Mar 21, 2025 • 7 minute read

Sales Tax Solutions That Integrate With Magento

Managing sales tax compliance on Magento stores can be challenging for online sellers operating in multiple states. Automating tax collection and reporting is crucial to avoid violations and reduce manual errors. In this guide, we’ll compare the best sales tax extensions, plugins, and tools for Magento, based on features and costs.

Written by Alex Lamachenka

7 Best Magento Sales Tax Tools and Extensions

Magento, now part of Adobe Commerce, is one of the most powerful ecommerce platforms available today. However, for online sellers operating in multiple states, managing sales tax compliance can be a serious headache – even for Magento users.

Between keeping up with tax regulations and juggling different jurisdictional requirements, automating tax collection and reporting is crucial for ecommerce businesses.

That’s where dedicated sales tax solutions come in. These tools integrate directly with Magento and Adobe Commerce, helping businesses avoid expensive sales tax compliance violations, and reducing the risk of manual errors.

In this guide, we’ll compare the best sales tax solutions that integrate with Magento, highlighting their key features, pricing, ease of use, and more.

While each option has its strengths, TaxCloud stands out as the most robust and cost-effective choice for Magento users. Let’s see why.

1. TaxCloud

TaxCloud is a leading automated sales tax compliance solution, specifically designed to handle complex tax regulations across the United States.

It provides real-time tax calculations, exemption management, and streamlined tax filing services, making it an ideal choice for Magento merchants.

TaxCloud integrates seamlessly with Magento Open Source and Adobe Commerce. You’ll never need to stress over the accuracy of sales tax calculations at checkout.

Our integration process requires minimal setup and allows businesses to automate tax collection, reporting, and filing without extra hassle. Magento users can activate TaxCloud’s integration directly from their dashboard.

Key Features

Real-Time Sales Tax Calculations – Automatically applies the correct tax rate for every jurisdiction in the U.S.
Exemption & Compliance Management – Supports tax-exempt transactions and keeps track of compliance records, ensuring businesses follow regulatory requirements.
Automated Filing & Remittance – Handles tax filing and payments for businesses in multiple states, removing the manual burden and allowing merchants to focus on more valuable strategic tasks.
Audit Protection – Keeps businesses prepared for potential audits by maintaining detailed transaction histories.

Pricing

TaxCloud offers free tax calculations for businesses enrolled in the Streamlined Sales Tax (SST) program in member states – only charges for filing and remittance services apply. Pricing starts at $19 per month, with fees based on the number of transactions and states where a business collects tax. This makes TaxCloud one of the most cost-effective options available.

Best For

Small to mid-sized businesses and enterprise-level merchants looking for affordable, automated tax compliance with minimal manual intervention. Businesses operating across multiple states will particularly benefit from TaxCloud’s extensive coverage.

2. Avalara

Avalara is a well-known tax automation platform offering sales tax compliance solutions for businesses of all sizes. It provides extensive tax jurisdiction coverage and supports international tax compliance, making it a preferred choice for large enterprises.

Avalara integrates with Magento and Adobe Commerce through Avalara AvaTax, allowing businesses to automate tax calculations at checkout.

However, setup can be complex, requiring more configuration than some competitors.

Key Features

Real-Time Sales Tax Calculations – Applies tax rates based on location and jurisdictional rules.
Exemption & Compliance Management – Tracks exemptions and maintains audit-ready records.
Automated Filing & Remittance – Submits tax returns and payments to tax authorities on behalf of businesses.
International Tax Support – Covers tax compliance beyond the U.S., useful for global eCommerce.

Pricing

Avalara’s pricing for AvaTax is customized based on factors such as transaction volume, number of integrations, and specific services required. Businesses needing tax return filing services can add Avalara Returns to their subscription, with costs increasing based on the number of returns and jurisdictions involved.

Best For

Larger businesses and enterprises with complex, multi-state tax compliance needs that require a high degree of automation.

3. Vertex

Vertex is a tax technology solution designed for businesses that need enterprise-level tax automation. It offers cloud-based tax calculations, compliance reporting, and exemption management, but its complexity may deter smaller businesses.

Vertex integrates with Magento via Vertex Cloud, providing automated sales tax calculations for businesses selling across multiple states. However, some users report a steep learning curve when setting up the integration.

Key Features

Real-Time Sales Tax Calculations – Ensures compliance with up-to-date tax rates.
Exemption & Compliance Management – Supports tax-exempt purchases and audit tracking.
Automated Filing & Reporting – Helps businesses manage tax submissions and reporting.
Enterprise-Grade Scalability – Designed for high-volume, multinational businesses.

Pricing

Vertex pricing is custom and varies based on business size and complexity. Enterprise-level solutions typically start at $5,000 per year, making it one of the most expensive options.

Best For

Enterprise-level businesses that require robust, highly customizable tax automation across multiple jurisdictions.

