5 Best Sales Tax Software for E-Commerce
Discover how sales tax software for e-commerce simplifies tax compliance, streamlines operations, and ensures accuracy for online businesses.
Learn MoreE-commerce sales tax compliance has become increasingly complex as states expand economic nexus laws and enforcement. The right sales tax software automates calculations, tracks nexus thresholds, and handles multi-state filings—saving you from costly penalties and audit risks.
After analyzing dozens of solutions, we've identified the five best sales tax software options for e-commerce businesses in 2025. Here's our comprehensive comparison to help you choose the right solution for your business.
Get Help for Your Company
30-minute call
sales tax expert
off your plate
What Is the Best Sales Tax Software for E-Commerce?
Choosing the right sales tax software can be the difference between seamless compliance and costly penalties. We evaluated over 20 solutions based on automation capabilities, integration ease, customer support quality, and total cost of ownership.
Best Sales Tax Software for E-Commerce
Zamp is the best overall sales tax software for e-commerce businesses, followed by TaxJar, Avalara, Numeral and Anrok. We’ll dive into each company in further detail below.
1. Zamp: Best Overall Managed Solution
Zamp revolutionizes sales tax compliance by combining advanced automation with dedicated tax experts who handle everything for you. Unlike traditional software providers that leave you to learn complex systems, Zamp's managed approach means you never have to become a tax expert yourself.
Key Features
- Full-Service Management: Zamp handles everything from nexus tracking and sales tax calculations to registrations and filing—all with minimal oversight needed from you.
- Multi-Channel Coverage: Streamlined tax compliance across your website and marketplaces, with direct API integrations to Amazon, Shopify, Adobe Commerce, BigCommerce, QuickBooks Online, and more.
- Risk Monitoring and Alerts: Proactive notifications when you reach nexus thresholds or compliance issues arise. We stay on top of data and state changes so you don't have to.
- One Price, No Surprises: Predictable pricing that includes both software and expert service. Why deal with more complexity in your sales tax approach?
- Done-For-You Onboarding: Zamp extracts and imports all your historical data.
Pricing
Zamp offers a competitive pricing model that’s built to scale as your company grows. Pricing details are transparently displayed on the website, allowing businesses to anticipate costs without any hidden fees.
Customer Support
Many businesses have turned their tax troubles around with Zamp’s sales tax software. We've seen companies save time, reduce errors, and enjoy a smoother sales process.
Zamp was also recently awarded Best Customer Support, Best Meets Requirements, Easiest Setup, and Easiest to Use by G2.
Yumwoof, an Austin, Texas-based e-commerce pet food brand, faced significant challenges in managing sales tax across multiple states. With a growing customer base, the complexities of handling sales tax in 17 states became increasingly demanding. The company's COO, Ana Padilla, found the process of registering and staying compliant in each state time-consuming and stressful, detracting from her focus on business growth.
Turning to Zamp for a solution, Yumwoof experienced a transformative change in managing its sales tax obligations. Zamp provided a comprehensive, team-oriented approach to handle all aspects of sales tax, from registrations to compliance. The personalized support and expertise offered by Zamp's team played a crucial role in simplifying the process.
Key benefits Yumwoof gained from Zamp's service included:
- Effortless Multi-State Tax Compliance: Zamp took over the daunting task of managing sales tax across numerous states. This was a game-changer for Yumwoof, as it relieved the company from the complexities of staying compliant with diverse state tax laws. Zamp's expertise in dealing with multi-state tax issues ensured that Yumwoof could expand its business without the added worry of sales tax compliance.
- Personalized Customer Support: Zamp provided Yumwoof with dedicated customer support. This meant that any time Yumwoof needed assistance or had questions about sales tax, they had direct access to knowledgeable professionals. This level of personalized support gave the company the confidence and assurance that they could tackle any sales tax-related challenge that came their way.
- A Clear and Secure Onboarding Process: Transitioning to Zamp's sales tax system was smooth and hassle-free for Yumwoof. The onboarding process was designed to be transparent and secure, ensuring that all of Yumwoof's sales tax needs were understood and appropriately set up in the system. This streamlined onboarding process made it easy for Yumwoof to integrate Zamp's services into their operations without any disruption to their business.
