2019 Review of TaxJar

TaxJar is designed for businesses that sell products online; it integrates with a variety of popular ecommerce platforms. TaxJar also offers a Tax Advisor plan that is aimed at accounting professionals that offer sales and use tax management to their clients. Top-notch integration with popular online shopping cart platforms such as Magento, PayPal, and Amazon is also available in the application. In addition to sales and use tax, TaxJar also offers two add-on applications: SmartCalcs, which is an API that is designed to calculate sales tax for any U.S. location as well as international rates for Canada, Australia, and the European Union, and AutoFile, which provides complete efile capability for sales and use tax for all 45 states that currently impose a sales tax.

Once users sign into TaxJar, they can choose from several ecommerce platforms with which to connect, with the ability to connect to multiple platforms if desired. If the platform they use is not available, users can choose to utilize the SmartCalcs API or just import sales data into the application using a CSV file. Navigating in TaxJar is easy, with users able to use the dashboard to access a variety of system functions as well as view vital data such as year-to-date sales totals, gross sales, taxed sales, and sales tax collected.

TaxJar will display any state for which you are currently collecting or plan on collecting sales tax. This can be the state that the business is located in, or the state where the customer resides. TaxJar creates a return ready sales tax report which users can use when manually filing their returns in each of the states where a return is required. Tax Jar also compares actual tax collected with how much tax should have been collected to determine whether tax has been over-collected or under-collected. 

Once reports are produced, users can opt to file returns manually, or via the state’s website. For those that prefer automatic e-filing, users can purchase a subscription to AutoFile, which provides automatic e-filing in select states, though AutoFile is not recommended for businesses that currently process a high number of exempt transactions, since the application does not currently offer exempt certificate management. 

SmartCalcs, mentioned earlier, is an add-on module that handles both origin-based and destination-based tax sourcing rules. SmartCalcs also handles multi-state nexus, as well as international support for the European Union and Canada, with VAT calculations available as well. SmartCalcs currently supports exemptions for Amazon, Shopify, BigCommerce, Squarespace, and Etsy sellers, with users able to categorize products using the Exemptions tab on the navigation bar. Exemptions for additional shopping cart platforms are expected in the near future.

In addition to sales tax calculations, TaxJar also includes use tax reporting, with a report available that details use tax by state, county, city, and tax jurisdiction; simplifying the filing process considerably.

TaxJar offers integration with many popular ecommerce platforms including Magento, Shopify, Amazon, Square, Stripe, Etsy, Walmart, Squarespace, Woo Commerce, BigCommerce, eBay, and PayPal via connectors, with users able to connect to more than one platform if needed.

TaxJar offers good support resources from the Help Desk page, including access to a variety of guides and getting started videos. A searchable knowledgebase is available around the clock, as is access to a variety of help and how-to articles on a variety of subjects, including questions on integrations with 3^rd party ecommerce platforms. Direct product support is available via email only, or users can fill out a support request form from the TaxJar website.

TaxJar is a great fit for those selling products on an ecommerce platform, though the Tax Advisors program offers accountants and CPAs a free plan that allows easy management of multiple clients from a single platform.  

TaxJar 1K starts at $19.00 per month, and includes up to 1,000 transactions per month. The 5K plan is $49.00 per month for up to 5,000 transactions, and the 10K plan is $99.00 per month, for up to 10,000 transactions. Plans are also available for those processing more than 10,000 transactions per month. All plans include automatic sync with shopping carts and eCommerce platforms, return-ready reports for all states, and automatic detection of over or under-collection of taxes. Users also have the option to enroll in AutoFile for complete e-filing, with filings starting at $18.75 each, with a volume discount available. TaxJar also includes a free, 30-day trial that users can try out prior to purchasing.  

2019 Overall Rating: 4.5 Stars