TaxCloud vs TaxJar: Which is better for your business?
by November 24, 2025
Streamlining sales tax compliance with automated software helps companies minimize costly errors, save time and money, and easily understand filing deadlines and sales tax laws across states.
Both TaxJar and TaxCloud provide easy-to-use automated capabilities that help businesses manage every step of the sales tax process, but how do these platforms differ? We’re comparing TaxCloud vs. TaxJar to help you understand which option is best for your business.
TaxCloud vs TaxJar: Understanding key features
TaxCloud and TaxJar both offer similar automated capabilities to simplify and automate tax calculations, monitor economic nexus thresholds, file sales tax returns, and apply product codes. However, the functionalities and capabilities of each platform’s automations are slightly different.
TaxJar’s core capabilities and functionalities
TaxJar provides an all-in-one sales tax automation solution for e-commerce businesses of all sizes. TaxJar’s core features and capabilities allow businesses to simplify and automate every step of the sales tax process, including:
Real-time sales tax calculations: Once a business’s nexus states are set up in TaxJar, the platform automatically calculates sales tax in every state where the business has sales tax obligations. These calculations account for the rules and sales tax rates for destination-based state and origin-based state guidelines, as well as for any state guidelines pertaining to tax rates for remote sellers. Calculations also account for any exempt services/goods based on product code classification.
Automated tax rule updates: TaxJar automatically updates sales tax rates, exemptions, and other changes impacted by new tax rules as soon as these changes go into effect. The TaxJar team proactively monitors all laws and rules, ensuring all data is updated. Businesses never need to worry if rates are accurate or if a new state law has impacted the taxability of their products.
Automated product categorization: With TaxJar, businesses assign a product tax code to the goods/services they sell. Then, TaxJar applies the appropriate tax rate or exemption for all product sales based on this code; businesses don’t need to worry about whether different states apply different tax rates or laws to their product, this calculation is automated through TaxJar.
Sales tax permit registration: All states require businesses to register for a sales tax permit (also referred to as a license), before collecting sales tax in a state. However, every state has their own unique registration process and form requirements. Businesses can use TaxJar to register for a sales tax permit in any state, saving businesses time and money while avoiding errors.
Economic nexus monitoring: Each state sets its own thresholds for determining economic nexus, which may be based on the total sales volume or or the number of transactions . When businesses hit the threshold that triggers economic nexus, they are required to collect and remit sales tax in that state. TaxJar monitors transactions and alerts businesses when they are nearing nexus in a state, improving compliance and decreasing the risk of financial or legal issues.
Automated filing and remittance with AutoFile: Businesses can automate the process of filing their sales tax returns and remitting payment. TaxJar’s AutoFile option helps businesses avoid late tax filings and payments, improving compliance and saving time. TaxJar is the leader in tax filing automation; in 2024, TaxJar filed 640,000 sales tax returns, remitting $1.3 billion to states. During 2024, TaxCloud filed 18,000 sales tax returns.
TaxCloud core capabilities and functionalities
TaxCloud also offers a one-stop source for sales tax automation. Like TaxJar, TaxCloud automates numerous steps in the sales tax process, including:
Sales tax calculations: Like TaxJar, TaxCloud automatically calculates sales tax in states where the business is registered. TaxCloud also accounts for tax rate differences related to destination-based or origin-based states.
Economic nexus monitoring: TaxCloud monitors sales information in all states, ensuring businesses understand when they are about to reach the state’s economic nexus threshold. This also triggers the need for the business to register for a sales tax permit or license with the state.
Automated tax reports and filing: Businesses can create sales tax reports, helping them assess sales activity and sales tax information in each state. In addition, automatic filing options simplify the final step of the sales tax process.
TaxJar vs TaxCloud: Understanding guarantees
Filing and reporting accuracy is crucial to compliance. Only TaxJar offers a published guarantee that provides businesses with assurance of remediation in instances where the software results in an error with accuracy (or filing).
TaxJar accuracy and filing guarantees
TaxJar offers an accuracy guarantee and a filing guarantee for businesses using the platform.
TaxJar’s accuracy guarantee provides that if a result returned by the system results in an audit, TaxJar covers any outstanding sales tax interest and penalties.
This accuracy guarantee requires that business set up TaxJar properly (when the inaccuracy occurred), that the business notifies TaxJar within 14 days, and that the business also allows TaxJar to work with the state taxing authority. Businesses also should offer reasonable cooperation to limit losses after the audit filing.
In addition, TaxJar also offers a filing guarantee. If TaxJar fails to submit a filing on time, TaxJar will provide a reimbursement for filing costs and cover interest or penalties as a result of the late filing.
Businesses must understand that the guarantees provided by TaxJar do not cover instances where the business provided inaccurate sales data, failed to properly set up the system, or submitted inaccurate information related to AutoFile or bank account data.
TaxCloud: Remediation on a case-by-case basis
TaxCloud does not offer a standard or published guarantee for accuracy and filing. While the company may reimburse penalties, interest, or other charges related to errors, this is not a guarantee.
TaxCloud explains that reimbursements are decided on a case-by-case basis.
TaxCloud vs TaxJar: Ease of integration
Both TaxCloud and TaxJar offer integrations with numerous e-commerce platforms. These seamless integrations enable businesses and remote sellers to improve their tax compliance and simplify their sales tax processes.
