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Mar 12, 2025 • 16 minute read
Adobe Commerce Tax Extensions for US Merchants
With changing rates and regulations, sales tax compliance is a complex problem for merchants using Adobe Commerce. While the platform offers built-in tax settings, it lacks automation and filing support. Fortunately, sales tax extensions within the Adobe Commerce marketplace, built by both official and third-party companies, can offset these processes. This guide reviews the best Adobe Commerce sales tax plugins to help businesses streamline tax calculations, reporting, and compliance.
Written by David Braasch Reviewed by Alex Lamachenka

Adobe Commerce Sales Tax Plugins Compared

Sales tax compliance is a critical challenge for e-commerce businesses. When done manually, it becomes a time-consuming and error-prone process. In the US, evolving nexus laws and varying regulations across thousands of jurisdictions make this task even more difficult, requiring businesses to track where they owe taxes and keep up with changing rates.

For businesses selling with Adobe Commerce, the problem is twofold. While Adobe’s platform offers a flexible and scalable experience for online brands, it only provides basic tax settings that require constant management and manual upkeep.

Because the platform lacks automation options, this information must be managed by hand. In order to stay compliant, merchants are required to continually monitor tax laws and make manual adjustments to their settings. For companies operating in multiple states, this quickly becomes a major burden.

It’s also a problem when brands are selling across multiple storefronts, like their Adobe Commerce website, Amazon, and social media. In this scenario, Adobe becomes one part of a greater whole, where tax calculations need to be managed across multiple channels.

To address these challenges, many Adobe Commerce users rely on third-party sales tax plugins that automate calculations, track nexus obligations, and handle reports or filing.

In this article, we’ll take a closer look at the available tax solutions and which plug-in might make the most sense for your business.

Why Brands Using Adobe Commerce Need a Sales Tax Extension

Adobe Commerce provides built-in sales calculation tools, but they require manual setup and ongoing maintenance.

While the platform allows businesses to assign tax classes, configure tax zones, and apply basic rules, it doesn’t offer the automation required to track nexus obligations or keep tax rates up to date. All of that, in addition to filing and remittance, must be handled separately by the business.

Using built-in settings, Adobe Commerce allows users to:

While these features might be enough for brands with very simple tax requirements, they lack the flexibility needed for companies selling across multiple states or handling frequent tax rate changes.

That’s a big problem for US merchants who want to sell at scale. Tax rates change frequently, and merchants selling across multiple states need to know as rates and obligations evolve. Digital products, like SaaS services and subscriptions, are taxed differently from state to state. Physical products may even vary by taxability code, depending on how the jurisdiction interprets its function or use case.

On top of that, Adobe Commerce doesn’t update rates automatically and offers no tax reporting or filing assistance. The platform will collect sales tax based on manually specified rules, but brands must generate their own tax reports and file returns separately. Usually, this requires merchants to seek a third-party solution or track those changes by themselves or hire a dedicated tax accounting firm.

While the platform offers other attractive features, it’s simply not designed for tax compliance at scale. Most merchants rely on third-party plugins to alleviate headaches and streamline tax compliance.

Selecting Your Sales Tax Tool

Sales tax compliance isn’t just about applying the right rate at checkout. It’s about staying ahead of changing regulations, tracking where taxes are owed, and ensuring that filing is timely and accurate. When brands don’t have an adequate solution, handling these obligations becomes a risky, messy, and inefficient process that can incur steep penalties from regulators.

The right sales tax tool should do more than rate calculations. It should integrate with Adobe Commerce, automate compliance tasks, and provide the reporting necessary to keep tax obligations in check.

