Texas is one of the largest public accounting markets in the United States — and for professionals who want to build a career at a small or mid-sized firm rather than a national one, it's among the most rewarding places to do it. Four distinct metros, a deep bench of established independent firms, no state income tax, and a steady stream of businesses relocating into the state mean the mid-market here has genuine depth and genuine choice.
This guide is written for tax, audit, and accounting professionals considering a move within Texas or into it — with a focus on the local and regional firm market rather than the Big 4. Below is where the work is, what it pays, which firms to know, and the Texas-specific factors that matter, including a significant licensure change arriving in August 2026.
The Texas market: what drives it
Texas is better understood as four markets than one, and the client work at small and mid-sized firms differs meaningfully from what the national firms handle. A few forces shape the day-to-day:
- Closely-held and family-owned businesses. This is the backbone of small and mid-sized firm work across Texas — owner-managed companies needing tax planning, compilations and reviews, succession planning, and year-round advisory. It's the work that gives professionals at smaller firms direct client relationships far earlier than a national firm typically allows.
- Real estate and construction. Sustained population growth underwrites a large real estate and construction client base statewide. Partnership taxation, cost segregation, and percentage-of-completion accounting are common areas of depth at mid-sized Texas firms, and genuinely transferable expertise.
- Businesses relocating into Texas. The continued inflow of companies from other states creates multi-state and state-and-local tax complexity that lands squarely on mid-market firms — not just the largest ones. Multi-state experience is one of the more portable specializations a Texas professional can build.
- Energy — but less than you'd assume. Oil and gas defines Houston's reputation, and the largest energy engagements sit with the Big 4 and the biggest regional firms. At small and mid-sized firms the energy exposure is real but different: royalty owners, working-interest partnerships, smaller service companies, and family energy holdings. Useful to understand, but it isn't the whole Houston story and shouldn't dictate where you look.
What this means for candidates: at a small or mid-sized Texas firm, breadth tends to matter more than deep single-industry specialization. Professionals who can handle a closely-held business return, a construction client's percentage-of-completion questions, and a multi-state filing in the same week are the ones smaller firms compete hardest for — and they progress faster than they would in a narrower national-firm lane.
Key markets in Texas
Houston
The largest public accounting market in Texas, and one with a deep independent firm sector beneath the national names. For candidates targeting small and mid-sized firms, Houston offers strong local and regional practices serving closely-held businesses, real estate, healthcare, and the smaller end of the energy sector — royalty owners, working-interest partnerships, and family energy holdings rather than the major operators. Volume of roles is high at every level, and the sheer number of firms means real choice about culture and client mix.
Dallas-Fort Worth
Comparable in scale to Houston and more diversified in client base, which makes it arguably the strongest mid-market in the state. Fort Worth in particular has a well-established independent firm community with long-standing closely-held business relationships. The volume of companies relocating into DFW creates steady multi-state and state-and-local tax work at firms of every size — not just the largest. A good market for professionals who want variety rather than a single industry lane.
Austin
The fastest-growing market in Texas, and smaller firms here have grown alongside it. Mid-sized Austin firms serve a client base of owner-managed businesses, professional services, real estate, and smaller technology companies — the founders and early-stage businesses that national firms tend not to prioritize. Compensation pressure is the highest in the state because firms compete with in-house roles, which works in candidates' favor. The trade-off is the highest cost of living in Texas.
San Antonio
The most independent-firm-dominated of the four major markets, with comparatively little Big 4 presence — which means broader responsibility earlier for most professionals. Healthcare, not-for-profit, military-adjacent businesses, and closely-held companies make up the core client base. Compensation runs below Houston and DFW, but so does cost of living, and candidates consistently cite pace and quality of life as the reason they stay.
Texas salary guide: public accounting
Ranges below reflect base salary at small and mid-sized CPA firms in Texas — local and regional practices rather than Big 4 or the largest national firms. Major metro figures apply to Houston and Dallas-Fort Worth; secondary market figures apply to San Antonio, El Paso, and smaller Texas markets. Austin generally tracks close to the major metro range. Actual offers vary by firm size, client mix, and individual experience.
On comparing against Big 4 numbers: published salary guides usually reflect national and Big 4 pay, which sits above these ranges — often 10–20% higher at the Senior and Manager levels. The comparison is less lopsided than it looks. Smaller firms typically offer more predictable hours, earlier client ownership, a shorter and more visible path to partner, and less time lost to internal process. Candidates who move from a national firm to a strong mid-sized firm frequently take a modest base adjustment and recover it within a couple of years through faster progression.
