1.1.5Segment

State & Local Tax (SALT)

Tax advisors specializing in state and local tax obligations including sales tax, property tax, and tax credit programs.

5
Verticals

Overview

State & Local Tax (SALT) advisors handle the tax obligations that sit below the federal level: sales and use tax, property tax, state income and franchise tax, unclaimed property, and credits and incentives. Multistate nexus — sharply expanded after the 2018 Wayfair decision authorized economic-nexus sales-tax collection — made this a structurally growing specialty.

Work blends recurring compliance (sales-tax return filing, often software-assisted) with higher-value advisory on nexus, audits, and incentive negotiation. It is a specialist discipline practiced inside CPA and law firms and at dedicated SALT boutiques, increasingly paired with tax-automation software.

Market snapshot

FragmentationFragmented

No discrete Census NAICS code — SALT services are embedded in CPA offices (541211) and tax-prep firms (541213) and are not separately sized by the Census Bureau.

Business model & economics

Revenue model
Recurring compliance filings plus project advisory and audit-defense fees
Recurring revenue
Moderate — sales-tax filings recur; advisory is project-based
EBITDA margin
20–30%
Capex intensity
Low
  • Post-Wayfair economic nexus permanently widened the compliance burden.
  • Tax-automation software (Avalara, Vertex) is both a partner and a substitute.
  • Credits-and-incentives work can be contingency-priced on realized savings.

M&A deal context

Moderate deal activity

Who’s acquiring

National & regional CPA firmsTax-technology companiesPE-backed tax advisory platforms

What’s driving deals

  • Wayfair-driven demand pulling SALT boutiques into national firms.
  • Convergence of tax software and advisory services.
  • Specialty credits and incentives growing with reshoring and clean-energy programs.

Verticals in this segment

  • 1.1.5.1Property Tax Consulting & Appeals

    Advisors contesting and reducing commercial property tax assessments.

  • 1.1.5.2Sales & Use Tax Compliance

    Firms managing multi-state sales tax registration, filing, and remittance.

  • 1.1.5.3SALT Advisory & Planning

    State and local tax strategists minimizing corporate tax across jurisdictions.

  • 1.1.5.4State Income Tax Compliance

    CPA practices managing state corporate income tax return preparation.

  • 1.1.5.5Tax Credits & Incentives Advisory

    Specialists identifying and documenting R&D, LIHTC, and other tax credits.

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