How to Become a CTEC-Registered Tax Preparer in California
This California tax preparer license guide is for informational purposes only. SuretyBonds.com does not regulate or manage licensing for tax preparers in California. Contact the California Tax Education Council (CTEC) for the state's latest official tax preparer license requirements.
Interested in becoming a California tax preparer? You’re in the right place.
The California Tax Education Council (CTEC) requires tax preparers working in the state to fulfill several registration requirements, including completing an educational course and filing a surety bond.
This guide will outline the step-by-step process for becoming a CRTP and answer more of your questions about the California tax preparer registration process.
What Is the California Tax Education Council (CTEC)?
The California Tax Education Council (CTEC) is a non-profit corporation that registers tax preparers for residents of California. It was created by the California legislature to promote competent tax preparation.
CTEC also approves tax education providers required for the registration process, and maintains and distributes a list of those approved providers.
What Does a Tax Preparer Do?
A CRTP, or California Registered Tax Preparer, helps businesses and individuals complete and file income tax returns. Once you become a tax preparer in California, you’ll perform the following key tasks:
- Gather Financial Information: Meeting with clients to collect financial records and understand their financial situations
- Analyze Records: Reviewing financial documents to ensure data accuracy and compliance with state, federal and local laws
- Maximize Returns: Using tax law knowledge to calculate taxes and maximize the legal tax benefits
- Complete Forms: Filling out tax forms accurately and submitting them to the appropriate agencies
- Provide Tax Advice: Explaining tax concepts to clients and offering strategic advice for tax planning
You’ll also need to work with utmost confidentiality and build professional relationships to maintain tax clients year over year.
Who Is Exempt From the CTEC Registration Requirement?
Most California tax preparers must be registered with CTEC annually if they assist with state or federal income tax returns and assume final responsibility for these returns for a fee or other consideration. However, not all people who help prepare and file taxes need to register with CTEC.
Types of Professionals Required to Register
- Inactive CPA or a CPA who is not in California and prepares income tax returns
- Employees of a CTEC tax preparer who sign income tax returns
- Nonexempt tax preparer who takes client data regarding income tax and enters it electronically to prepare a return
- Nonexempt tax preparer who receives a fee for bundling services including the preparation of an income tax return
Types of Professionals Exempt from Registration
- Certified public accountants (CPAs)
- Enrolled agents (EAs)
- Attorneys who are members of the California State Bar
- Other specified banking or trust officials
These groups can provide tax assistance through their profession without registering as a tax preparer. Find more exemption details on the California Franchise Tax Board website.
How to Register as a Tax Preparer in California
If you are not exempt, continue reading to learn how to become a tax preparer in California (a CRTP) in just five steps.
Step 1: Complete 60-hr qualifying education course
First, register for and complete a 60-hour tax preparer education course from a CTEC-approved provider. This must include 45 hours of federal tax law and 15 hours of California tax law.
You’ll need to apply for your tax preparer license within 18 months of passing the course.
Step 2: Get Preparer Tax Identification Number (PTIN)
Next, obtain a preparer tax identification number (PTIN) from the IRS. This is a federal requirement. You can apply for a PTIN online in about 15 minutes through the IRS website. Just submit your information and pay the $30.75 fee.
Step 3: Purchase a surety bond
All California tax preparers need to be bonded. Purchase a $5,000 surety bond from an online surety provider or insurance agent. Upload the bond to your CTEC account on the same day as the bond term’s start date.
Step 4: Complete a background check
All California tax preparers must pass a background check and submit electronic fingerprints through LiveScan.
- Access the required forms in your CTEC account and find approved LiveScan locations near you.
- Complete the background questionnaire. Report ANY offenses, regardless of their status or when they occurred.
- Visit a LiveScan location to process your fingerprints.
The CDOJ will send your background information to CTEC for review. Approval can take 2–8 weeks.
Step 5: Register with CTEC
After clearing the background check, you can apply for your California tax preparer license. Apply online through your CTEC account and pay the $33 registration fee and $100 application fee.
Once approved, you’ll receive your CRTP certificate of approval within 4-6 weeks.
Registration Requirements Checklist
Use the checklist below to ensure you have all the key steps completed before submitting your tax preparer registration.
| Requirement | Details |
|---|---|
| Education | Complete 60-hour QE course. |
| IRS PTIN | Obtain a Preparer Tax ID from the IRS. |
| Background Check | Submit LiveScan fingerprints and pass the criminal background check. |
| Surety Bond | File a $5,000 surety bond to protect clients. |
| CTEC Application | Submit the online registration application and pay fees. |
How Much Does It Cost to Become a CRTP in California?