4. Sovos

Sovos specializes in tax compliance and regulatory reporting. It offers a range of tax solutions, including sales tax automation for ecommerce sellers.

Sovos integrates with Magento through Sovos Tax to automate tax calculations and ensure compliance. However, some users find the setup process less intuitive than solutions like TaxCloud or Avalara.

Key Features

Real-Time Sales Tax Calculations – Ensures businesses apply accurate tax rates.
Exemption & Compliance Management – Helps businesses manage exemption certificates.
Automated Filing & Remittance – Assists with tax submissions and reporting.
Compliance & Audit Protection – Focuses on regulatory updates and risk reduction.

Pricing

Sovos offers custom-quoted pricing for its tax compliance services, with annual costs varying based on specific business requirements. While some businesses may spend around $2,000 per year, others report much higher expenditures.

Best For

Businesses that prioritize compliance and audit readiness over affordability.

5. TaxJar

TaxJar is an easy-to-use tax automation platform focused on small and mid-sized businesses. It offers tax calculations, reporting, and automated filings.

TaxJar integrates with Magento and Adobe Commerce, but it’s primarily built for smaller-scale operations, making it less suitable for high-volume enterprises.

Key Features

Real-Time Sales Tax Calculations – Applies tax rates automatically based on location.
Exemption & Compliance Management – Tracks and manages tax-exempt transactions.
Automated Filing & Remittance – Files and remits taxes on behalf of businesses.
Simple Dashboard – User-friendly interface with easy reporting.

Pricing

TaxJar’s Starter plan starts at $19 per month for up to 200 orders, including four free AutoFile credits per year, with additional filings costing $30 each. In contrast, TaxCloud offers a Starter plan at $199 per year (approximately $16.58 per month) for up to 1,200 orders annually (or 100 orders per month), with filing services starting at $39 per return, plus possible surcharges for specific states.

Best For

Small to medium-sized businesses that want a simple, budget-friendly tax solution without complex enterprise features.

6. Stripe Tax

Stripe Tax is an automated tax compliance solution built into the Stripe ecosystem. It simplifies tax calculations, collection, and reporting for businesses processing payments through Stripe.

With support for U.S. sales tax, VAT, and GST in 30+ countries, Stripe Tax is a strong option for e-commerce and SaaS companies that already use Stripe’s payment processing services.

Stripe Tax is not a native Magento integration but can be connected through Stripe’s payment gateway for automated tax calculations at checkout.

However, businesses using Magento will need additional configuration to fully integrate Stripe Tax’s reporting and filing features, making it less seamless than a solution like TaxCloud.

Key Features

Automated Tax Calculation – Applies the correct sales tax, VAT, or GST at checkout for transactions in supported regions.
Seamless Stripe Integration – Works directly with Stripe Payments for effortless tax compliance on Stripe transactions.
Basic Compliance Reporting – Provides transaction summaries and tax collection reports for filing purposes.
International Tax Support – Covers tax regulations beyond the U.S., making it useful for global businesses.

Pricing

Stripe Tax charges 0.5% per transaction for U.S. sales tax calculations and 0.4% for international taxes. There are no additional fees for filing, but businesses must handle remittance separately.

Best For

Businesses that already use Stripe for payment processing and need a built-in tax compliance tool. Ideal for SaaS companies, digital goods providers, and international e-commerce sellers.

7. Zonos

Zonos is a tax compliance solution focused on international e-commerce businesses, helping them navigate cross-border duties, tariffs, and sales tax regulations. It ensures accurate landed cost calculations, making it easier for businesses to sell globally without tax-related surprises.

Zonos integrates with Magento and Adobe Commerce through an API and plugin, allowing businesses to calculate duties and taxes in real-time at checkout. However, unlike TaxCloud, it primarily focuses on cross-border tax compliance rather than domestic U.S. sales tax automation.

Key Features

Landed Cost Calculation – Provides customers with total cost estimates, including duties, taxes, and shipping fees.
Customs Compliance – Helps businesses meet international trade regulations with automated HS code classification.
Real-Time Tax & Duty Estimation – Calculates accurate taxes for cross-border transactions.
International Expansion Support – Helps businesses sell globally by ensuring compliance with import/export tax laws.

Pricing

Zonos operates on a custom pricing model based on transaction volume and feature requirements. Businesses must contact Zonos for a quote.

Best For

E-commerce businesses selling internationally that need automated duty and tax calculation tools. Best suited for brands looking to simplify cross-border transactions and customs compliance.

Why TaxCloud Stands Out

When it comes to value, ease of use, and affordability, TaxCloud emerges as the best choice for Magento users. Its seamless integration, real-time tax calculations, and automated compliance features make it the best overall solution for Magento.

With transparent pricing and a focus on U.S. tax compliance, TaxCloud ensures businesses can grow while staying compliant.

For a reliable, cost-effective tax solution, TaxCloud is the clear winner. To learn more about how we can streamline and optimize your sales tax workflows, get in touch today.