Here are a few key features to consider when selecting the right tax solution for your business:

  • Automated tax rate updates. These features ensure accurate, real-time tax calculations across all jurisdictions without the need for manual adjustments or data uploads to Adobe Commerce (or other sales platforms).
  • Nexus tracking and alerts. Capable sales tax tools can monitor when you’re approaching economic nexus thresholds and notify you as those obligations take hold.
  • Filing and remittance support. Many providers can help you file tax forms and automatically remit payments to the appropriate governmental authorities, reducing the administrative burden associated with these tasks.
  • Product taxability and exemptions. A good tax tool supports taxability codes and product categorization while offering a way to manage exemption certificates for tax exempt entities.
  • Detailed reporting and audit readiness. Strong solutions can provide clear data and reporting for tax returns so that you have a record of what taxes were paid and how rates were calculated. Some solutions even offer additional support during audits.

Choosing the right sales tax solution can save countless hours while reducing the risk of errors and non-compliance. Rather than manually updating tax tables and tracking regulatory changes, brands can focus on growth while ensuring that tax obligations are met accurately and on time.

However, each business is different, and some need more comprehensive solutions than others. In the next section, we’ll compare the best Adobe Commerce sales tax plugins so that you can find the best solution for your unique needs.

Best Sales Tax Tools for Adobe Commerce

If you’ve settled on Adobe Commerce as your e-commerce platform, you’ll need a compatible, on-platform solution. Fortunately, Adobe lists all integrations in one place, so you can easily check compatibility.

In this section, we’ll compare the best sales tax plugin solutions for Adobe Commerce. Keep in mind that each solution on our list is a separate service, and you may need to purchase a plan or subscription before integration is possible.

1. TaxCloud

TaxCloud is a comprehensive sales tax automation solution designed specifically for US merchants. It integrates with Adobe Commerce to provide real-time tax calculations, nexus tracking, and automated filing and remittance for jurisdictions across the United States.

Unlike tax solutions that focus solely on calculations, TaxCloud takes a full-service approach to compliance, helping businesses collect, file, and remit sales tax with ease. This is ideal for Adobe Commerce users, since TaxCloud offsets the natural gaps within Adobe’s tax systems. (Try it for yourself with a free 30 day trial.)

One of TaxCloud’s biggest advantages is its affordability and compliance-first approach. The balance of price and functionality make it a great choice for small- to mid-sized businesses that want rock solid compliance without scaling costs and percentage-based fees.

TaxCloud also offers integrations with multiple e-commerce platforms, allowing teams to accumulate sales data outside of Adobe Commerce to track earnings across multiple platforms and consolidate that information into a single, unified interface.

Best features

Main limitations

  • Focused on US tax compliance, TaxCloud doesn’t provide solutions for VAT or GST handling.
  • Fewer pre-built integrations for ERP and accounting programs, though API options and manual CSV upload are available for custom connections.
  • Lacks complex customizations that may be required for large enterprises with highly complex tax needs.

Important details

2. Avalara AvaTax

Probably the most well-known product within the Avalara ecosystem, Avatax automates real-time tax calculations at checkout based on location, product type, and taxability rules.

However, it’s strictly a calculation engine. While AvaTax integrates with other Avalara services, it doesn’t natively handle filing, remittance, or exemption management by itself. To do that, you’ll need access to other Avalara solutions, like Avalara Returns and CertCapture.

While this might seem off-putting (especially to smaller brands), it also means that AvaTax doesn’t do all the work itself. The software integrates with Adobe Commerce and other e-commerce platforms, as well as ERP and accounting solutions, to ensure tax accuracy across all business systems.

AvaTax can also calculate VAT, GST, and other non- US taxes, making it a great fit for global brands with sales in multiple countries.

Best features

  • Global tax calculations ensure compliance both in the US and abroad.
  • Over 1,200 partner integrations allow AvaTax to connect with popular business systems and tech stacks.
  • Self-service setups help brands get up and running fast with simplified onboarding and intuitive interfaces.

Main limitations

  • Volume-based pricing and additional services put this service out of reach for many smaller organizations.
  • Complex setups require manual setup, which may include developer support during the configuration process.
  • Additional Avalara services may be required in order to achieve full compliance.

