TrustRadius: an HG Insights company

TaxJar

Score8.6 out of 10

22 Reviews and Ratings

What is TaxJar?

TaxJar offers automated sales tax reporting and filing.

According to the vendor, capabilities include:

Accurate, Detailed Sales Tax Reports:
TaxJar’s local jurisdiction reports show sales and sales tax collected not only for each state, but for local jurisdiction (counties, cities, special jurisdictions, etc). Users can also sort data by any date range.

Estimated Sales Tax Reports: Users can see a comparison of what they actually collected versus what they should have collected.

One-Click Automated Filing: TaxJar will automatically file sales tax returns directly to the states. Available in 23 states with more to come.

Up-to-Date Collection Data: A dashboard shows how much has been collected in sales tax for any state, and when the next payment is due. Data is updated automatically, every day.

Support for Multiple Channels: Connect to platforms like eBay and Amazon.

Simple Pricing: No setup fees. No contracts. Users pay one simple monthly fee based on volume of transactions.

Categories & Use Cases

Media

TaxJar Reports dashboard showing you the states in which you have nexus, how much sales tax was collected, and your gross sales summary.
TaxJar state report showing breakdown of sales tax by city, county, and local jurisdiction for easy sales tax filing.

1 / 2

Top Performing Features

  • Geolocation for Tax Assessment

    Ability to use geolocation, which is more precise than zip codes, for mapping taxes to specific jurisdictions.

    Category average: 8.9

  • Tax Exemption Processing

    Ability to generate, track, exemption certificates from sales invoices.

    Category average: 8.2

  • Complex Tax Scenario Management

    Ability to automate handling of tax holidays and other anomalies.

    Category average: 7.4

Areas for Improvement

  • Tax Document Management

    Collection and storage of tax documents, especially exemption certificates, and ability to retrieve them to use for tax audits.

    Category average: 8

  • Cross-border Taxes

    Software is capable of calculating and filing taxes, such as customs, across countries.

    Category average: 7.8

  • 3rd-Party Software Integrations

    Pre-built integrations with various systems such as ERP, ecommerce, CRM, invoicing and billing, accounting, and procurement applications.

    Category average: 7.5

Solid foundation, lots of potential

Pros

  • estimate taxes via zip code
  • estimate taxes via full address
  • generate reports of taxes owed to states
  • straight forward API

Cons

  • stripe integration needs improvement
  • taxes are based off of USPS data rather than IRS data

Return on Investment

  • helped us recover lots of money from high tax states

Other Software Used

Stripe, Mailchimp, Datadog

Rocky start, but good product

Pros

  • Calculates tax for our BigCommerce store
  • Files tax returns for states we have nexus in
  • Shows taxes handled by marketplace facilitators

Cons

  • Support is lacking. Needs to be more easily accessible.

Return on Investment

  • Has made my job easier by having them file and remit taxes for us to other states.

Alternatives Considered

Avalara

Other Software Used

Zentail, BigCommerce, ShipStation

TaxJar does exactly what you need at a great price

Pros

  • Files monthly and quarterly sales tax filing
  • Alerts us well in advance of potential nexus states
  • Makes it super easy to implement a new brand or subsidiary

Cons

  • International compliance would be amazing, at least the rest of North America
  • A bit more intuitive report features, like drill downs

Return on Investment

  • We have been able to save over 120 hours of dev time building our own solution
  • We have saved on have to hire a sales tax accountant

Alternatives Considered

Avalara

Other Software Used

NetSuite ERP, Salesforce.com

TaxJar saves me a day of work for each return (at least!)

Pros

  • automatically calculate what's needed for sales tax returns
  • automatically completes sales tax returns
  • automatically files sales tax returns

Cons

  • It would be nice if we could upload our manual sales tax returns, so everything is organized in one place.

Return on Investment

  • Saves me a day of work (at least) for each return

Your accounting department will thank you!

Pros

  • Consolidates sales tax
  • Gives reminders when sales tax are due for each state
  • Easily download the information to an Excel file

Cons

  • Perhaps creating a mobile application.
  • Making it easier to search through previous years of sales tax

Return on Investment

  • Increased productivity for our company
  • Reduced time for our accounting department.
  • Clarity about the position of our company