TaxJar vs. Avalara

Get the breakdown on how TaxJar wins against Avalara.




Trying to choose between TaxJar and Avalara? Here's a breakdown based on what you really need to know to make an informed decision.

Pricing

Your sales tax compliance solution should come standard with transparent pricing that grows only as your business grows.

TaxJar Avalara
We offer a 30-day free trial on all products. No credit card required. No setup fees, cancellation fees, hidden fees or forced annual contracts. Beware of setup fees, annual contracts and cancellation fees.
Set up an account and get started without speaking to someone in sales or customer support. You’re pushed to talk to a salesperson to get pricing. Who has time for that?
Modern, innovative technology means we can pass on the savings to customers. Confusing and time-intensive implementation. Shouldn’t technology make things easy?
Our calculations start at just $0.02 cents per transaction. Calculations start at $0.20 cents per transaction.
Using Magento? TaxJar offers FREE sales tax calculations for ALL Magento merchants.

TaxJar is a Magento Premier Partner.
No free calculations for Magento merchants. Everything charged as a normal API call.
We offer simple, transparent pricing. We’d link to their pricing, but we can’t find it.
No Annual contracts. We offer monthy plans because we stand behind our service and don't need contracts to keep you as a customer. Annual contracts required (some are multi-year).
Registrations are $85/state, for as many states as you need.

Registration for 20 states would be $1,700
Registration for up to 20 states: $5,000
No setup fees.

For a customer with 20K transactions on TaxJar:
  • Enterprise I: $199/mo for up to 50K transactions
  • World-class support: FREE
  • API and Platform connectors: FREE

Total first year cost: $2,149.20 (or $199 monthly)

Where do we start?

Sample customer cost for 20K transactions:
  • One-time Activation Fee (~$2,360)
  • Annual Connector Fee (~$100-$500)
  • POS Platform Charge (~$150)
  • API Platform Charge (~$150)
  • Annual License ($7,865)
  • Professional Support for Setup and Training (~$1,995)
  • Monthly Billing Fee (10% of total monthly service cost)

Total first year cost ~$12,515.00.

1 Price data shared from actual customers as of 07/2017.

At TaxJar, filing a sales tax return means both remitting your data and your payment. We don't stop halfway.

We file in every US state for $19.95 per return.

Monthly filing fee of $44/return (not including service fees below).

  • 'One-Time Filing Activation Filing Fee' $50
  • 'Monthly Filing Service Fee' of $54

2 Filing fees shared from actual customers as of 07/2017. Filing fees ranged from $44 to $70 per return

It's your money and you work hard for it. If you file on-time with AutoFile, we'll pass along any early filing discounts that you receive from the state.
No filing discounts returned to customers.

How do we offer our service at a lower cost?

We get this question a lot.

In short, we're truly a technology company that is hyper-focused on solving sales tax for businesses. We build the best technology (without shortcuts), and we're in a never-ending pursuit of automation. We've hired the best team to solve this problem, and we don't pay expensive rent.

Instead of raising prices by a whole lot and making it all go away, we learned to embrace the questions as a chance to let folks in on how our low-cost strategy is by design, so here's more on how we do it.

The TaxJar model, which has different tiers based on volume, seemed a far more appropriate way of charging.
Dan Rosenberg, COO of Represent.com
after switching from Avalara's AvaTax to TaxJar

Product Experience

Your sales tax compliance solution should be easy to implement and use, not yet another chore.

We encourage everyone to compare our product to any alternative. That’s why we offer a no-risk 30-day free trial. Sign up and give TaxJar a try right away with no waiting.

Test us out on:

  • Ease of Use – Our setup is simple, intuitive and quick.
  • Speed - Your data is downloaded to TaxJar in minutes to hours rather than days.
  • Customer Support – Try us now. Ask a question!
  • Accuracy – See our Accuracy Guarantee.

With Avalara, you won’t be able to use most products without talking to a salesperson first. If you get far enough to try for free, see the differences in user experience for yourself.

TaxJar Avalara
Free 30-day trial for everyone (no credit card required). Request a quote.
TaxJar was built for multi-channel sellers. We know running your eCommerce business leads you in many different directions to find your customers.

