TaxJar
TaxJar Reviews
& Product DetailsWhat is TaxJar?
TaxJar is a cloud-based and automated platform supporting businesses of all sizes through a lifecycle approach to handle their sales tax. The software was started back in 2012 by the founders, that noticed a problem in the way companies were filing their taxes. Even though several other software developers were tackling this problem, they thought they could do better. Thus, Tax Jar decided to tackle with automation the sales tax problem nobody wants to deal with.
Moreover, the platform covers everything from calculation to filling and reporting. TaxJar is an AI-powered solution and comes with one of the fastest APIs available in its niche.
Last, in April 2021, TaxJar was acquired by Stripe. Therefore, the Tax Jar will be integrated under Stripe Billing but will still be available as a self-standing solution.
Best For
- StartUps
- Freelancers
- Small Business
- Medium Business
- Large Enterprise
- Non-profit Organization
- Personal
- Cloud, SaaS, Web-Based
- Mobile - Android
- Mobile - iPhone
- Mobile - iPad
- Desktop - Mac
- Desktop - Windows
- Desktop - Linux
- Desktop - Chromebook
- On-Premise - Windows
- On-Premise - Linux
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Company Name
TaxJar
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Located In
United States
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Website
taxjar.com
Starting from:
$19 /month
Pricing Model: Subscription
- Free Trial
- Free Version
Pricing Details:
TaxJar comes with three pricing plans that cater to every organization’s needs. Tax Jar also offers a 30 days trial period where you can try all the features and decide which plan fits yours. However, be aware that both the Simple and the Professional plans come with different prices depending on orders per month.
Starter
price for 200 orders per month
Professional
price for 200 orders per month
- Data Import/Export
- Tax Calculation
- Tax Compliance
- Value Added Tax (VAT)
- Transaction Tracking
- Support
- Status Tracking
- Data Verification
- Long-term Storage
- Credit & Deduction Suggestions
- Diagnostics
- Electronic Filing
- State Returns
- Document Management
- Exemption Management
- Disbursement Options
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Ease of Use and Automation
Many users appreciate how easy TaxJar is to use, particularly when automating sales tax calculations and filings. The platform simplifies what can otherwise be a complex and time-consuming process, allowing businesses to focus more on their core operations.
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Accurate Tax Calculations
TaxJar is frequently praised for accurately calculating sales tax rates across different states and jurisdictions. Users often mention that they trust the platform to ensure compliance with ever-changing tax laws and regulations.
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Seamless Integration with E-commerce Platform
One of TaxJar’s standout features is its ability to integrate seamlessly with popular e-commerce platforms like Shopify, Amazon, WooCommerce, and others. This integration helps businesses automatically sync sales data, reducing manual data entry and minimizing errors.
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Comprehensive Reporting
Users value the detailed reporting features offered by TaxJar. The platform provides clear and comprehensive reports that make it easy to track sales tax liabilities, which is particularly useful when preparing for tax filing deadlines.
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Customer Support and Resources
TaxJar’s customer support and educational resources, such as webinars, articles, and tutorials, are often highlighted as helpful. Users appreciate the responsive support team and the information available to help them understand and manage their sales tax obligations.
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Pricing
Some users feel that TaxJar’s pricing is higher, especially for smaller businesses or those with lower transaction volumes. The cost can increase, mainly if the business operates in multiple states with complex tax requirements.
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Learning Curve for New Users
While the platform is generally user-friendly, some users report a steep learning curve when starting. They suggest that more onboarding support or simplified setup guides could help new users get up to speed faster.
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Limited International Tax Support
TaxJar primarily focuses on U.S. sales tax, and some users have noted that the platform is less effective for managing international taxes. Businesses selling in multiple countries may find the lack of global tax support a limitation.
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Occasional Integration Issues
A few users have mentioned experiencing occasional issues with integrations, particularly during updates or when syncing data between platforms. These issues can sometimes require manual intervention or assistance from support.
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Complexity with Advanced Features
While TaxJar offers powerful features, some users find that advanced functionalities, such as managing nexus or handling returns for multiple states, can be complex and require a deeper understanding of tax regulations. More in-depth tutorials or simplified processes could help users take full advantage of these features.
Disclaimer
Here at Tekpon's Global Buzz, we blend AI smarts with a human touch to offer a snapshot of user reviews from the web. While we carefully craft these summaries, please remember they reflect diverse user views and experiences, not Tekpon’s own opinions.
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Table of Contents
About TaxJar
TaxJar is software trusted by more than 23,000 companies to handle their taxes worldwide. The software comes with several technological integrations, making it the perfect option for any e-commerce store. Furthermore, Tax Jar aims to make tax filing and dealing with sales tax a piece of cake. How are they planning to do that? We’ll tackle this in the TaxJar review as follows:
How does TaxJar work?
Tax Jar is a platform that helps you keep track of and file your taxes easily. It does this by connecting to your shopping cart or marketplace and collecting the necessary data. Once collected, it downloads and compiles the data into reports that make filing sales tax in the state where you have your sales tax nexus easy.
For instance, if you use Shopify, Tax Jar connects to all your locations, identifies where you should be collecting sales tax according to the economic nexus law, and provides you with return-ready reports for each jurisdiction.
It’s worth noting that Tax Jar is versatile geographically and can track sales taxes in many regions.
Where does TaxJar work?
