Future education opportunities: Do you plan to pursue a Ph.D., JD, or other terminal degree? If so, make sure the master's program you select positions you as a top candidate for that degree.

See our data-derived list of the best master's in taxation programs below.

Common Questions About Taxation Master's Degrees

What is a master's in taxation called?

A master's in taxation could be called an MS in taxation, an MS in accounting with a focus in taxation, an MAcc with a concentration in taxation, or an LL.M. in taxation. Each of these degrees has a different emphasis and structure.

How many years is a master's in taxation?

Most master's in taxation programs take two years to complete. However, accelerated or bachelor's-to-master's programs might just require one year for graduate work.

Should I get a master's in accounting or taxation?

If you plan to work as an accountant, auditor, or financial consultant, a master's in accounting may be best. On the other hand, if you plan to be a tax director, tax accountant, or tax manager, you could find a master's in taxation is a better choice.

Is a master's in taxation worth it?

According to Payscale data accessed in May of 2023, people with a master's in taxation earn an average base salary of $93,000 a year. The average cost of graduate tuition is $19,749 per year, so this degree offers an excellent return on investment.