An important Texas factor: Texas has no state income tax. A given salary in Houston or Dallas delivers meaningfully more take-home pay than the same figure in California, New York, or Illinois. When comparing a Texas offer against a coastal one, compare net rather than gross — the gap is usually far narrower than the headline numbers suggest, and often favors Texas.
Tax — Texas
| Level | Houston / DFW | Secondary Markets |
|---|---|---|
| Staff / Associate (0–2 yrs) | $58,000 – $74,000 | $52,000 – $67,000 |
| Senior Associate (2–4 yrs) | $74,000 – $98,000 | $67,000 – $88,000 |
| Supervisor / Asst. Manager | $92,000 – $118,000 | $84,000 – $106,000 |
| Manager | $105,000 – $138,000 | $96,000 – $125,000 |
| Senior Manager | $132,000 – $175,000 | $120,000 – $158,000 |
| Director / Principal | $160,000 – $215,000 | $145,000 – $190,000 |
| Partner | $200,000 – $450,000+ | $170,000 – $350,000+ |
Audit & Assurance — Texas
| Level | Houston / DFW | Secondary Markets |
|---|---|---|
| Staff / Associate (0–2 yrs) | $56,000 – $72,000 | $51,000 – $65,000 |
| Senior Associate (2–4 yrs) | $72,000 – $94,000 | $65,000 – $85,000 |
| Supervisor / Asst. Manager | $88,000 – $113,000 | $80,000 – $102,000 |
| Manager | $100,000 – $133,000 | $92,000 – $120,000 |
| Senior Manager | $128,000 – $168,000 | $115,000 – $152,000 |
| Director / Principal | $155,000 – $205,000 | $140,000 – $182,000 |
| Partner | $195,000 – $430,000+ | $165,000 – $330,000+ |
Professionals who combine technical depth with genuine client-facing ability sit at or above the top of these ranges, particularly at Supervisor level and above — that combination is what smaller firms find hardest to hire. Multi-state and partnership tax experience also pushes offers upward across all four markets.
Houston vs Dallas vs Austin: choosing your Texas market
Texas is unusual in offering several genuinely viable markets rather than one obvious destination. For candidates weighing a move — whether into Texas or between Texas cities — the metro shapes your client work and your progression more than the individual firm does. Here's how they compare for someone building a career at a small or mid-sized firm.
| Factor | Houston | Dallas-Fort Worth | Austin |
|---|---|---|---|
| Number of mid-sized firms | Highest | Very high | Growing, fewer |
| Typical client base | Closely-held, real estate, smaller energy | Closely-held, construction, multi-state | Owner-managed, professional services, early-stage tech |
| Partner-track visibility | Good | Good | Strongest — younger firms |
| Big 4 competition for talent | High | High | Moderate |
| Compensation level | Top of state | Top of state | Comparable, rising fastest |
| Cost of living | Lowest of the three | Moderate | Highest of the three |
| Best suited to | Breadth of choice | Variety of client work | Growth and early responsibility |
The practical read: Houston and Dallas-Fort Worth both offer a large number of established independent firms, which means genuine choice about culture, client mix, and hours — the things that actually determine whether you stay somewhere. Austin has fewer mid-sized firms in absolute terms, but they tend to be younger and growing, which often translates into faster responsibility and a clearer view of the partner track. San Antonio deserves consideration too: it has the least Big 4 presence of the four, so mid-sized firms there hold client relationships that would sit with a national firm elsewhere.
One factor candidates routinely underestimate: Austin's higher cost of living meaningfully erodes its compensation advantage. A Manager-level offer in Austin that looks 8–10% above a Houston equivalent frequently nets out lower once housing is accounted for. If total financial outcome is the priority, Houston and Dallas usually win.
Firms to know in Texas
Texas has an unusually deep independent firm market — one of the strongest in the country. For candidates targeting small and mid-sized firms, these are the tiers worth understanding.
- Local and independent firms The core of the Texas mid-market and where most public accounting professionals in the state actually work. Firms ranging from a dozen to a couple of hundred people, with long-standing closely-held business relationships — names like Lane Gorman Trubitt and Saville in Dallas, ADKF in San Antonio, and a large number of well-established Houston and Fort Worth practices. This tier offers the earliest client ownership, the most visible partner track, and the broadest range of work. It's also the least visible from the outside, which is precisely why a specialist recruiter is useful here.
