6 Best Sales Tax Software for Small Business

One of the challenging tasks for small business owners is to keep track of their sales tax operations. While you concentrate on other tasks for growing your business, the complexity of sales tax should not feel like a burden. 

This is where you need to use the best sales tax software for your business. It helps in breaking the chaos and lets you automatically apply sales tax rates to your invoices. The best part is that it even automates filling remittances, so you don’t have to worry about anything.

So going ahead, I will explain the list of best sales tax software that allows you to stay on top of any local/federal changes or exemptions to make your business audit-ready.

If you’re ready, let’s get started. 

1. Intuit TurboTax – Overall Best Sales Tax Software

Intuit TurboTax - Best Sales Tax Software

Intuit TurboTax is the #1 sales tax software that has helped over 14 million people file 100% accurate taxes. It is super-simple, fast to use, and its support team is top-notch and outstanding.

You can get started by filing your taxes within 3 simple steps. All you have to do is to import the previous year’s tax return, take a snap of it and file it immediately with high precision. Besides, it enables you to seamlessly move info from federal to your state to finish the tax operations quickly. 

The best part of using TurboTax is choosing a dedicated tax expert to help you with tax operations. Whether you need to execute simple tasks, maximize deductions & credits, or manage expenses, the tax expert will perform all the tasks and helps in finding the right tax solution for you.

Overall, TurboTax offers the easiest way of tax filling and preparation to get your taxes done right.

Key Features – 

  • File taxes electronically and get an email confirmation
  • Get expert-approved tax advice with a final review
  • Ensures a maximum refund guarantee 
  • Validate your tax return before filing 
  • Free year-around audit support guidance 
  • Track your return status with push notifications 
  • Securely switch between devices and pick from where you’ve left

Pricing Plans – TurboTax offers three separate pricing plans. The “do-it-yourself” plan comes with a free edition that only allows simple tax returns. To access premium services, you’ll have to upgrade to paid plans starting at $59.

If you wish to get premium tax advice, the pricing starts at $79 and goes upto $199. On the other hand, if you want to hire a tax expert, the package starts at $199 and extends upto $389.

2. TaxJar – Tax Software for eCommerce 

TaxJar - Best Sales Tax Software for Small Business

TaxJar is one of the best sales tax software for eCommerce businesses, trusted by brands like Shein, BigCartel, LandRover, and others. It automates the whole tax lifecycle across different sales channels – from calculation and nexus tracking to reporting & filling. 

TaxJar’s team constantly monitors the latest sales tax laws so that when the rates change, they get immediately reflected. Besides, its AI-powered product classification tool evaluates and suggests the right tax code for all of your products so you can stay legally compliant and hassle-free. 

Overall, TaxJar leverages powerful technology to untangle all the sales tax complications. It empowers small businesses to manage taxes by bidding goodbye to time-consuming manual operations. 

Key Features – 

  • Automate sales tax compliance across 11000 jurisdictions 
  • Dedicated nexus insights dashboard
  • Helps in automatic preparation and submission of returns
  • Simple and advanced CSV import 
  • Automatic generation of state-specific reports with jurisdictional breakdowns
  • Customer exemption support 

Pricing Plans – TaxJar offers a 30-day free trial with full access to its Starter Plan, the ability to import 60 days worth of order data, API access, and team management. For upgrading to paid plans, you must contact their sales team. 

3. Avalara AvaTax – Sales Tax Compliance Software

Avalara Avatax is a popular cloud-based sales tax software for small businesses. It determines and calculates the latest tax rates based on location, item, legislative changes, regulations, etc. In addition to sales tax, it also calculates excise tax, VAT, GST, consumer use tax, beverage alcohol tax, and consumer use tax. 

It has a robust database that gets automatically updated to send the information to your system in real-time without any delay. This ensures that you stay on pace with great precision and accuracy. 

Overall, AvaTax simplifies all your business’s tax operations. With AvaTax, you only pay for what you need, so you don’t have to worry about splurging dollars unnecessarily.