Integration with popular e-commerce platforms
TaxJar integrates with many popular e-commerce platforms, allowing online businesses to sync their sales transactions with TaxJar. These integrations allow remote businesses to monitor their sales tax activity and accurately apply the appropriate tax rate to each sale.
TaxJar integrates with 47 platforms, including: Amazon, BigCommerce, Ebay, Ecwid, Etsy, Magento, PayPal, QuickBooks, Shopify, Square, Squarespace, Walmart, and Woo.
TaxCloud also integrates with numerous e-commerce platforms, including Shopify, BigCommerce, Odoo, QuickBooks Online, WooCommerce, Magento, Adobe Commerce, Etsy, Amazon, Ebay, Walmart, and several others.
| Integration | Available on TaxJar? | Available on TaxCloud? |
| Amazon | ✔ | ✔ |
| BigCommerce | ✔ | ✔ |
| Ebay | ✔ | ✔ |
| Ecwid | ✔ | |
| Etsy | ✔ | ✔ |
| Magento | ✔ | ✔ |
| PayPal | ✔ | |
| QuickBooks | ✔ | ✔ |
| Shopify | ✔ | ✔ |
| Square | ✔ | |
| Squarespace | ✔ | |
| Walmart | ✔ | ✔ |
| WooCommerce | ✔ | ✔ |
| Odoo | ✔ | ✔ |
| Adobe Commerce | ✔ |
Custom integration capabilities
Both TaxJar and TaxCloud can support custom integrations. TaxJar encourages companies that are developing personalized integrations to use their developer guides and API documentation, ensuring developers have the information they need.
TaxCloud also allows for custom integration and encourages developers to use their developer guide.
TaxCloud vs TaxJar: User experience
Which platform offers the best user experience? Both offer a unique platform interface.
Platform interface comparison
TaxJar features a more modern and streamlined design structure, focusing on simple functionalities that are easy to navigate.
TaxCloud’s interface has been noted as being more “budget-friendly,” and users may find a more basic style.
Pricing structure: TaxCloud vs TaxJar
TaxJar and TaxCloud offer varying pricing structures. While TaxCloud offers a free option, the platform may also be more cost-prohibitive as businesses demand more features.
TaxJar pricing structure
TaxJar offers two plans: Starter and Professional. Your monthly cost is determined by your business’s order volume. The Starter plan (starting at $19/month) allows for three data import integrations and email support — ideal for marketplace sellers.
The Professional plan (starting at $99/month) offers up to 10 data integrations and includes an archive of historical tax information. All Professional plan members receive dedicated onboarding support, and Professional plan members on a 25K or higher tier receive a dedicated Customer Success Manager.
TaxJar has no hidden fees or overages and offers pricing that scales with business growth. TaxJar also offers a free 30-day trial to allow customers to see how TaxJar works before starting a paid plan.
TaxCloud pricing structure
TaxCloud offers a free plan for small businesses that only need to monitor nexus and pay sales tax in their home state.
TaxCloud also offers a Starter Plan for $199/year, recommended for businesses and sellers that need multi-state support. Their Premium plan is $799/year, ideal for real-time tax support, SST credits, and multi-state support.
TaxCloud has been noted as having hidden fees, as some users reported changes in the pricing structure. For example, while TaxCloud offers a free plan, some users report that fees are now charged for basic access. Businesses should read TaxCloud’s fee schedule to understand charges and fees.
Support and customer service
Both TaxJar and TaxCloud offer different approaches to customer support and service. Some plans may include a designated support member, while other plans may encourage users to seek help via an online resource.
TaxJar stands out with dedicated email and phone response times, and is committed to providing timely customer support. Recently, TaxJar was awarded the Best Support G2 badge, based on customer reviews.
Online support
TaxCloud offers chat support. TaxJar provides email and chat support, in addition to a full library of online resources.
Phone support
Both TaxJar and TaxCloud offer phone support. TaxJar Professional users on a 1K and higher tier plan have access to phone support, allowing customers to request a call.
Educational resources
TaxJar provides extensive educational resources for businesses, with free state sales tax guides available online and additional resources and guides available in the Resource section of the site. In addition, TaxJar provides a Knowledge Base with additional educational materials about integrations, a Sales Tax 101 guide, sales tax registration information, and much more. Additionally, TaxJar sends out a monthly sales tax newsletter to keep sellers up-to-date on all things tax compliance.
TaxCloud offers state sales tax guides, webinars, and classes.
TaxJar: Accurate, on-time sales tax automation guaranteed
Businesses that want to streamline their sales tax processes can choose the comprehensive capabilities of TaxJar, ensuring they remain compliant across all states where they have nexus. TaxJar is the leader in sales tax automation and provides clients with guarantees for both accuracy and timeliness of filings.
While TaxCloud offers a free plan, some users have reported that it lacks robust functionality. Businesses who are budget-conscious also may find the yearly fees for the high-end plan to be too expensive. TaxCloud manages errors related to timeliness and accuracy on a case-by-case basis.
Interested in learning more about TaxJar? Try TaxJar for free and find out how it can simplify your business’ sales tax processes.
