Best Sales Tax Compliance Software for 2025

Dealing with sales tax rules can seem like taking on a giant challenge. That's when sales tax compliance software steps in, making things clearer for you. This game-changing technology lets you streamline your tax processes, ensure compliance, and free up valuable time to focus on growing your business.

So how do you choose the best one for your company? And how does a sales tax solution work? We’ll explore the ins and outs of what you should be looking for and how the right sales tax compliance and automation software can help your business out. We’ll also introduce the best sales tax compliance software to consider for 2025.

How Does Sales Tax Work for E-Commerce?

E-commerce companies in the US are required to collect, file, and remit sales tax to states where they have a physical presence or have reached economic nexus thresholds. In the US Supreme Court Case South Dakota vs. Wayfair, a ruling was reached requiring businesses to remit taxes if they have a significant economic presence in a state.

Each state makes its own rules regarding what thresholds it wants to implement. It’s usually a certain volume of sales or processing a certain number of orders in a state. For example, in California, e-commerce companies achieve economic nexus when they exceed $500,000 for the sale of tangible personal property.

After a company achieves nexus in a state, it must register for a sales tax license or permit. It cannot begin collecting, filing, and remitting taxes until this step is complete. And depending on the size of the company, it could be required to register and file in a handful of states or all of them, depending on the amount of business it does. 

What Is Sales Tax Software?

Managing sales tax can be a complex and time-consuming task for businesses. Learning how to file sales tax while ensuring compliance requires accurate calculations, timely filing, and detailed reporting. Without the right tools, companies may struggle to keep up with the constantly changing sales tax regulations and requirements.

Luckily, sales tax compliance software has your back, updating itself to keep in line with the latest changes so you're never left behind. By integrating with existing accounting and e-commerce platforms, this software streamlines the entire sales tax management process, saving businesses time and reducing the risk of errors.

Having sales tax software decreases the potential for costly penalties and sales tax audits, giving you a reliable and efficient method of staying compliant.

Key Features of Sales Tax Compliance Software

Now that you know what sales tax compliance software does, let's explore its key features.

• Automated Sales Tax Calculations: This feature eliminates guesswork when calculating sales tax. It automatically determines the correct tax rate based on your customer's location and tax jurisdiction and the nature of the products or services you sell. It's like having your own tax expert.
• Economic Nexus Tracking: The best sales tax compliance solutions offer nexus tracking, so you know when to register in new states and file tax returns.
• Integration Capabilities: You're not alone in facing software integration challenges. But, good news! The right compliance software seamlessly integrates with your existing accounting or e-commerce platform, ensuring all your data is in one place.
• Customization: No two businesses are alike, and your compliance software should reflect that. Look for a solution that offers compliance software customization. This allows you to tailor the software to meet your business needs, giving you a sense of ownership and belonging.

These key features can transform the way you handle sales tax, making it easier, faster, and more accurate.

Benefits of Using Sales Compliance Software

Using sales tax compliance software opens up a whole world of benefits for your business. It transforms sales tax management into a smoother and more manageable part of your operations. This technology essentially becomes a key player on your team, equipping you to deal with the intricacies of sales tax with confidence and efficiency.

Here are some benefits of using sales tax compliance software:

1. Making Tax Calculations Easier and More Accurate 

Sales tax compliance software significantly affects how accurately and easily you can handle taxes for your business. When you do taxes by hand, making mistakes could cost you a lot in penalties. 

But, with this software, you don't have to worry about those mistakes. It does the math for you, ensuring every tax calculation fits your products and where you sell them. Plus, it handles all the sales tax returns and filing for you, which means less paperwork and more peace of mind.

2. Saving Time and Money in Handling Taxes

Using sales tax automation software can save you time and money. Doing taxes manually takes time and can often lead to errors. But with this software, everything is faster and more efficient. It figures out your tax rates and takes care of your tax reports and filings. This means you don't have to spend extra on hiring people or outsourcing your tax work, which is great for your budget.

