The best sales tax software imports transactions, applies accurate rates for each jurisdiction, and automates filing. Here are my top picks:
- Best overall sales tax software: Avalara
- Best for large ERP systems and global sales tax: Vertex
- Best for small businesses with integrated invoicing: Zoho Books
- Best for e-commerce platform integration: TaxJar
- Best for SaaS companies
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- Quick comparison of the best sales tax software
- Avalara: Overall best sales tax software
- Vertex: Best for large ERP systems and global sales tax
- Zoho Books: Best for small businesses with integrated invoicing
- TaxJar: Best for e-commerce platform integration
- Anrok: Best for SaaS companies
- My methodology
- Frequently asked questions (FAQs)
Quick comparison of the best sales tax software
| Avalara | ||||
| Vertex | ||||
| Zoho Books | From $20 monthly | |||
| TaxJar | From $19 monthly | |||
| Anrok |
Avalara: Overall best sales tax software
I recommend Avalara as the overall best sales tax software, offering robust automation, deep integrations, and comprehensive compliance for businesses of all sizes. It stands out for its advanced automation, seamless integrations, and global tax coverage.
Pricing
Avalara’s pricing is custom-quoted based on business size, transaction volume, number of jurisdictions, and required features. Core subscription plans are offered on a monthly or annual basis and scale with operations.
You should budget for transaction-based fees, setup/integration costs, and optional add-ons. Discounts are available for long-term contracts and higher transaction volumes, helping large organizations manage costs more predictably.
Standout features
- Connects with over 600 ERP, e-commerce, and accounting platforms for efficient workflow automation
- Offers a way to simplify sales tax processing for multistate filers via the 24 states? that participate in the Streamlined Sales Tax (SST) program; Avalara identifies qualifying vendors and processes filings in accordance with the SST program
- Automates both sales tax and consumer use tax calculation and accrual, helping businesses remain compliant whether they are buyers or sellers
- Centralizes records and automates audit trail creation with its audit defense and preparation tools
Pros & cons
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Vertex: Best for large ERP systems and global sales tax
Vertex is the leading choice for complex, international sales tax automation. Its global compliance and flexible deployment make it ideal if you have a large enterprise with sales tax and VAT in multiple jurisdictions. It is built for slightly more complex environments than competitors like TaxJar or Zoho Books.
Pricing
You can get a custom quote based on business size, transaction volume, module selection, and deployment requirements. Setup costs are often significant for customized integrations.
For reference, third-party sources and reviewers indicate that Vertex’s pricing typically runs from $8,500 to $144,000 per year, with a median annual spend of around $33,000 for midsize and enterprise businesses. Additionally, discounts are reportedly available for long-term agreements or bundled services.
Standout features
- Has native connections to SAP, Oracle, Microsoft Dynamics, and NetSuite
- Features full coverage for US sales/use tax, Canadian GST, EU VAT, and other international compliance needs
- Supports custom tax rules, jurisdictional logic, and country/currency-specific tax policies
- Manages everything from calculation and returns filing to reporting and exemption certificate management
- Includes data validation modules for location accuracy
Pros & cons
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Zoho Books: Best for small businesses with integrated invoicing
Zoho Books offers the best sales tax solution for small businesses needing integrated invoicing and simple, affordable compliance. It offers fast setup and direct integration with invoicing, payments, and client management features. Unlike platforms like Avalara and Vertex that are built for complex entities, Zoho Books is designed for ease of use.
Pricing
Zoho Books provides transparent, budget-friendly pricing that’s ideal for small business owners.