The registration fees for tax preparers in California are quite low compared to many other professional licenses and registrations. CTEC charges a $33 annual registration fee plus a $2 processing fee for tax preparers.
As a new tax preparer, you’ll also pay a $102 application fee, $30.75 for your PTIN, $49 background check fee, and $55 for a 2-year surety bond. You’ll also need to pay for your pre-licensing education course — visit approved vendor websites for pricing.
Below, find the fees required to apply for your California tax preparer license.
| Fee Type | Amount |
|---|---|
| Pre-Licensing Education | Varies |
| LiveScan Background Check | $49 |
| Application & Processing Fee | $102 |
| PTIN Fee | $30.75 |
| Registration & Processing Fee | $35 |
| Surety Bond Premium | $55 for a 2-year term |
In total, you will pay about $275 in fees to become a tax preparer in California, plus the price of the qualifying education course.
CTEC Annual Renewal Requirements
To keep your California tax preparer registration active, you'll need to renew annually with CTEC by October 31 and stay up-to-date with continuing education.
- Complete 20 hours of CE from a CTEC-approved vendor (see below)
- Pay the $33 renewal registration fee by October 31 ($55 for late renewals)
- Renew PTIN with IRS by December 31
- Renew surety bond every 2–4 years (based on term length)
If you don't renew your license by the late deadline of January 15th, your license will expire and certain penalties will be enforced.
What Are the CE Requirements for California Tax Preparers?
You must take at least 20 hours of continuing education (CE) from a CTEC-approved provider each year to maintain your license. The course needs to meet certain requirements and include the following topics:
- 10 hours of federal tax law
- 5 hours of California tax law
- 3 hours of federal tax update
- 2 hours of ethics
Use the CTEC education provider locator tool to find both qualifying and continuing education providers near you or online.
More CRTP Application FAQs
Where can I buy my tax preparer bond?
SuretyBonds.com is the top online broker of California tax preparer bonds. You can get your bond instantly online with no fees or application process. There are two, three, or four-year bond term options:
- 2-year tax preparer bonds cost $55
- 3-year tax preparer bonds cost $70
- 4-year tax preparer bonds cost $80
Click the link above to buy online now, or call 1(800) 308-4358 to work directly with a licensed surety expert.
How much do tax preparers make in California?
With minimal upfront investment, becoming a tax preparer as either a side hustle or a full-time career can be a lucrative income opportunity. For some, it is a great entry point into the accounting industry.
Tax preparer salaries in California typically range from $36,600 to $96,000. According to Indeed data, the average salary for California tax preparers is $56,075.
Your exact income potential will vary widely depending on the city you work in, whether you work for an employer or are self-employed, and your years of experience in the field.
What skills do you need to become a tax preparer?
Do you have what it takes to be a successful tax preparer? Employers and clients will look for the skills and qualities below from tax preparers:
- Knowledge of tax laws
- Customer service
- Verbal communication
- Basic mathematical skills
- Basic accounting skills
- Attention to detail
- Financial literacy
- Proficiency with accounting softwares
Many of these skills are transferable from other lines of work. The more technical skills can also be learned in the 60-hour prelicensing course.
The only formal education requirements for California tax preparers is the prelicensing course. However, it is beneficial to have a college degree when applying to work as a tax preparer for an employer.
How long does it take to become a tax preparer?
In total, it takes about 8 to 20 weeks to become a California tax preparer. The majority of this time is simply spent waiting for background check clearance and CTEC application processing.
You’ll need to complete the 60-hour course, which can be completed in as little as 2 weeks. Then, the background check typically takes 2 weeks but can take up to 8 weeks. Finally, CTEC takes 4–8 weeks to review applications.
How does regulation for tax preparers in California differ from other states?
Maryland, New York, Oregon, and Connecticut also regulate tax preparers. Minnesota and Illinois have implemented a few regulations for tax preparers, but they are not as in-depth as the other states mentioned.
- Maryland imposes the mandatory education requirement and requires preparers to register after passing a state or IRS exam or bring proof of considerable experience preparing tax returns. Additionally, Maryland authorizes the state attorney general to obtain injunctive relief in the event a tax preparer does not abide by state requirements.
- New York has annual registration and continuing education requirements for its tax preparers.
- Oregon tax practitioners and consultants must pass a state exam and complete 30 hours of CE to maintain their license.
- Connecticut imposed increased regulation for tax preparers in 2017.
- Minnesota developed standards of conduct for tax preparers.
- Illinois initiated PTINs to identify fraudulent tax preparers.
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Last Updated: December 19, 2025