3. Keeping Up with Tax Law Changes Easily

Tax laws change constantly, and it can be tough to keep up. That's where sales tax automation software and a multi-state tax filing service help. It updates whenever there's a change in tax laws or rules, so you're always on top of things. This takes a big load off your shoulders and reduces the risk of getting hit with fines from tax authorities for not following the latest tax requirements and laws.

4. Better Understanding of Your Business Finances

Lastly, this software does more than just handle your taxes. It gives you a clear picture of your business's financials. It keeps track of all your sales tax information, so you know exactly what you owe and what tax deductions you have. This clear view helps you understand your business's financial health better. The software also has tools to analyze your sales data. This means you can spot trends and make smarter decisions to grow your business and make more money.

5. Streamlining Your Sales Tax Obligations

Remember the hassle of wading through piles of paperwork, scratching your head over complex tax regulations, or figuring out how to pay your business sales tax? Those days are over. This software takes care of the legwork, managing everything from crunching numbers to filing sales tax reports and everything in between. This means you can say goodbye to wasted hours and hello to more time focusing on what's really important — driving your business forward and building a strong team.

In essence, sales tax compliance software isn't just another tool in the toolbox; it's like a dependable and skilled team member. It marks a shift towards a future where tax management isn't just a chore but a precise, well-oiled part of your business operations.

Choosing the Right Sales Tax Compliance Software

Choosing the right sales tax management software is a crucial decision for your business, and it's essential to consider what your business requires to make the best choice. You're not by yourself in figuring this out. We're here to assist you in selecting an option that perfectly fits your specific needs.

Here are some things to think through before you choose what end-to-end solution is best for you.

The Best Sales Tax Compliance Software

Let's dive into some of the top sales tax compliance software options that could potentially revolutionize your approach to tax management. These automated sales tax solutions can streamline your tax processes, but it's important to understand the software pricing and prepare for any implementation challenges. 

1. Zamp

Highlights

Zamp has distinguished itself in the sales tax compliance industry by offering a completely managed end-to-end solution. Its software is geared towards companies of all sizes and it provides a comprehensive solution that works with a variety of platforms, including Shopify, Stripe, and BigCommerce.

With its end-to-end solution, Zamp can handle multi-state sales tax filings, registrations, nexus tracking, accurate sales tax calculations, tax research, and help with sales tax audits.

Key Details

• Great for: Startups and businesses that are looking to scale from e-commerce to SaaS and CPG
• Price: Pricing varies based on your state tier, but everything (filings to registrations and taxability research) is included in that one price.
• Pros: Zamp lets you scale your business without worrying about the ins and outs of sales tax. You never have to worry about being overcharged for additional filings or tax return preparation because everything is included in that one cost in the pricing model. In addition, the company has a knowledgeable and experienced customer service team that actually answers its phones and will always do its best to help with all your tax related questions.

Customer Review

“Their customer service is second-to-none. They respond quickly, are personable, and domestically based. I appreciate their care and attention to detail. We used to be with "the big competitor" in the space, and they were awful, with terrible responsiveness and unhelpful customer support. It was the best switch my company could have made.” — David W. on G2

Why Zamp?

Zamp provides a scalable sales tax automation software that seamlessly integrates with your existing systems like Shopify. With Zamp, you can automate sales tax calculations, filings, and remittances, saving you time and reducing the risk of errors.

The software is designed to handle complex tax rules and regulations, ensuring accurate calculations for all jurisdictions. Zamp also offers real-time tax rate updates, keeping you up-to-date with the latest tax rates and changes.

With detailed reports and analytics, you can monitor your sales tax compliance and make informed business decisions. The software is user-friendly, with an intuitive interface that makes it easy to navigate and use.

Zamp's customer support team is available to assist you with any questions or issues. Overall, Zamp offers a comprehensive solution for automating your sales tax processes, providing you with efficiency, accuracy, and peace of mind.You can check out our customer success stories.

