How much does TaxJar cost? The ultimate 2024 TaxJar pricing review

Want more details about the hidden costs of using TaxJar?

Whether you’re investigating TaxJar as a potential solution or a current user who’s frustrated by TaxJar’s pricing, we’ll break down exactly what you’ll pay for TaxJar – and even suggest a cheaper TaxJar alternative.

First, we’ll start with an overview of TaxJar features and functionalities and then we’ll look at the sales tax software’s monthly pricing, volume-based pricing, and hidden pricing.

What is TaxJar?

TaxJar is a sales tax compliance tool recently purchased by Stripe that’s designed to provide sales tax management for e-commerce businesses. From calculating sales tax to filing and remitting sales taxes in the states where you have nexus, TaxJar automates the sales tax compliance process.

TaxJar is focused on sales tax compliance in the U.S. and doesn’t offer international sales tax support. Like many sales tax software offerings, TaxJar offers integrations with popular e-commerce platforms like Shopify and WooCommerce, as well as compatibility with accounting software and ERPs like Intuit QuickBooks and SAP.

What features are included with TaxJar?

Before we dive into TaxJar pricing, let’s explore the features and functionalities you get with TaxJar’s sales tax software.

The first thing to note is that TaxJar has two different tiers with different feature packages with each.

Here are the features included in each TaxJar tier:

Key Features

How much does TaxJar cost?

TaxJar charges two types of fees: subscription fees which increase in monthly or annual cost based on order volume or per service fees.

TaxJar has two pricing tiers for their subscriptions:

TaxJar’s Starter plan is tailored for new businesses and marketplace sellers and begins at $19 per month or $205 per year. However, it only has a basic data integration so lacks advanced functionalities like economic nexus alerts and advanced reports. With this plan, users are also limited to 200 orders per month, 4 auto tax filings, 3 data import integrations, and can only access email support.

TaxJar’s Professional plan offers more functionalities for a higher price. Designed for small-to-mid-sized businesses, Professional offers real-time calculations and comprehensive reporting, as well as filing services for up to 12 states. Priced at $99 per month or $1,069 per year, this plan also includes a limit of 200 transactions per month. However, it supports up to 10 integrations and access to phone and chat support.

Both plans’ costs scale based on the number of orders processed monthly.

TaxJar Pricing: Base Monthly & Annual Subscription Cost

TaxJar Pricing: Volume-Based Costs

While TaxJar charges businesses a monthly subscription fee, the amount charged is determined by the number of transactions included in that plan. As most businesses process significantly more than 200 transactions a month, the actual cost of TaxJar could be much more expensive.

For example, a company processing 200 monthly orders on TaxJar’s Professional plan would pay $99 per month. If they processed 500 orders a month that cost jumps to $199 per month.

Here’s a table breaking down TaxJar’s pricing around transaction volume:

TaxJar Pricing: Per Service Fees

While TaxJar includes a number of free sales tax filings with each service tier, they charge additional fees if you require more than the four tax filings included in the Starter plan and the 12 included in the Professional plan.

TaxJar API Costs: Hidden Pricing

While API access can be beneficial because it comes with additional features, there are some hidden fees in TaxJar’s Professional plan related to TaxJar API Costs. Essentially, TaxJar calculates your order volume differently if you’re on the Professional plan and have TaxJar API access.

When on the Starter plan, your order volume is calculated based on the number of transactions you import into their systems every month. When you’re on the TaxJar Professional plan, however, you’re charged for a number of different types of API calls that might not result in a completed transaction.

• Any API tax calculations or rate lookups that they provide count as 1/10th of an order.
• You also pay for every transaction you import into TaxJar.

Depending on your order volume and API calls per month, that could mean your costs are much higher than the order volume tier you would otherwise fit in based solely on TaxJar API costs.

Pricing Comparison with TaxCloud

Feel like TaxJar is too pricey?

TaxCloud is a great TaxJar alternative that has industry-leading value and pricing. We’re also known for our great customer support.

We offer two tiers plus a custom tier for those with higher order volumes or more hands-on needs: TaxCloud Starter and TaxCloud Premium. Before we break down our pricing, these are the features we offer. You might notice something important – we offer more features than TaxJar at both tiers.

Key Features

How much does TaxCloud cost?

Like TaxJar, TaxCloud also charges subscription fees that increase based on order volume.

However, many of TaxCloud’s fees are lower than TaxJar’s – while giving you more services and support.

TaxJar Pricing: Comparing Costs with TaxCloud

Like TaxJar, TaxCloud also has volume-based pricing around their subscription costs. However, many companies can save a significant amount of money by choosing TaxCloud over TaxJar.

Let’s revisit our example company above. A company processing 200 monthly orders on TaxCloud’s Premium plan would pay $799 per a year, the equivalent of just $66.58 a month – whereas that would cost $1,069 per year with TaxJar. That’s a savings of $270 a year or 25%!

If that company processed 1,000 orders per month on TaxCloud that would cost just $2,999 per year or the equivalent of $249 per month. Compare that to TaxJar which would cost $3,769 per year. That’s a savings of $770 per year!

Here’s a table breaking down TaxCloud vs. TaxJar’s pricing around transaction volume:

TaxCloud Pricing: Additional Costs

Like TaxJar, TaxCloud has some additional services and fees that customers can purchase separately on the Starter and Premium plans.

For example, customers can get support filing their sales taxes on a state by state basis for $30 per filing or purchase a plan that covers nationwide tax filing for $349 per month.

Let’s say your company has to file in 30 states, that would cost the following amounts depending on your plan:

• TaxJar Starter: $910/month
• TaxCloud Starter: $900/month
• TaxJar Professional: $540/month
• TaxCloud Premium: $349/month

With TaxCloud, you’d save $120 per year on the Starter plan and $2,292 on the Premium plan.

TaxCloud Beats TaxJar on Pricing… by a Lot

As you can see, TaxCloud is significantly cheaper than TaxJar – while offering more features and more options for support. No matter the size of your ecommerce business, you’ll save by choosing TaxCloud over TaxJar.

Learn more about how we can help you with everything from monitoring your nexus status in different states to helping defend you from audits.