Does TaxCloud calculate all local and state taxes?

Yes. TaxCloud instantly calculates all applicable state and local Sales Tax (or Use Tax, if applicable) and provides the exact amount of tax proceeds due, in dollars and cents (e.g, $2.36), for each line item.

Frequently Asked Question: Why doesn't TaxCloud provide tax rates?

TaxCloud does not provide tax rates because responding with a Sales or Use Tax Rate would require developers to do very intricate math. Seriously, we know developers can write software to do math—but when we say very intricate, we are leaping from basic math to legislatively influenced math. Legislatively influenced math involves determining the applicable tax proceeds at the moment of checkout, which depends on the following factors (for each line-item and tax category):

  • Proper identification of applicable tax jurisdictions (up to 20 possible)
  • Assigning the applicable Sales Tax (or Use Tax) rate for each possible jurisdiction
  • Determining the exact amount of tax proceeds due (in dollars and cents), involving multiple factors which vary by jurisdiction, including:
    • Rounding rules (some jurisdictions round at 9, rather than 5, no joke), and
    • Application of thresholds and caps, based upon the tax category of the goods or services being sold, and
    • Respecting occasional sales tax holidays, usually limited to specific tax categories.

We don't believe any tax compliance API should expect clients or consumers of the API to have to learn and operationalize all of these intricacies, which is why TaxCloud responds with the tax proceeds due, in dollars and cents.

Complete downloadable details regarding tax jurisdictions and sub jurisdictions, on a per line item basis, are always available from within your TaxCloud account.