Almost every tax leader knows what they want their department to become: proactive, strategic, and visible to the C-suite. Very few have got there. Fewer than 2% say they have achieved their 2030 vision or are close to it.
The 2026 State of the Corporate Tax Department report looks at why. The answer is less about any single technology and more about how tax teams’ operations are planned, resourced, measured and communicated.
What the numbers say about corporate tax teams
73%
of tax leaders say their department is still seen primarily as a cost centre, or at best equal parts cost centre and value creator.
8x
leaders who say their department is seen as a value creator are eight times more likely to rate it exceptionally successful.
53%
say their tax department is under-resourced, the third year running that more than half have said so.
62%
report limited or no progress on automation and AI adoption in the past 12 months.
84%
say AI use should be off-limits in some areas of tax, even with controls in place.
What tax leaders can learn
There are four things that every tax leader should be asking right now. This report highlights the questions that separate successful tax departments from the rest:
- Is our tax department viewed as a value creator? Why 83% of tax leaders feel confident articulating their value, yet CFOs say what lands on their desk is mostly audits, penalties and filing rates.
- Is our tax department adequately resourced? The main reasons teams are under-resourced, what CFOs say they need to see before approving headcount, and the alternatives to hiring that teams are already using.
- How focused and effective is our technology strategy? Why process automation is the top priority (60% rank it first), where leaders see the biggest opportunity in the next two years, and where they draw the line on AI.
- What is our vision for 2030? How leaders expect their own roles to change, and how close departments really are to getting there.
Inside you’ll find
- How value-creator departments report differently to the CFO (not more metrics, but different ones).
- What CFOs rank as essential when evaluating a request for more headcount.
- Where tax leaders think automation and AI will make the biggest difference in the next two years.
- Where AI should be off-limits, according to the people accountable for sign-off.
- Practical guidance on how to steer your department in the right direction.
About the research: The Thomson Reuters Institute’s 2026 State of the Corporate Tax Department report is based on a 15-minute online survey completed by 244 decision-makers in corporate tax departments, conducted in July and August 2026. 92% were in leadership positions, and 34 CFOs were also surveyed. Produced in partnership with Tax Executives Institute.