Important details

3. TaxJar

The first of two Stripe-based integrations on our list, TaxJar is a tax compliance solution that integrates seamlessly with Adobe Commerce and other e-commerce platforms. It’s a popular choice for online retailers looking to simplify tax calculation, reporting, and filing.

One of TaxJar’s standout features is its AutoFile service, which automates the process of submitting sales tax returns and remitting payments to the correct tax authorities. The platform also offers an API-based tax calculation engine that operates in real time to apply correct tax rates at checkout.

Additionally, TaxJar features strong reporting capabilities, including jurisdiction-level sales tax reporting, exempt item taxability reports, and special district breakdowns. These features are consolidated into an omnichannel dashboard and exportable via CSV file for use in accounting software and other solutions.

However, similar to TaxCloud, this platform is primarily focused on US markets and doesn’t provide robust features for international compliance.

Best features

  • AutoFile for automated tax remittance ensures timely filing and payment of sales tax in supported states.
  • Real-time tax calculations via API provide accurate tax rates at checkout across multiple jurisdictions.
  • AI-based taxability recommendations allow brands to save hours by automating tax code designations.

Main limitations

  • Limited international support, as TaxJar focuses primarily on US state sales tax rather than VAT and GST compliance.
  • AutoFile varies by state, so businesses operating in multiple states may still need to file manually in certain locations.
  • Painful support experience can leave customers high and dry when they help the most.

Important details

4. Stripe Tax

Stripe Tax is built directly into Stripe and is designed to automate sales tax, VAT, and GST calculations for businesses processing payments through the Stripe platform. Unlike the other solutions on our list, Stripe Tax isn’t a standalone solution and only integrates with the systems and infrastructure provided by Stripe.

As you might guess, it’s a great option for merchants who already use Stripe for payment collection. It’s easy to use, requires minimal setup, and can automatically detect customer locations to apply the correct tax rates at checkout. Stripe Tax can also track economic thresholds across multiple jurisdictions, helping businesses stay compliant as they scale.

Unfortunately, because Stripe Tax is integrated with Stripe, this tax solution can only capture transaction data captured from Stripe. Unless every transaction is captured through Stripe’s payment processing, merchants will miss critical data required to report and remit accurate sales tax.

On top of that limitation, Stripe Tax only automates sales tax calculations and reports those earnings. It won’t help handle tax filing or remittance, requiring businesses to file their own returns or use a separate service to stay compliant.

Best features

  • Seamless Stripe integration allows businesses to automate tax calculations without additional software or setup.
  • Tax calculations for both US and international sales are available, and Stripe Tax calculates the rates in real time.
  • Built-in economic nexus tracking monitors where sales are transacted and alerts brands when tax obligations take hold.

Main limitations

  • Stripe-only compatibility makes this solution unsuitable for brands using multiple payment processors or e-commerce platforms.
  • No automated tax filing and remittance means that businesses will need to file manually or work with an additional service.
  • Limited customization for tax rules forces users to rely on pre-set codes that may not fit unique use cases.

Important details

  • Pricing: Pay as you go ($0.5% per transaction or $0.5 per API call); Annual (starts at $1080/year). All fees are applied on top of Stripe’s standard processing fee.
  • Reviews: Stripe Tax is rated at 4.3 of 5 stars on G2 with 3 reviews.
  • Link: Marketplace

5. Vertex Tax Links

An enterprise-grade tax automation solution, Vertex is designed for businesses that need scalable, end-to-end compliance. The platform provides comprehensive tax management, including automated filings, exemption certificate handling, and global tax support for VAT and GST.

Vertex’s feature set makes it a great choice for large, complex businesses like manufacturers and retailers who sell a wide range of products over a broad area. The app integrates seamlessly with Adobe Commerce, ensuring that tax calculations are accurate and tailored to specific locations. This makes it a great choice for specialized tax needs.

However, Vertex is a more advanced solution than most other sales tax tools found in Adobe Commerce. The setup process is longer, especially when compared to other tools on our list. While it makes sense for international brands with complex needs, the service incurs high costs and takes the most time to get up and running in exchange for offering strong, long-term versatility.

