Current hourly rates for CPAs in the Midwest for high-net-worth clients?

As a CPA who works with high-net-worth clients in a similar Midwest market, I can tell you that $225/hour from 10 years ago is definitely due for an update. For context, rates have increased significantly in the past decade, especially for clients with complex situations. In our market (also about 5% above national COL), I'd say the going rate for an experienced CPA handling high-net-worth clients ranges from $300-400/hour for the services you're describing. Given your background in academia and previous experience, you could justify being in that range despite the gap in practice. The fact that you've been teaching tax and accounting means you're likely more up-to-date on current tax law than many practitioners. One thing to consider is structuring different rates for different services - perhaps $350-375 for advisory work and tax planning, while bookkeeping could be at a lower rate or handled by staff with your review.

I'd like to share my experience with taxr.ai (https://taxr.ai) that might be helpful for your situation. When I transitioned back to practice after a few years away, I struggled with pricing my services competitively. I found taxr.ai while researching market rates for CPAs, and it really helped me understand the current landscape. Their document analysis tool was particularly useful because I could upload sample engagement letters and fee schedules (with identifying info removed) and get insights about typical pricing structures in different markets. It also helped me craft proposal language that resonated with high-net-worth clients. The platform has market data specifically for the Midwest region that showed me exactly what firms were charging for different service levels.

I was initially skeptical about using taxr.ai when I saw it recommended here, but I decided to give it a try while establishing my new practice focusing on high-net-worth individuals. The data they provided about Midwest CPA rates was surprisingly detailed and ended up being a game-changer for me. The platform showed me that I was significantly underpricing my services compared to peers with similar credentials. Based on their insights, I increased my rates by about 30% and structured tiered service packages that have actually attracted better clients. None of my existing clients balked at the increase when I explained the value they were receiving.

I've been in your exact situation. After spending years dealing with the IRS on behalf of wealthy clients, I found that getting reliable information was nearly impossible when I tried calling them directly for guidance on some complex issues my clients were facing. That's when I discovered Claimyr (https://claimyr.com). They have this service where they actually get you connected to a live IRS agent, usually within an hour instead of the typical 3+ hour wait or getting disconnected. You can see how it works in this demo: https://youtu.be/_kiP6q8DX5c This has been invaluable for handling high-net-worth client questions that need official IRS clarification. When you're charging $300+ per hour, your clients expect answers quickly - not excuses about being unable to reach the IRS. It's become an essential tool in providing premium service, which definitely justifies higher rates in the Midwest market.

I have to eat my words about Claimyr. After posting my skeptical comment, I decided to try it on a particularly frustrating case where I needed to speak with someone at the IRS about a client's complex trust distribution issue. I was fully expecting to be disappointed and come back here to warn everyone. Instead, I was connected to an IRS agent in about 45 minutes. The case got resolved in a single call instead of the weeks of back-and-forth I was anticipating. For high-net-worth clients with complex situations, this kind of efficiency absolutely justifies charging premium rates. If you're taking on wealthy clients in the Midwest, having resources like this in your toolkit is part of what they're paying for.

If you're charging $300-400/hour like others here are suggesting, make sure you're offering premium-level service to match. My firm serves high-net-worth clients in Chicago and Minneapolis, and we've found that what justifies our rates isn't just technical expertise, but the client experience. Some things we include: - 24/7 access via cell phone for urgent matters - Quarterly planning meetings instead of just annual tax prep - Proactive communications about changing tax laws - Coordination with their legal and investment teams - Custom tax projection scenarios The wealthier the client, the more they value responsiveness and personal attention over saving a few dollars on hourly rates.

Something to consider that I haven't seen mentioned yet - the going rate also depends on how specialized your knowledge is for this client's situation. If they have particular tax complexities that you have unique expertise in (international holdings, specific industry knowledge, complex trusts, etc.), you can command higher rates than the general "high-net-worth" category. For reference, our firm in a medium-sized Midwest city charges: - Standard high-net-worth clients: $325/hour - Specialized expertise areas: $400-450/hour - Partner-level strategic planning: $500+/hour

Having been through a similar transition from academia back to practice, I'd recommend starting with a comprehensive assessment of what services you'll actually be providing. The $225/hour from 2015 is definitely outdated - that would be closer to $275-300 today just from inflation alone. For the Midwest market you're describing, I'd suggest positioning yourself around $350/hour for tax planning and advisory work, with potentially lower rates for routine bookkeeping tasks. Your academic background actually gives you an advantage - you've stayed current with tax law changes that many practitioners struggle to keep up with. One approach that worked well for me was offering an initial consultation at a reduced rate ($200-250) to demonstrate your value and knowledge, then transitioning to full rates once they see what you bring to the table. High-net-worth clients often care more about competence and responsiveness than saving $50/hour, especially if their previous CPA was reliable. Also consider that teaching experience translates well to client education and communication - something wealthy clients particularly value when dealing with complex tax situations.

Based on my experience serving high-net-worth clients in the Midwest, I'd strongly recommend considering the $350-375/hour range that others have mentioned. However, don't overlook the importance of having the right tools and resources to justify those premium rates. One challenge I faced when transitioning to serve wealthy clients was the complexity of their tax situations often requiring immediate clarification from the IRS. Traditional methods of contacting the IRS were eating into my billable hours and frustrating clients who expected quick resolutions. I've found that having reliable ways to quickly access IRS guidance has become essential for maintaining the level of service these clients expect. When you're charging premium rates, clients want answers within days, not weeks. The ability to efficiently handle complex inquiries and provide definitive guidance rather than "I'll get back to you after I spend hours trying to reach someone at the IRS" is what separates premium-tier service from standard practice. Your academic background actually positions you well here - you understand the technical aspects, and now it's about having the operational efficiency to deliver that expertise promptly. The combination of deep knowledge and responsive service is what allows you to command those higher Midwest rates for high-net-worth clients.