- Free plan: $0/month for businesses with annual revenue under $50,000; includes integrated invoicing, sales tax management, and online payments
- Standard plan: $20/month; includes multiuser access (up to 3 users), automated workflows, and detailed tax reports
- Professional plan: $50/month; includes project billing, vendor management, and advanced tax tools
- Premium and Enterprise plans: $70/month; supports advanced automation and custom roles
- Avalara integration (add-on): Gives access to advanced tax rate updates and compliance features
Standout features
- Has an integrated invoicing workflow, so it automatically calculates sales tax on every invoice, with direct links to payment gateways for faster collections
- Offers tax rate and exemption management, allowing you to set up default rates, exemptions, and override rules for US, Canadian, and international sales tax scenarios, all from a central dashboard
- Fetches the latest tax rates and compliance rules automatically when Avalara is connected, reducing manual tax maintenance
- Continuously calculates and summarizes sales tax due with automated tax liability reports, making filing simple and accurate
- Has multicurrency and multilocation support, so it handles localized tax rates and currency conversions for businesses working across regions
- Features custom tax groups, letting you combine state, local, or specific county rates, then apply them to line items or full invoices with one click
- Provides a client portal, so your customers can view their invoices (with correct tax applied) and pay directly, which drives faster payments and compliance
Pros & cons
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TaxJar: Best for e-commerce platform integration
With direct integrations to Shopify, Amazon, Square, and more, TaxJar is my recommended sales tax software for your e-commerce business. It simplifies sales tax calculations and reporting, with its primary focus on modern commerce. Its main advantages over competitors like Avalara are an easy-to-use platform and a transparent pricing structure.
Pricing
TaxJar offers simple, transaction-based pricing with multiple tiers and a free trial.
- Starter: From $19/month; includes four free filings per year (additional filings at $30 each)
- Professional: From $99/month; includes 12 free filings a year (additional filings at $35 each)
- Bulk transaction volume discounts
- Free 30-day trial
Standout features
- Features pre-built tax management connectors for Shopify, Amazon, Walmart, Stripe, eBay, and more
- Applies accurate rates based on state, county, and city rules instantly
- Compiles transaction data by jurisdiction
- Alerts businesses when sales activity triggers new state compliance obligations
- Offers multiuser access and role assignment for larger teams on Professional plan
- Provides phone support and dedicated account managers on Professional plan
Pros & cons
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Anrok: Best for SaaS companies
While TaxJar and Zoho Books are best suited for smaller businesses and a variety of industry types, Anrok offers compliance specifically designed for the software industry. It is ideal for fast-growing tech companies and cloud service providers due to its specialized focus on the distinct requirements of SaaS models. It simplifies multijurisdictional compliance, tracks nexus for remote teams, and manages global tax scenarios.
Pricing
Anrok offers customized pricing for its Starter, Core, and Growth tiers. You will receive a quote based on sales volume, jurisdictions, and operational complexity, covering end-to-end sales tax automation, global VAT support, and integrations. That is ideal if you have a fast-growing company needing scalable compliance.
Standout features
- Seamlessly connects to Stripe, QuickBooks, and Xero
- Has integrated registration, filing, and remittance
- Features exemption certificate management; has a centralized platform for certificate collection, validation, and audit trail
- Offers technical consultations and custom API integrations, available from Core plan upward, for advanced automation and reconciliation
Pros & cons
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My methodology
Here are the criteria I used to analyze the best sales tax software options:
- Business requirements assessment: I began by pinpointing core business requirements, focusing on areas like multijurisdictional complexity, product and service taxability, anticipated growth, and whether manual processes or automation would be needed for filings and rate updates.
- Features: I evaluated each platform for its process of handling rate updates, exemption certificate management, and automated return filing.
- Integrations: Integration capabilities were assessed by looking at connections with ERPs, e-commerce platforms, and accounting tools.
- Total cost: I analyzed the publicized pricing structure for each platform. The objective was to find solutions with transparent pricing and scalable plans. In the absence of this information, detail was provided on how to get more information.
- Scalability: Each software was analyzed on its ability to support increasing transaction volumes, new geographic areas, additional users, and changing tax regulations.
Frequently asked questions (FAQs)
Are most sales tax platforms equipped to manage global sales tax regimes, such as VAT and GST?
Some platforms, like Avalara and Vertex, are set up to handle international sales.
How does the software verify the tax-exempt customer and certificate validity?
Sales tax software verifies tax-exempt customers by collecting exemption certificates during onboarding or checkout and validating them for format, jurisdiction, and expiration against current databases and government-issued numbers.
Do I have to file sales tax in every state?
If you have nexus (physical presence, remote employees, inventory, or exceeding economic thresholds), then yes, you have to collect and remit sales tax in the state. Without nexus, there’s no sales tax obligation.
Can sales tax software assist with audit preparation?
Yes, sales tax software can assist significantly with audit preparation by automating document management, providing detailed transaction histories, and generating compliance reports.