Trying to understand sales tax can be an arduous task for any business owner. TaxJar helps eCommerce businesses take control of tax filing, sales tax returns, and taxes in general. Want to learn more? Read our TaxJar review to see what the service can do for your business.
TaxJar Review: What Is TaxJar?
TaxJar is a trusted sales tax service for eCommerce businesses that helps make sense of sales tax and tax returns. The platform is used by over 20,000 businesses and is a reliable tax calculation company that can help eCommerce sellers of all sizes.
The platform can help if you have a business that needs to file sales tax returns or needs help keeping track of sales tax reports. If you need to file sales tax returns across multiple states, TaxJar can also help.
File Sales Tax Returns
The service’s goal is to streamline the sales tax by providing a solution that works when it comes to filing sales tax returns.
Why is a service like TaJar helpful? If you own a business with a physical connection to a specific state, you must file sales tax according to that state’s legislation.
Help With Sales Tax Reports
Since online businesses often operate across many states, creating sales tax reports and filing the correct sales tax can be difficult for eCommerce sellers. This is where TaxJar can come to the rescue.
TaxJar helps keep track of tax collected, helps with tax reporting, and offers filing help for eCommerce businesses.
TaxJar Review: How Does TaxJar Work?
You will need first to link your seller account to TaxJar. This way, they can track and help manage any collected sales tax across your seller platforms.
TaxJar gives exact step-by-step instructions for many eCommerce platforms. However, it works mainly with Amazon.
Not an Amazon seller? Not to worry. TaxJar also works and integrates with the following platforms:
If your platform is not supported, there is no need to worry, however. TaxJar’s software allows you to import your sales tax data via a CVS file as well. With TaxJar’s dashboard, you can file taxes in the following categories:
- Any states where you collect sales tax and file taxes manually.
- States where there might be a nexus (meaning you are bound to comply with a particular state’s tax laws), but without collecting.
- States where TaxJar has automatic filing available.
Is TaxJar Legit?
Tax Jar appears to be completely legit. The tax filing service has good online reviews and also helps businesses with filing their sales taxes. There is no reason to believe that the company is not a legitimate entity or is a scam.
According to their website, more than 20,000 businesses trust TaxJar with their sales tax filings, calculations, and reporting.
What Do You Get with TaxJar?
TaxJar includes many features. The service offers customers:
- Tax Information Management
Tax Information Management
The tax information management on offer includes help with sales tax compliance for any online retail business. Those who sell online can manage their tax information by tracking their economic nexus in every state.
You will receive notifications when you are approaching sales tax thresholds. Additionally, you can get ahead by registering for state sales tax permits in the states in which your business operates.
Another great feature of the software is charging the correct retail sales tax rate on every order on your website.
With TaxJar, you can:
- Track where and when you need to collect sales tax.
- Stay tax compliant by charging rooftop-level rates.
- Use Emmet, an AI tax categorization robot, to automatically classify product tax codes.
TaxJar has many certified integrations to help streamline your sales tax management. The service supports integrations in partnership with several well-known vendors: Amazon, Shopify, Netsuite, BigCommerce, Salesforce, and others.
The platform also provides:
- 99.99% uptime. This means that your shopping cart never slows down.
- Sub-18ms response time that is faster than their competitors.
- Guaranteed accuracy for rooftop-level rates. This means you can stop fussing with rate tables.
With TaxJar, you can easily enroll in AutoFile automatically as soon as all economic thresholds are met. This is an excellent solution for those who have multiple states in which sales tax is collected.
TaxJar’s AutoFile solution will automatically submit your taxes in every state you are enrolled in. This ensures that you never miss a due date.
With AutoFile, you get your sales tax data made into sales tax filings in the manner that the state wants to see them. They will even remit payments for you.
Another great benefit of the AutoFile feature is that you can eliminate human error. This is because TaxJar carries information over from your state report to your sales tax return.
TaxJar reporting is accurate and detailed. It shows sales and sales tax collected for each state and your local jurisdiction.
Additionally, all data automatically updates daily so you can see the collection in sales tax for any state you have nexus. You will also be able to see when your next payment is due.
The reporting feature also includes estimated sales tax reports to see if you’ve been collecting the correct sales tax amount.
TaxJar’s help desk comes complete with support for multiple matters regarding sales tax and filing. If you need help, you can use the help desk to find the support you need for almost any issue. Whether you need help with transactions, accessing features, or filing, you have a wealth of information at your fingertips.
The support feature also includes help with the multiple integrations the service offers.
Additionally, TaxJar offers email support to help you with any pressing questions or issues. You can simply fill out a form or email email@example.com. The company claims that you will typically get a reply the same business day once you submit an email or request.
Unfortunately, it does not appear that TaxJar offers customer phone support, which could be seen as a downside.
TaxJar 2021 Sales Tax Preparedness Guide Review
TaxJar offers a free guide for tax preparedness that is available by filling out a form here.