- Regional firms with Texas roots A step up in scale while retaining a Texas identity — firms with multiple offices across the state serving mid-market and closely-held clients. PKF Texas in Houston is a well-known example, as are a number of multi-office practices across DFW and Central Texas. These firms suit professionals who want more structure and resource than a small local firm without moving into a national environment, and they often provide the best balance of technical development and client contact.
- Large regional and national firms Weaver and Whitley Penn are the best-known Texas-headquartered firms at real scale, with offices across the state; the national middle-market names (RSM, BDO, Forvis Mazars, Grant Thornton) are also well established. Useful to know as market context and as a reference point for compensation — though the day-to-day at this tier looks more like a national firm than a mid-sized one, with narrower roles and longer partner tracks.
- Big 4 (Deloitte, PwC, KPMG, EY) All four have major Houston and Dallas offices handling the largest engagements in the state. Worth understanding mainly as the place many candidates start — and leave. Professionals moving from Big 4 to a strong mid-sized Texas firm typically gain client ownership, more predictable hours, and a shorter partner track, usually for a modest adjustment in base salary that faster progression tends to recover.
A note on firm size and career pace: the most common reason candidates give us for moving from a national firm to a mid-sized Texas practice isn't money — it's wanting to own client relationships rather than a section of a workpaper file, and wanting to see a realistic route to partner. If that's what you're after, the firms worth talking to are usually ones you won't find on a job board.
Texas CPA license requirements
Licensure in Texas is administered by the Texas State Board of Public Accountancy (TSBPA). Texas has made the most significant change to its licensure structure in decades, and which route applies to you materially affects how long qualification takes.
New for August 2026: Texas now offers two routes to licensure. As of August 1, 2026, candidates may qualify under Pathway A (the traditional 150-hour route) or the new Pathway B (a 120-hour bachelor's route with additional experience). Texas was among the first states in the country to adopt an additional pathway, introduced under Senate Bill 262 to address the shrinking CPA pipeline.
Pathway A vs Pathway B: which route is right for you?
The two routes lead to an identical Texas CPA license. The difference is purely how you get there — one trades a fifth year of education for an extra year of supervised experience.
| Requirement | Pathway A (traditional) | Pathway B (new) |
|---|---|---|
| Degree | Bachelor's or graduate degree | Bachelor's with accounting concentration |
| Semester hours | 150 hours | 120 hours |
| Work experience | 1 year | 2 years |
| CPA Exam | All four sections | All four sections |
| Ethics requirement | Required | Required |
| Available from | Currently available | August 1, 2026 |
Pathway B suits you if you want to start earning sooner and avoid the cost of a fifth year or a master's degree, you're confident you'll stay in Texas, and you have access to a role with proper CPA supervision for two years. The financial case is straightforward: a year of tuition avoided plus a year of earlier full-time earnings is a meaningful swing early in a career.
Pathway A suits you if you're already partway through a 150-hour program or a MAcc, you want maximum flexibility to practice across state lines, or you're targeting firms and career paths where a graduate degree carries independent weight. It also remains the safer default for anyone who might relocate — see the mobility note below.
The full requirements
- 1 Education (either pathway): Pathway A requires 150 semester hours including a bachelor's or graduate degree. Pathway B requires a bachelor's degree with an accounting concentration and at least 120 semester hours, including specified upper-level accounting and business coursework.
- 2 Uniform CPA Exam: Passing all four sections is required under either route. Texas requires at least 120 semester hours (a bachelor's degree or equivalent) to sit for the exam.
- 3 Experience: One year of supervised experience under Pathway A, or two years of non-routine accounting work experience under Pathway B. In both cases the supervising CPA must be licensed and in good standing.
- 4 Ethics: Texas requires an approved ethics course and examination on the Texas Rules of Professional Conduct before licensure. Ethics coursework must be approved by TSBPA specifically — approval by NASBA or another state board alone does not satisfy the Texas requirement.
- 5 CPE (for renewal): Licensed CPAs in Texas must complete 120 hours of continuing education every three years, including an ethics component. Texas licenses renew annually.