Key Features – 

  • Track Nexus and get alerts for tax obligations 
  • Accurate VAT calculation across UK and EU 
  • Advanced transaction rules 
  • Access to over 1200 signed partner integrations
  • Export data to reports for filing and auditing
  • Map view of tax thresholds
  • Options for small, medium-sized, and enterprise businesses

Pricing Plans – You’ll have to contact the Avalara AvaTax team to get started with stress-free tax compliance. 

4. Sovos Taxify – Sales Tax Filing Software for SMBs

Powered by Sovos Compliance, Taxify has been the leader for over 35 years in sales and use tax compliance. It safeguards you from tax liability and alleviates vexatious tax compliance obligations, thus increasing your operational efficiency. 

It complies with thousands of tax rules & rates. It gives flexibility to all online retailers, including Amazon sellers and manufacturers, to precisely calculate tax, avoid gaps and automatically file state & local tax forms. The entire process is streamlined and scalable, so it doesn’t matter whether you file 50 or 500 returns.

Taxify by Sovos is easy-to-use and a self-service software platform adaptable to any business type. Regardless of the number of sales & jurisdictions you enter into, Sovos Taxify will aid you through everything. 

Key Features – 

  • Electronic data submission via e-file, EDI, and electronic return files
  • Get notified of every state update or automate it 
  • Reduced audit risk 
  • Automatically pulls your store’s transaction data for filing 
  • Access to Sovos Managed Services – dedicated tax preparer to help you with on-time tax filing 

Pricing Plans – You’ll have to contact the Sovos Taxify team to get started. 

5. TaxCloud – Affordable Sales Tax Software

TaxCloud is the most affordable sales tax software that allows for a simple and painless way of calculating and collecting taxes. Being an official partner of Certified Service Provider, TaxCloud’s rates & rules are frequently audited, tested, and validated, so your profits are always evergreen.

It comes with the best-in-class tax data, automated filing options, and updated legislation to ease the sales tax operations. Whether you’re remitting to the states on your own or outsourcing the filing & remittance, tax cloud has got your back.

Bottom line, TaxCloud is an easy-to-use sales tax software that doesn’t cost your money to stay tax compliant. 

Key Features – 

  • Get detailed tax info for your products at the time of sale
  • Automatically file and remit sales tax to Taxcloud’s member states
  • Indemnification in member states 
  • Create authorized sales tax reports to assist your filing needs 
  • Handles communication with member states on your behalf

Pricing Plans – TaxCloud’s base price starts at $10, covering the cost of access and maintenance of historical data & reports. Afterward, you have to pay based on usage. 

6. Vertex – Best end-to-end sales tax software 

Vertex is a high-performing sales tax software that leverages the power of technology to perform tax operations at a rapid speed. It is packed with over 300M data-driven tax rules and supports indirect tax compliance with around 19000+ jurisdictions globally. 

As and when your business expands, you can effortlessly process high-volume transactions. You can even perform Edge Computing to calculate tax at the point of transaction. 

Also, there’s no headache of managing documents – you can collect, digitize, store, archive, search and report on all tax-relevant documentation. 

Vertex progresses with the speed of commerce. With 30+ years of unparalleled experience, Vertex simplifies and automates the sales tax operations to support your business’s growth opportunities.

Key Features – 

  • Streamline and centralize indirect tax determination
  • Automate reporting and compliance to save time 
  • View trends, highlight exposure, risk and pinpoint areas for priority action 
  • Leverage data intelligence tools to optimize tax performance 
  • Suitable for digital, physical, and hybrid business types 

Pricing Plans – You will have to contact their sales team to get a quotation based on your requirements

Which is the best sales tax software for your business?

The growing changes in digital tech and retail trends profoundly affect your business’s sales tax. That’s why you have to cope with evolving tax rates and compliances so you can file easily and prevent penalties.

Here are my top 3 picks for the sales tax software –

  • Intuit TurboTax – File returns by yourself or seek the help of a tax expert
  • TaxJar – Automated sales tax software for eCommerce
  • Sovos Taxify – Best Tax filing software for small to medium-sized businesses 

Now, it is your turn to pick the most suitable one for your business and start setting it up for your business. Beyond this list, here are a few more software lists that you may want to read next –

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