How to Find Sales Tax Rates

Sales tax. You have to collect it from your customers, and how much you need to collect and when and where you need to collect it varies. With more than 13,000 sales tax jurisdictions in the U.S., knowing how to find the right sales tax rates can seem like the stuff of nightmares. 

But it doesn’t have to be. Sales tax software makes it easy to find sales tax rates and ensures you charge your customers the right amount.

What’s Usually Subject to Sales Tax?

Part of finding the right sales tax rate involves knowing the 4 W’s when you calculate and collect tax:

  • What: What’s taxable can vary by jurisdiction. Some states don’t apply sales tax to clothing or other necessities while others do. In some jurisdictions, there’s no sales tax on digital products, like music downloads or e-books.
  • Where: Where the buyer lives also influences the sales tax rate, particularly if you have nexus in their state.
  • When: Some jurisdictions have sales tax holidays, during which certain products are exempt from sales tax.
  • Who: In some states, nonprofit organizations and government agencies are exempt from paying sales tax. Others may be exempt from tax if they intend to resell the products.

How to Find Sales Tax Rates (the Hard Way)

Calculating sales tax seems fairly simple. You multiply the product price by the jurisdiction’s sales tax rate. For example, if your business is based in Pennsylvania where the sale tax rate is 6% and a PA-based customer buys $50 worth of products from you, $50 multiplied by 6% (0.06) is $3. 

Things get more complex when you sell to customers in other states where you don’t have a physical presence. You’ll need to determine where you have nexus and need to collect tax from your customers. And with sales tax varying across jurisdictions, the process can become complicated.  Mistakes can be costly and time-consuming as well. A simple error could result in a state notice and a potentially hefty fine from a state tax agency.

How to Find Sales Tax Rates (the Easy Way)

Learning the ins and outs of sales tax, then calculating the rates for your business is time-consuming — and we’d bet you have better things to do than manually calculate sales tax on each order. Fortunately, there’s a better way. 

The easy way to find sales tax rates is with TaxCloud. 

Our sales tax software gives you access to Taxability Information Codes (TICs), those ever-changing codes that let you figure out when, where, and how much tax to charge. Our TICs are up-to-date, meaning we’ll automatically calculate and collect sales taxes when applicable

When you set up your store, assign the appropriate TICs to your products. Our sales tax software can then apply the right sales tax rate to orders while accounting for exemptions and sales tax holidays. Everything happens automatically, so you can focus on what matters most to your business, not sales tax.

TaxCloud makes finding sale tax rates a snap. Register today and see how it works for yourself.

The Ecommerce Accounting Tech Stack Your Company Needs to Grow

The right ecommerce accounting tech stack gets your finances in order, helping you avoid a nasty bill from the tax agencies and a lot of headaches. 

Here’s what you need in your financial ecommerce tech stack.

General Ecommerce Accounting Software

Money flows in and out of your company. You need ecommerce accounting software that keeps track of all incomings and outgoings, from sales to marketing spend to inventory fees. 

There’s one big name in accounting software, Quickbooks, but there are other options out there. A big benefit of Quickbooks is the ease of integrating it with other software. A big drawback, particularly for younger ecommerce companies, is its price.

A more budget-friendly ecommerce accounting software option is Wave. It’s free!

Accounts Payable Software

You’ve got bills to pay. You need ecommerce accounting software that streamlines payments so you can keep the lights on and your website online. is one option. It lets you approve and pay invoices automatically. It also has accounts receivable and expense management options to give you a more holistic view of your company’s money in and out. 

Sales Tax Software

Trust us. You don’t want to ignore sales tax, especially when you run an ecommerce company that sells to customers in every state. 

Even if you don’t have a physical presence in a state, you may need to pay sales tax there based on the volume or amount of your sales in a specific jurisdiction. How do you determine your sales tax nexus or financial connection to each jurisdiction?

Ideally, you don’t. Your sales tax software does. Even better, it’ll collect and file sales tax for you. So you can focus on your company’s growth. 

Financial Planning and Analysis Software

What’s in store for your company? If only you had a crystal ball. 

Financial planning and analysis ecommerce accounting software, aka FP&A, doesn’t predict the future, but it comes close. It helps you develop your company’s budgets, review performance and forecast your financial future. 

FP&A software helps you answer big questions like whether you should borrow money. Or, what will happen if your revenues drop or increase by X%? 

FP&A software allows you to test out various scenarios and make informed decisions about your company’s future. 

Ecommerce accounting software options for FP&A include Vena and DataRails. Both are ideal if you use Excel to keep track of your company’s financial data, as they work with your existing spreadsheets.

Want or need to build your company’s ecommerce tech stack from the ground up? Check out our post on the five solutions you need for an ecommerce tech stack

If you’re ready to add sales tax software to your ecommerce accounting tech stack, contact us today to see how TaxCloud can help you calculate, collect and file sales tax across the U.S.