A mobility caveat worth understanding: states have adopted additional pathways at different speeds, and a 120-hour license is newer than the reciprocity frameworks built around the 150-hour standard. If there's a realistic chance you'll practice in another state, confirm how a Pathway B license is treated in the specific jurisdictions that matter to you before committing. For candidates who intend to build a career in Texas, Pathway B is a genuine and welcome shortcut. Rules continue to evolve — always confirm current requirements directly with TSBPA.
Current hiring conditions in Texas
The Texas market reflects national pressures, but several dynamics matter specifically if you're looking at small and mid-sized firms in 2026:
- Mid-sized firms are competing harder than they used to. The shortage of qualified candidates has pushed smaller Texas firms to improve on the things they can control — flexibility, hours during busy season, and clearer progression — because they can't always win on base salary. Candidates have more leverage to negotiate on these points than they typically assume.
- Senior Associate and Manager are the tightest levels. This is where small and mid-sized firms feel the shortage most acutely: enough experience to run client relationships, not so much that the firm can't afford them. If you're at that stage in Texas, you're in the strongest negotiating position of your career so far.
- Multi-state work keeps growing. Businesses continuing to relocate into Texas push state-and-local and multi-state filing complexity down to firms of every size. It's one of the more valuable capabilities a mid-market professional can build, and it transfers well between firms.
- Firm consolidation is changing the landscape. Mergers and outside investment are reshaping parts of the mid-market, and a firm's ownership can change during your time there. Worth asking directly in any interview where a firm sees itself in three to five years — it affects your partner track more than anything else on the table.
- No state income tax remains a real advantage. Texas firms continue to attract candidates from California, New York, and Illinois on net compensation and cost of living, even where gross salary figures look lower.
- The new licensure pathway will widen the entry-level pool. Pathway B's arrival in August 2026 should ease pressure at the bottom of the pipeline over time, though any effect at Senior level and above is several years out.
Frequently Asked Questions
At small and mid-sized Texas CPA firms, a Manager typically earns between $105,000 and $138,000 in Houston and Dallas-Fort Worth, and $96,000 to $125,000 in secondary markets like San Antonio. Big 4 and large national firms pay above these ranges. Texas has no state income tax, which meaningfully increases take-home pay relative to comparable salaries in states like California and New York.
As of August 1, 2026, Texas offers two pathways. Pathway A requires a degree, 150 semester hours, and one year of supervised experience. Pathway B requires a bachelor's degree, 120 semester hours, and two years of supervised experience. Both require passing all four sections of the CPA Exam and completing a Texas-approved ethics requirement. Licensure is administered by the Texas State Board of Public Accountancy (TSBPA).
Both lead to the same Texas CPA license. Pathway B (120 hours, two years' experience) suits candidates who want to start earning sooner, avoid the cost of a fifth year, and expect to build their career in Texas. Pathway A (150 hours, one year) remains better if you're already partway through a 150-hour program, want maximum flexibility to practice in other states, or are targeting paths where a graduate degree carries independent weight. Because states have adopted additional pathways at different speeds, confirm how a Pathway B license is treated in any state you might move to.
Houston and Dallas-Fort Worth are the two largest markets and have the deepest independent firm sectors. Austin is the fastest-growing, with a smaller but expanding group of mid-sized firms. San Antonio is the most independent-firm-dominated of the four, with comparatively little Big 4 presence — which often means broader responsibility earlier.
At small and mid-sized firms the core work comes from closely-held and family-owned businesses, real estate and construction, healthcare, and professional services. Businesses relocating into Texas also generate steady multi-state and state-and-local tax work. Energy matters in Houston, but the largest energy engagements sit with the Big 4 and biggest regional firms — smaller firms more often serve royalty owners, working-interest partnerships, and family energy holdings.
For someone building a career at a small or mid-sized firm, Houston and Dallas-Fort Worth both offer the largest number of established independent firms, meaning real choice about culture, client mix, and hours. Austin has fewer mid-sized firms but they tend to be younger and growing, which often means faster responsibility and a clearer partner track. Austin's higher cost of living erodes much of its nominal pay advantage. San Antonio is worth considering too — it has the least Big 4 presence, so mid-sized firms there hold client relationships that would sit with a national firm elsewhere.
Texas has no state income tax, so a Texas salary delivers meaningfully more take-home pay than an equivalent salary in a high-tax state. A package in Houston or Dallas often nets out comparably to a noticeably higher gross figure in California or New York. This is one reason Texas firms compete effectively for talent without matching coastal headline numbers.