Selling across Amazon & Shopify? No problem.
One system makes it completely automatic to import your data. A few clicks and you're set up for good. No CSVs. Ever.
Selling on Amazon and Shopify?

You'll need to download CSVs, reformat them to match AvaTax requirements, and re-upload them every month. Sound automated?
We were having to export .csv files out of our system, import them into Avalara and then deduplicate the data so we didn’t over report.
Jeff McRitchie, Co-Founder and VP of Marketing at MyBinding (Read More)

Accuracy

If you’re going to trust a company with a vital part of your business, you need to be sure they’ll have your back. Our calculations are over 99% accurate and use modern technology, so they’re a fraction of the cost of our competitors’.

TaxJar Avalara
We offer an Accuracy Guarantee up to 2x what you paid us over the past 12 months. We allow 14 days to notify us in the event of an audit. Offers an Accuracy Guarantee up to 1x the cost of AvaTax. They allow 10 days to notify in the event of an audit.
We offer a Filing Guarantee that ensures we'll file your return on-time, every-time or we'll pay the penalties & interest. We couldn't find their filing guarantee.
We never involve your customers with sales tax disputes. Period. Guarantee includes re-billing your customers for uncollected tax.
I'm a CPA and wouldn’t dream of running my business without TaxJar.
Georgene Harkness

Technology

We all know technology changes rapidly. You deserve a company that does and always will harness the latest technology to save you time and money.

TaxJar Avalara
We're a technology company 100% focused on solving sales tax hassles for businesses.

Our software enables us to file thousands upon thousands of returns without hiring thousands of people.
Acquired companies to offer all kinds of tax services like lodging tax, excise tax, communications tax, etc. No real focus and lots of acquired technologies that are loosely glued together.

Avalara also employs thousands of people to file returns, which in turn increases your costs.
All of our integrations and plugins are built and maintained in-house by eCommerce expert developers. Most integrations outsourced to 3rd parties.
If you're evaluating our API, ask your developer to check out our API documentation. We've built a modern, RESTful API and your development team can be up and running in minutes.
As your developer to give both a try. We know which one they'll prefer.
We also have impressive 99.9% uptime.
We're continually doing load testing and improving our API so that we're able to support large retailers on their largest volume days.
Avalara is committed to providing a minimum service uptime of 99.5%. Certain customers can purchase a higher Service Level Agreement if they need a higher service availability.

We also provide a backup service so your checkout never slows down or breaks.

We offer a 30-day free API trial for all developers. No upfront commitment. Begin making API calls and tests within minutes.

Company

At the end of the day, you just want to work with a company that will solve your problem so you can get back to doing what you do best – running your business.

TaxJar Avalara
At TaxJar, we strongly believe that business owners are highly capable of making their own business decisions. That’s why we're transparent in giving you all the knowledge you need to handle sales tax. We don't say things like "You're going to get audited" to get you to try our product. Known for pushy salespeople and fear-based marketing. Uses scare-tactics like inaccuracy and threat of audits to confuse customers into paying for expensive and unnecessary services.
At TaxJar, we work directly with the Streamlined Sales Tax (SST) states to gather their 24 state tax rules, and utilize them in our interfaces and for filing. There are specific reasons we choose not to be SST certified, as it can require a commitment to collect & remit sales tax in states where merchants would normally not be required to collect.

SST certification is a way for states to collect extra sales tax revenue, at the cost to the customers and burden to merchants so we've made a conscious decision to take the path we have. We are rooftop accurate and file returns for any customer in any of the SST states.
Avalara is a certified Streamlined Sales Tax (SST) compliance service provider.

Ask Around

Let's be honest. We're a little biased. So stop listening to us, and hear what other business owners in your shoes have to say...

TaxJar Avalara
Read TaxJar's customer reviews on G2 Crowd. Read their customer reviews on G2 Crowd.
Employees know the real story. Read our company reviews on Glassdoor. Find out what's going on inside on Glassdoor.
We don't have a Yelp page, because we don't have a physical location (More about our remote culture). Yelp Reviews from their customers tell their local story.
Selling on a specific channel? Take a look at what customers think of TaxJar on Amazon, Shopify, & Magento. Read what customers think on Amazon, Shopify (not found), & Magento.

You be the judge. Try a 30-day free trial of TaxJar today.