Best features

  • Industry-specific tax rules and configurations allow businesses to apply specialized tax solutions for highly complex industries.
  • Broad integration options allow brands to sell through multiple channels (CRM, e-commerce, etc.) while Vertex handles compliance.
  • Global tax support for VAT, GST, and US sales tax make Vertex a strong choice for global brands.

Main limitations

  • Slower setup and onboarding due to the number of available configuration options.
  • High pricing when compared to mid-market solutions may make this solution less appealing to smaller merchants.
  • Full customization may require IT or developer resources as setup may need to be tailored to a specific business.

Important details

  • Pricing: $5,000+ / year. Pricing based on usage, revenue tier, rate file downloads, and more.
  • Reviews: Vertex is rated at 4.3 of 5 stars on G2 with 308 reviews.
  • Link: Marketplace

Bonus: Custom APIs for Sales Tax Compliance

For businesses with unique tax needs or those operating across multiple platforms, custom sales tax APIs can offer a fully tailored tax compliance solution.

Rather than relying on pre-built integrations, businesses can leverage APIs from providers like TaxCloud, Avalara, Vertex, or even their own proprietary system. Using this approach, it’s possible for brands to automate tax calculations, track compliance, and manage exemptions in ways that a turnkey integration may not support.

Particularly for companies with complex sales models and marketplace operations, API solutions provide a level of flexibility without the need for brands to conform to another way of doing business. Because Adobe Commerce can connect to custom APIs, it’s possible for companies on the platform to engineer their own solution to tax tracking and compliance.

The downside? Building and maintaining a custom API solution requires development resources and a dedicated budget. Connecting to APIs also incurs its own costs, which can vary greatly based on what the custom solution is intended to do and how many API calls it needs to make.

Best features

  • Full customization and control for tax calculation allows businesses to define tax rules that make sense for them.
  • Multi-platform integration options enable businesses to connect tax compliance systems across their entire tech stack.
  • Greater control over tax data and compliance means that businesses can fine-tune their approach to taxes and reporting.

Main limitations

  • Requires developer expertise, as businesses must build and maintain API connections to ensure accuracy and compliance.
  • Ongoing maintenance and updates are necessary to maintain the API, especially as tax laws or third-party APIs are updated.
  • Lack of built-in filing and remittance features means businesses may still end up using external providers for returns and payments.

Which Adobe Commerce Sales Tax Plugin is best?

Choosing the right plugin for Adobe Commerce is less about picking an extension and more about finding a comprehensive tax compliance solution that aligns with your business needs. That’s because almost every solution on the market will require an additional service subscription.

We’ve worked backwards by using existing integrations to qualify what brands are most viable with Adobe Commerce, but factors like multi-platform support will still be an option for companies selling through other services.

Ultimately, the best solution depends on your business model, sales volume, and compliance needs. Every tool we’ve covered has unique strengths and limitations, with most serving specific market niches based around company size and estimated transaction volume.

Here’s our take:

  • Brands focused primarily on the US market: TaxCloud offers the most cost-effective and robust solution.
  • Larger brands with a global presence: Vertex or Avalara are built to handle compliance at an international scale.
  • Businesses using Stripe (and only Stripe): Stripe Tax is the simplest solution, despite its limited flexibility.

While having an Adobe Commerce extension is useful, it shouldn’t be the only factor in choosing a tax solution. At the same time, the more your business relies on the Adobe ecosystem for sales, the more relevant these extensions will become to long-term success.

Streamline Sales Tax Compliance with Adobe Commerce and TaxCloud

Collecting tax revenue and staying compliant with government regulations doesn’t have to be complicated or time-consuming.

TaxCloud is built to help businesses stay on top of sales tax requirements without the extra hassle. The system adjusts as laws change, ensuring accurate tax collection across 13,000+ US tax jurisdictions. Brands simply need to sell products and services as normal while TaxCloud handles the rest.