Setting up a Sales Tax Compliant Ecommerce Tech Stack

Selling online makes it easy to grow your customer base and sell more. With the right ecommerce tech stack, you can streamline inventory management, shipping, and payment processing. What often gets overlooked when building the best tech stack for your business is sales tax compliance automation — and if you ignore the sales tax elephant in the room, you’ll likely wake up one day to a bill and nasty notice from a state.

Following a few do’s and don’ts will help you avoid hefty fines and unexpected bills so you can get back to business.

Do: Look for Sales Tax Software That Integrates With Your Ecommerce Tech Stack

Sales tax management should be simple. The best way to simplify your sales tax management is to use software that easily integrates with your current ecommerce tech stack. We’re talking a few clicks, and you’re done. You shouldn’t have to be a computer or accounting whiz to get everything set up.

Do: Make Sure You Calculate and Collect the Right Amount

Unfortunately, sales tax isn’t uniform across the U.S. Some states collect 6 percent, some 8.5 percent and some states don’t collect sales tax at all. Your business’ sales tax obligations can vary by state, based on your sales or transaction volume

Rather than calculating sales tax yourself for each of the sales tax jurisdictions in the U.S., let sales tax software do the math for you. When added to your ecommerce tech stack, your sales tax software will figure out your nexus (or connection to each sales tax jurisdiction), calculate how much tax you need to collect, and collect the tax for you with each sale.

Don’t: Pretend Sales Tax Doesn’t Exist

You can’t be an ostrich about sales tax, no matter how tempting it is to bury your head in the sand. Sales tax generates a considerable amount of revenue for states and municipalities. And those states want their money.

If you don’t pay up, they’ll come for you. And it won’t be pretty.

Don’t: Stress About Your Ecommerce Tech Stack

We don’t mean to scare you—sales tax shouldn’t make you lose sleep at night or cause you to abandon ecommerce altogether.

With the right sales tax software in your ecommerce tech stack, you don’t have to stress or fret about collecting, filing, or paying tax.

Do: Use TaxCloud

To avoid getting on the wrong side of the tax person, you need to do three things: calculate, collect, and file sale tax correctly. TaxCloud does all three for you. We like to say we eat sales tax for breakfast because we’re tax geeks and sales tax is what keeps us going. 

We created our sales tax software for growing companies and made it easy. While you can set up and use TaxCloud independently, we also have a team of TaxGeeks standing by, waiting to assist you however they can. 

Sign up for TaxCloud today and get your ecommerce business set up for success.

Sales Tax Software: Calculate, Collect, and File The Right Way

When it comes to sales tax, it’s pretty simple: States and local jurisdictions want to be paid. Because of a little thing called economic nexus, your online business may need to pay sales tax in a state you have no physical presence. Luckily, sales tax software makes it easier than ever for online stores to collect the right amount of sales tax and to file state sales tax returns on time.

If you’re losing sleep over tax, rest assured that sales tax software will help you correctly calculate, collect, and even file your tax returns. Let’s take a look at how it works.

Sales Tax Software Helps You…

Calculate Sales Tax

Sale tax rules vary by state, and some cities and municipalities have their own rules to complicate things. In the U.S., there are more than 11,000 sales tax jurisdictions.

That’s a lot to keep track of. But don’t worry, your sales tax software does it all for you. It calculates the tax you need to collect when a person from say, New York City, orders from your store. It figures out the right amount based on your economic nexus and the product you’re selling. 

Collect Sales Tax

You need to know how much tax you’re supposed to collect. You also want to ensure the appropriate amount is collected with each sale. Sales tax software does it for you. It’ll tack on an extra 6% to a sale from Pennsylvania or 7.25% to a sale from California.

Streamline Tax Filing

Each state and local jurisdiction has its own sales tax filing rules. All those returns will add up if you’re selling across the country. Sales tax software helps you keep cool and get the returns on time, every time.

The software provides a report you can use to streamline filing at the right time. 

Bonus: Sales Tax Software Can File and Remit Tax for You

Don’t want to worry about filing? Software can take that on for you. With TaxCloud’s enhanced services, we’ll automatically file sale tax returns in our member states and remit payments on your behalf. 

In the states where we file on your behalf, you’re indemnified in case there’s an issue. We also respond to state sales tax notices for you, so you don’t have to stay up at night stressing about an audit. 

Speaking of audits, the best way to avoid one is to make sure you get the three steps in the sale tax process down pat: Calculate, collect, and file. When you pay the right amount at the right time, you won’t wake up one morning to a nastygram from the state.

Put your sales tax worries to bed and register for TaxCloud today. 

The Top 5 Solutions to Build Your Ideal Ecommerce Tech Stack

To run your online store, you need an ecommerce tech stack to keep your business ticking and the orders coming in. Your tech stack also keeps you compliant, so you don’t have to worry about a surprise tax bill or audit. 

What’s an Ecommerce Tech Stack?

An ecommerce tech stack is a set of platforms, applications, frameworks, and solutions you use to manage your business. Think of a tech stack like a pizza. Certain tools and solutions rest on top of a base and you can add as many toppings (i.e., tools) as you want.

Ideally, the tools all play nicely together, so you can automate many repetitive and time-consuming business functions and sleep better at night. 


