Are there charges for using TaxCloud?

The cost of using TaxCloud depends on how you configure your account. TaxCloud is subsidized by our 25 Member states when you agree to collect their sales tax, so that will certainly lower your costs. TaxCloud's Member states are AK, GA, IA, IN, KS, KY, MI, MN, NC, ND, NE, NJ, NV, OH, OK, PA, RI, SD, TN, UT, VT, WA, WI, WV, WY. For some small businesses, TaxCloud can even be free. To use TaxCloud free-of-charge, a business must meet the following criteria:

  1. collect sales tax in our 25 Member states;
  2. generate less than $50,000 in monthly revenue, and;
  3. have nexus in only one state.

Once you've collected sales tax in the above states for a given month, TaxCloud will debit your bank account the following month for the taxes you collected and then file the appropriate returns. Please note that you cannot "pick-and-choose" individual states among the 25 Member states. That is, you have to collect in all 25 states or select a different set-up option.

Please see below:

  1. As mentioned above, TaxCloud will calculate, file and remit on your behalf for free in the 25 Member states since those states pay TaxCloud a small comission for the taxes we remit to them. 
  2. In the next scenario, let's assume you collect in our 25 Member states as well as TX and NY. In that case, TaxCloud would not be free. Your cost would depend on who files and remits for your business in the non-Member states.

    If TaxCloud files and remits for you, the fee is between 0.125% and 0.50% of your sales in all non-Member states. If you do it yourself, TaxCloud only charges for your API calls in the non-Member states.
  3. The last option is to not collect in all 25 member states but, instead, select the individual states where you want TaxCloud to calculate sales tax. In this case, you only pay TaxCloud for API calls. (You would be responsible for filing returns & remitting taxes yourself)

    You can see the costs of different API plans by clicking the Pricing tab on our Home Page.