When integrated with Adobe Commerce, TaxCloud can automate tax calculations, track nexus obligations, and simplify filing and remittance inside a single platform. Our integrations also extend to other e-commerce solutions, so multi-channel brands can consolidate tax monitoring and compliance into a single, unified dashboard.

Come see it for yourself. Book a demo with our product specialists or start a 30-day free trial to learn how TaxCloud can work for your business.

FAQ

What’s the difference between Adobe Commerce and Magento?

Adobe Commerce is available in three different versions:

  • Adobe Commerce Cloud is a fully hosted, enterprise-level solution that includes e-commerce features, cloud hosting, and more.
  • Adobe Commerce On-Premise is a self-hosted solution with more control and customization, but it requires businesses to manage their own servers.
  • Magento Open Source is a free, community driven version that offers basic e-commerce functionality but lacks many of the built-in features found in Adobe Commerce.

Magneto was acquired by Adobe in 2018 and folded into the Adobe platform soon after. Adobe Commerce — formerly Magento Commerce — is the paid solution.

While Magento Open Source is still free to download and use, you’ll need to purchase auxiliaries like hosting, extensions, themes, and development. Magento still enjoys a strong community and help can be found over on the Magento Forums.

The tax integrations we’ve covered offer integration options with Magento Open Source, but they may have restricted functionality or required additional configuration.

How do I install a sales tax plugin for Adobe Commerce?

You’ll follow the same steps that you’d use to integrate with other extensions found in the Adobe Commerce Marketplace.

  1. Find, download, and install the correct plugin.
  2. Enable the extension in your Admin Panel.
  3. Sign in to the third-party service and/or setup API connectors.
  4. Test your checkout process.

The precise setup instructions will vary slightly, depending on how the integration you choose connects with Adobe Commerce. If an API key is required, you’ll generate that within your tax compliance software and copy/paste the key into your Adobe backend interface.

Some plugins offer additional setup support or guided onboarding, so it’s worth checking the documentation of your intended solution for any best practices.

Does Adobe Commerce have built-in sales tax calculations?

Yes, but it’s a limited solution and requires manual configuration.

Using only Adobe Commerce, users can set up tax zones and rates manually, based on geography or product tax class. Merchants can also import rate tables via CSV, but these need to be compiled manually and don’t update automatically when tax laws change.

Based on the above information and any rules put in place, Adobe Commerce will capture tax at checkout.

Unfortunately, this approach requires manual effort and leaves huge gaps in the compliance process. Tax rates don’t update automatically, so companies have to stay informed on pending tax changes in every jurisdiction where products and services are sold. Adobe Commerce also doesn’t track economic nexus thresholds or assist with filing and remittance, so brands need to handle this on their own.

Can Adobe Commerce handle multi-state sales tax calculations?

Sort of. Adobe Commerce allows businesses to set up tax rates for multiple states and jurisdictions, but the rates don’t update automatically.

These rates need to be uploaded manually, and any tax rules remain static once updated, so changes need to be made by hand every time a rate changes.

For merchants selling across multiple states, this becomes a major compliance burden. Missing a single tax rate change can lead to under- or over-collecting taxes, exposing the business to audits or fines.

Because of this, most businesses use a third-party tax tool like TaxCloud to automate rate updates, track nexus requirements, and simplify filing.

What is the difference between Adobe Commerce’s tax settings and third-party tax tools?

The key differences come down to automation and convenience.

Adobe’s built-in tools may be a great fit if you only sell in one state or have very simple tax requirements. However, as businesses grow and acquire customers over a much broader area — common for e-commerce brands — Adobe’s tax toolkit quickly becomes unworkable.

On the other hand, third-party tools work to automate this process by tracking tax laws and updating rates automatically, monitoring nexus thresholds on a per-state basis, and providing better reporting options. Most solutions also automate the filing and remittance process, making compliance easier.

It’s possible to do all of this manually or with the assistance of a dedicated accounting firm, but automation solutions are often faster, easier, and more accurate.