What to Include in Your Ecommerce Tech Stack

As your online store grows and evolves, your tech stack will grow and evolve, too. While you can always add on to your tech stack as your needs change, using the following from the start will give your online store the best chance of success.


Ecommerce Platform

If your ecommerce tech stack is a pizza, then the platform you choose is the crust. It’s the base on which you build your store. All the other tools depend on it. 

E-commerce platforms include Shopify, BigCommerce, WooCommerce, really the list goes on.

Each platform has its unique selling points, and one might appeal to you more than another. But generally, you want a platform that handles transactions, product pages, reviews, and fulfillment.


Payment Processing

Another must-have in your e-commerce tech stack is a payment processor. Think of it like the sauce on your pizza. 

No one uses cash when shopping online. You need a tool that accepts digital payments, like PayPal, Square, or Stripe.

Your payment processor helps protect your customers from fraud, so review the security features carefully before choosing. Also, check the fees, which can vary. 


Sales Tax Software

When you sell stuff online, you usually have to collect sales tax. And, you often need to collect sales tax in more states than you might think, thanks to something called nexus and a 2018 Supreme Court decision.

Sales tax software is the cheese on your ecommerce tech stack pizza. You might think you can do without it, but you’ll quickly realize something’s missing if you don’t have it.

Sales tax software calculates sales tax based on the products sold and customer location, collects it, and can even file your returns for you. The right sales tax solution will also include audit assistance in case you ever need it.

You get peace of mind knowing you’re complying with the 11,000 different sales tax laws, without thinking about it. 


Shipping and Fulfillment

Your ecommerce platform might already include order shipping and fulfillment but if you’re not thrilled with how it works, investing in a solution dedicated to shipping and fulfillment can add another topping to your tech stack. 

A fulfillment solution steps in and gets your orders shipped out ASAP. Most importantly, the solution ensures the right customers receive the right stuff. And, if shoppers have returns, the fulfillment solution can take care of those too. 


Inventory Management 

You don’t want to run out of your best-selling products or order too much of something that turns out to be a dud. Inventory management software is another topping to put on your tech stack.  

It keeps track of what you have in stock and what you sell. It keeps you from ordering stuff that’s not moving and can set up automatic reorders of products flying off the shelves.

Want more toppings on your ecommerce tech stack? You can add marketing tools, customer service solutions, buy-now, pay-later options, and returns solutions as your needs evolve. 

Need to add sales tax software to your tech stack? Contact us today to learn how TaxCloud helps you calculate, collect and file sales tax.

Sales Tax Software Gets Your E-Commerce Business Filing-Ready

If your online vintage store sells a trinket to a customer in New York and another in Oklahoma, do you know how much sales tax to charge for each purchase? No need to lose sleep worrying that you’re not collecting the right amount –  sales tax software can do that for you. 

Forty-five states, plus DC, collect sales tax, at varying rates. On top of that, 38 states allow for the collection of local sales tax. That’s a lot of sales tax.

From calculating tax amounts to collecting them, sales tax software keeps you compliant without having to think about it.


What Is Sales Tax Software?

Sales tax software calculates, collects, and remits state and local sales tax for your business. 

In the past, businesses only had to collect state or local taxes if they had a physical presence in the state. That changed in 2018 when the U.S. Supreme Court ruled that a physical presence wasn’t needed for a business to collect sales tax in a state.

Now, e-commerce businesses that meet an economic threshold in certain states must remit sales tax to those states. Sales tax software takes on the role of figuring out where your business needs to collect tax and how much you need to collect from each sale.


Calculate the Right Sales Tax

Sale tax rates vary by state or locality. On top of that, the items that are subject to sales tax vary by state. Buyers in Pennsylvania don’t have to pay sales tax on clothes. Shoppers in the neighboring state of Maryland do. 

Sales tax thresholds also vary from state to state. Your business must start collecting sales tax in Pennsylvania once you hit $100,000 in sales. In California, the threshold is $500,000. Some states have a threshold of a specific dollar amount or number of sales.

It can be maddening to figure out how much tax to collect and whether you need to bother. But a sales tax software platform can do the math for you, even letting you know when your business has exceeded the threshold in a certain state and needs to start collecting.


Collect Sales Tax Online

You have to collect the right sales tax amount on each purchase. Sales tax software handles that for you, ensuring you collect the right percentage on the correct products. When tax filing time comes around, you won’t be left facing a steep bill you can’t pay.


Manage Exemption Certificates

Remember that not every buyer has to pay sales tax. Some states exempt non-profits from paying tax, and those with a multi-jurisdictional resale certificate can also get out of paying tax on certain purchases. You can configure your sales tax software to collect and apply exemption certificates, reducing everyone’s hassle and headache.


Create Sales Tax Reports

As tax filing season rolls around, you can use sales tax software to generate reports for each state where you had a liability. Those reports make it easy to file your returns with each state. Depending on your service plan, the software may even file your state sales tax returns for you.

You don’t want to think about sales taxes. So get a software program that does all the heavy lifting for you. 

If you’re ready to take the first step, get in contact with our team at