2. TaxJar

Highlights

TaxJar is a cloud-based tax software solution created to help companies streamline their sales tax management. It integrates with a variety of e-commerce platforms, marketplaces, and financial systems to enhance business functionality. 

Key Details

• Great for: E-commerce businesses looking to simplify sales tax
• Price: TaxJar offers a tiered pricing structure, which is based on the number of integrations needed and transactions processed per month. Higher-tiered plans provide additional services like international tax calculation and customer support.
• Pros: The company stands out for the number of integrations it offers, along with its AutoFile feature that submits sales tax returns and payments on behalf of the business.

Customer Review

“Overall experience has been great. It took some time to get set up because we have back sales we needed to import. But once everything was operational it saved us time each and every month.” - Daven S. on Capterra

3. Avalara

Highlights

Avalara was designed to help businesses automate tax compliance. It offers automated tax calculations that ensure accuracy across thousands of jurisdictions, along with managing and storing tax exemption certificates.

Key Details

• Great for: Businesses that need tax compliance software with no oversight
• Price: Avalara offers several pricing tiers for customers, which mainly depend on the number of transactions your business handles.
• Pros: Avalara has a wide range of integrations, like Shopify, Magento, and WooCommerce, that work directly with those platforms. It also offers sales tax preparation and filing to ensure you stay compliant in the states you operate in.

Customer Review

“Overall, my experience with Avalara has been positive. The software provides reliable tax compliance solutions and significantly improves efficiency. Although the initial setup was complex, the automation and responsive customer support made it worthwhile.” - Tam N. on Capterra

4. HOST

Highlights

HOST is unique in the sales tax software market, providing flexible and functional solutions. It offers customizable tax rules, allowing businesses to tailor tax settings to their needs. The company also offers multi-currency support for companies involved in international sales. 

Key Details

• Great for: Dynamic businesses looking for adaptable tax software solutions
• Price: HOST does not list any specific pricing details on its website, though it mentions several pricing tiers depending on business needs. 
• Pros: HOST allows its users to customize the software based on their needs and offers advanced reporting tools, giving them access to detailed insights with advanced reporting capabilities.

Customer Review

“We are a small but growing internet sales company with sales in 46 states. We could not track, file and pay the sales tax in the 46 states by ourselves. HOST has been wonderful, they notify us when we need to take action in a state when nexus is established and they take it from there. Their filings are timely and accurate. Their customer support is great, if we have questions we get a response, usually within 24 hours. Well worth the money.” - Classful Tax

5. TaxValet

Highlights

TaxValet takes an active approach to sales tax compliance. The company provides full-service management that handles various aspects of sales tax for its customers, ranging from registrations to filings and more.

Key Details

• Great for: Businesses looking for an all-in-one solution
• Price: The company does not list specific pricing on its website but states that most customers spend $1,000 to $3,000 monthly on its services.
• Pros: TaxValet offers full-service management with a no-fine guarantee, which means they will cover any costs associated with fines resulting from their errors. It also provides a dedicated account manager to offer support and assistance.

Customer Review

“Everything is easy, well thought out and done for you with TaxValet. They consistently give good updates and keep me in the loop without asking too much from me. It's completely hands off which is what I like” - Aaron L. on G2

Sales Tax Compliance Software: Conclusion

In conclusion, selecting the right sales tax compliance software is more than just a task; it's a strategic decision that can significantly impact your business's efficiency and financial health. Remember, the goal is to find a solution that not only meets your current compliance needs but also aligns with your company's budget and growth trajectory. 

Opt for software that feels like an extension of your team, easy enough for everyone to use and robust enough to handle the complexities of sales tax as your business expands. By carefully considering your budget, prioritizing ease of use, and planning for future growth, you're not just choosing a tool—you're setting up a foundation for streamlined operations and compliance peace of mind.