The sales tax filling software works in 31 countries through its API function. Therefore, users can use the software in the European Union, the US, Canada, Australia, and the United Kingdom.
TaxJar Detailed Integrations
The software integrates with the most relevant eCommerce software and some essential accounting software in the market. However, since the end of April 2021, you can enjoy the full Tax Jar integration with Stripe Billing after Stripe acquired them. Moving on with the TaxJar review, we will be looking at several integrations:
First of all, official integrations are built and maintained by TaxJar.
Second, premier-certified integrations are built and supported by the partners; however, they are tested and certified by TaxJar. Last, registered certified integrations are also created and supported by partners, tested, and certified by Tax Jar.
TaxJar Detailed Features
There is no review without features. Let’s continue our Tax jar review with the features and benefits. This will help us also underline the weaknesses of the software. Thus, the main features of the tool are:
- AutoFile
- Sales tax reports
- Auto-sync e-commerce & shopping cart
- Shipping taxability
- States and local sales tax report
- Sales tax sourcing
- API
Let us look at these features to decide if you need this or handle this on your own. Now, if you think you can handle filing taxes yourself, we would suggest you pay attention and answer the following questions:
- How many sales do you have per month?
- How much time does it take you to file your sales taxes?
- With how many states do you collaborate?
- How much time does it take from the one dedicated to growing your business?
In conclusion, if you have a low amount of invoices per month and it takes you a small amount of time to handle your taxes, Taxjar might be expensive and not suitable for you; however, if you own a small business with a large number of orders, this tool will save lots of precious time which you can spend on growing and developing your business.
Above all, if you conclude that this tool would bring you value and save you time, let’s continue the Tax Jar review by taking all its features step by step.
AutoFile
What is AutoFile TaxJar? In short lines, Tax Jar is an automatic filling service for state sales tax offered by the tool. The function will collect all your sales data into formats that match the authorities’ requirements. Moreover, it keeps track of submitting deadlines and files your sales tax reports without errors or delays.
However, take this with a grain of salt as any software has errors occasionally, and we wouldn’t recommend anybody to rely 100% on any software. Thus, we recommend you check beforehand and ensure all work optimally.
Estimated Sales Tax Report
The tool collects sales and sales tax and estimates tax by local jurisdictions. Furthermore, the estimated sales tax reports underline the difference between the actual vs. predicted with the scope to check if you have collected the right amount of taxes.
Auto-sync E-commerce and shopping cart
TaxJar integrates with most e-commerce and shopping cart platforms. Integrating with any shopping cart is easy and takes only a few minutes to set up.
First, you should connect your cart or marketplace to Tax Jar. This is one of the first setups you will be required to do when setting up. Second, connect one of the tools by selecting the shopping cart or marketplace you are using to get directions on setting up your provider.
Third, after you complete the setup, TaxJar will take time to import all the sales information from your e-commerce platform and create a Sales Tax Report. You will receive an email when the import is ready.
Last, if, for some reason, your cart is not available amongst the icons, you can safely import a CSV file with all your sales data to the platform. After the upload, it will take some time for the program to process all the information, and once it is finished, it will notify you, and you’ll be able to check the Sales Tax Report.
Shipping Taxability and States Tax Report
As probably some of you do not know, some states in the USA tax shipping. Most of the states in the USA do that. However, in this circumstance, most of the time, the customer’s location influences the cost more than your location. Therefore, the local government requires you to charge sales tax for any order to residents of states where your company has a nexus.
Keep this in mind significantly when expanding to new states, no matter the situation of your state, meaning even if it does or does not charge tax for shipping.
To help you with this situation, TaxJar has the Sales Nexus feature. The feature keeps track of your sales data to determine which state/states meets economic nexus thresholds. Further, TaxJar will help you handle the sales tax situation in those states.
Tax Jar will also send you notifications with states close to the nexus.
TaxJar API
Sources say that TaxJar has the fastest APIs in the niche. The API works with the previously mentioned Official integrations, giving real-time sales tax rates and calculations from states to special taxing districts.
The API by TaxJar comes with a guarantee of 99.99% accuracy. Now, the API does this by avoiding ZIP code rates and instead using rooftop-level calculations.
We believe that it is established that the API makes your life easier; however, the API is available only from the Professional TaxJar pricing plan. The Starter plan offers only Simple CSV import.
How long does it take to import into TaxJar?
It depends on the method you use to import your data into TaxJar. As mentioned above, you have two methods of importing data into Tax Jar – CSV file or Auto-sync with e-commerce and marketplaces-. It will take the TaxJar feature longer to import from a CSV. Usually, importing a CSV file will take about 30 minutes, depending on the number of transactions. The API option will take you between 30 min and one hour for the first time, and afterward, it does real-time updates.
TaxJar Detailed Alternatives
- Avalara
- Vertex
TaxJar Review Conclusion
After analyzing the TaxJar review, we have come to the conclusion that it is an outstanding platform for automating sales tax. However, whether or not it is necessary for your business is a different story. Although all of the software versions are reasonable, we recommend upgrading from the Professional version to enjoy all of the features and automation that TaxJar has to offer.
It is important to note that the tool is completely cloud-based and has some limitations in terms of API and official integrations. Therefore, before purchasing a plan, make sure that you can take advantage of all the features that you would buy the product for in the first place.
We would love to hear your thoughts and personal experiences with TaxJar.
