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Tax Preparation Services in Canada Industry Data and Analysis
Tax preparers in Canada have performed well in recent years because of the consistent need for external tax preparation work from many households and businesses. However, economic conditions have led to major revenue shifts. The lapse in COVID-19 pandemic-era aid constrained disposable income, putting downward pressure on revenue. Regardless, the economic recovery led to an increase in total employment, resulting in more individuals filing their tax returns, which ultimately contributed to revenue rises in 2021 and 2022. While the unemployment rate has recently risen, a large spike in the number of high-income households caused revenue to surge in 2023 and 2024, as these buyers typically use tax preparation services frequently, often because of their access to numerous deductions. At the same time, more providers are entering the market, which pushes concentration down and increases competition. New firms, lured by low entry barriers and rising demand from wealthier households, have helped drive establishment growth, faster hiring and higher total wages. Overall, revenue for tax preparation services companies in Canada has expanded at a CAGR of 2.9% over the past five years, reaching CA$1.8 billion in 2025. This includes a 1.8% drop in revenue in that year.
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What's included in this industry analysis
IBISWorld's research coverage on the Tax Preparation Services industry in Canada includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released December 2025.
About this industry
What's this industry report about?
The Tax Preparation Services industry in Canada operates under the NAICS industry code 54121dCA. Companies in this space provide tax return preparation services to individuals without also providing accounting, bookkeeping, billing or payroll process services. Although the offices of CPAs are excluded from this industry, basic knowledge of tax law and filing requirements is required. Related terms covered in the Tax Preparation Services industry in Canada include canadian revenue agency (cra), pre-authorized debt (pad) and netfile.
What's included in this industry?
Products and services covered in Tax Preparation Services industry in Canada include Client income and tax return preparation services, Business tax preparation services and Assisted software tax preparation services.
What companies are included in this industry?
Companies covered in the Tax Preparation Services industry in Canada include H&R Block Inc. and Intuit Inc.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Tax Preparation Services industry in Canada.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Tax Preparation Services industry in Canada.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Tax Preparation Services industry in Canada.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Tax Preparation Services industry in Canada. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Tax Preparation Services industry in Canada. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Tax Preparation Services industry in Canada. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Tax Preparation Services industry in Canada. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Tax Preparation Services industry in Canada.
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Frequently Asked Questions
What is the market size of the Tax Preparation Services industry in Canada in 2026?
The market size of the Tax Preparation Services industry in Canada is $1.8bn in 2026.
How many businesses are there in the Tax Preparation Services industry in Canada in 2025?
There are 4,371 businesses in the Tax Preparation Services industry in Canada, which has grown at a CAGR of 4.3 % between 2020 and 2025.
How may import tariffs affect the Tax Preparation Services industry in Canada?
The Tax Preparation Services industry in Canada is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Tax Preparation Services industry in Canada?
The Tax Preparation Services industry in Canada is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Tax Preparation Services industry in Canada grown or declined over the past 5 years?
The market size of the Tax Preparation Services industry in Canada has been growing at a CAGR of 2.5 % between 2020 and 2025.
What is the forecast growth of the Tax Preparation Services industry in Canada over the next 5 years?
Over the next five years, the Tax Preparation Services industry in Canada is expected to grow.
What are the biggest companies in the Tax Preparation Services industry in Canada?
The biggest companies operating in the Tax Preparation Services industry in Canada are H&R Block Inc. and Intuit Inc.
What does the Tax Preparation Services industry in Canada include?
Offering client income and tax return preparation services and Offering business tax preparation services are part of the Tax Preparation Services industry in Canada.
Which companies have the highest market share in the Tax Preparation Services industry in Canada?
The company holding the most market share in the Tax Preparation Services industry in Canada is H&R Block Inc..
How competitive is the Tax Preparation Services industry in Canada?
The level of competition is high and decreasing in the Tax Preparation Services industry in Canada.
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