The guide will help explain:
- Where you have a sales tax nexus
- How to verify if your products/services require sales tax
- How to set up sales tax collection in your online store
- When and how to register for a sales tax permit
- When to report how much sales tax has been collected
- How to file a sales tax return
This helpful information is included without additional cost. It is a great resource for any business that needs a little help with sales tax.
TaxJar Resources Review
TaxJar’s resource center has a lot of excellent information for business owners.
Here is a brief overview of the resources you will have access to.
Sales Tax Knowledge Center
This offers expertise via educational guides, checklists, and eBooks.
State Sales Tax Map
This resource offers up-to-date data on filing requirements and sales tax information for each state.
Sales Tax Calculator
A calculator that automatically calculates the combined sales tax rate for each state.
TaxJar has integrations with the top eCommerce platforms and can help with tax management, calculations, and reporting.
You can use the API documents to get information on sales tax rates, categories, or to upload transactions. This feature works for API clients across multiple languages.
You can join a webinar via your dashboard to get advice, tips, and tricks from experts in managing sales tax.
An ongoing blog with information on all things sales tax is available.
Access to case studies on how TaxJar has helped customers with their tax transactions, reporting, and state sales tax.
TaxJar Free Trial
TaxJar offers a 30-day free trial. This free trial is available without supplying your credit card information. After the trial, you will be charged at different tiers based on the number of orders your business does per month.
A demo is also available for TaxJar. To access the free demo, place a request to schedule a demo session on the website. This demo may help clarify the functionality of the service.
Does TaxJar Work with Shopify?
Yes! TaxJar works with Shopify as well as many other platforms. The platforms available include:
- Amazon Seller
How Much Does TaxJar Cost?
TaxJar pricing comes in three tiers. It should be noted that pricing depends on the order volume of each seller.
The starter tier costs $19 monthly and covers up to 200 orders per month. It is best for those needing filing and basic reporting.
This plan includes:
- Email support
- Simple CSV import
- Sales tax reporting
- 4 Free AutoFiles per year
This plan costs $99 monthly and includes up to 200 orders per month.
- All of the Starter Tier features
- TaxJar API access and integrations
- Product tax code catalog
- AI product taxability categorization
- Phone support
- Advanced CSV import
- 12 free AutoFiles per year
The premium tier is the white-glove service, and pricing is customized for the business owner’s needs. It includes unlimited auto filing. Those with interest in this plan can contact the company to discuss pricing.
TaxJar Money Back Guarantee Review
While there is no money-back guarantee per se, there is an accuracy guarantee and a filing guarantee to help ensure that customers will get the best service possible.
TaxJar will cover any penalties, uncollected sales tax, as well as interest up to 2x what you paid TaxJar over the prior 12 months. This only includes any errors that were made due to inaccuracy on the company’s behalf.
TaxJar also offers a guarantee for its AutoFile service. If your sales tax filing is not submitted on time, TaxJar guarantees to cover the penalties and interest. They will also reimburse the cost of your filing.
TaxJar Review: Pros and Cons
There are both pros and cons that come along with TaxJar.
- 30-day free trial
- Excellent resources
- Integration with multiple eCommerce platforms
- Expansive help desk
- Email support
- Create sales data from various channels and see metrics on the dashboard
- Keeps sales tax data organized in one place
- The considerable expense for larger sellers
- Not as necessary for some states with straightforward tax filing regulations
- Limited phone support access
- The plans do not fit all customers as some businesses have more significant needs
- Reports from some states need improvement
Is TaxJar Right for Me?
TaxJar may be right for you if you are an eCommerce seller who needs a little extra help keeping track of your sales tax. It may be beneficial if you live in a state with complex sales tax regulations.
Those who need help with tax reporting and need help to calculate their taxes could find the platform helpful. Additionally, anyone who wishes to file their sales tax automatically might benefit significantly from their automated service.
TaxJar Reviews by Business Owners
Reviews from across many different sites rate TaxJar quite positively. They have a TrustRadius score of 9.0/10.
Reviewers tend to like automated tax filing as well as the ability to calculate tax payments.
The platform also gets a good amount of praise for its help with nexus in multiple states. One reviewer of Trust Radius even writes,
“TaxJar is necessary for any business with nexus in multiple states.”
The only thing some customers complain about is the costs of the platform. However, these reviews are typically from very large volume sellers.
Final Review: Is TaxJar Worth It?
TaxJar may be a great service for anyone who needs help with their sales tax. The features and wealth of information available seem to make it a solid platform to use for varied sales tax needs. According to reviews, it may be beneficial to those with a nexus in multiple states, and it performs well for most customers.
The pros seem to outweigh the cons, and overall, TaxJar looks to be an excellent option for eCommerce sellers. There are other sales tax management platforms available. However, we see no reason why TaxJar should not be given some serious consideration.