- Time and Resource Savings: By entrusting sales tax management to Zamp, Yumwoof saved significant amounts of time and resources. This allowed the company to redirect its focus and energy towards core business activities, like product development and customer engagement, rather than being bogged down by tax compliance tasks.
- Scalable Solutions for Growth: As Yumwoof continued to expand, Zamp's services scaled with them. This adaptability meant that as the company grew and entered new markets, Zamp was able to handle the increasing complexity of its sales tax requirements. This scalability was key for Yumwoof’s growing business, ensuring that they were always ahead of their tax obligations.
You can read more about Zamp’s customer success stories here.
2. TaxJar
TaxJar offers comprehensive sales tax automation focused on self-service management. As one of the most recognized names in e-commerce tax software, TaxJar provides solid automation features for businesses willing to invest time learning and managing their own tax compliance systems.
Key Features
- Real-time tax calculations across multiple states
- Integration with major e-commerce platforms
- Essential reporting and compliance tools
Pricing
TaxJar offers two different plan options — Starter and Professional. The pricing for these plans is not listed on their website but is based on the number of transactions each month. Basic plans cover essential features like tax calculation and reporting, while the higher-tiered plan includes additional services, more integration options, and customer support.
Limitations
Mixed customer reviews cite integration challenges and unexpected costs. Dedicated expert support is not available for complex compliance issues.
3. Avalara
Avalara provides enterprise-grade tax compliance technology designed for large organizations with complex, multi-jurisdictional requirements. While comprehensive in scope, Avalara's platform requires significant internal resources to implement and manage effectively, making it better suited for businesses with dedicated tax teams.
Key Features
- Automated tax calculations for multiple jurisdictions
- Filing and remittance capabilities
- Extensive integration network
- Global tax compliance (VAT, GST)
Pricing
Avalara does not include everything in one price for its customers. However, its general service for online stores and retailers includes automated sales tax calculations, compliance reporting, and tax filing capabilities.
Limitations
Avalara’s complex implementation process requires technical expertise, and modular pricing can become expensive once add-on features stack up. Users report customer support challenges with lengthy response times for non-enterprise clients.
4. Numeral
Numeral enters the sales tax software market with a simplified pay-per-filing approach designed for small businesses with straightforward tax obligations. As a newer player, Numeral focuses on basic automation features while offering potentially lower costs for businesses with limited filing requirements.
Key Features
- Automated calculations and filing
- Streamlined tax filing process
- Basic e-commerce platform integrations
Pricing
Numeral’s pricing begins at $75 per filing, with rates that scale according to transaction volume. Additionally, the company charges $150 per state registration. They’ve labeled their payment method as “Pay as you go.”
Limitations
Mixed reviews highlight concerns about hidden fees and rate increases. As a newer player in the market, Numeral has a more limited track record compared to established providers like Avalara.
5. Anrok
Anrok specializes in sales tax compliance for Software-as-a-Service companies, offering features tailored to subscription-based revenue models and digital product taxation. While Anrok handles both US sales tax and international VAT/GST, its focus on SaaS businesses means traditional e-commerce retailers may find limited applicability.
Key Features
- Automated nexus determination
- US sales tax plus international VAT/GST
- Data security focus
- SaaS business optimization
Pricing
Anrok offers three plans: Starter, Core, and Growth. However, prices are not listed on its website for any of the plans. All plans include global exposure monitoring, calculation, filing and remittance, exemption certificates, and a sales tax calculator.
Limitations
Anrok specializes in SaaS tax compliance but may not suit traditional e-commerce product sellers.
Free Download: Sales Tax Guide for E-Commerce
Why E-Commerce Businesses Need Sales Tax Software
Managing sales tax manually worked when e-commerce was simpler and nexus rules were predictable. Today's reality is different. Economic nexus laws have transformed occasional tax obligations into complex, multi-state compliance requirements that can overwhelm even experienced business owners.
The stakes have never been higher. States are aggressively enforcing compliance, penalties have increased substantially, and audit frequency continues to rise. Meanwhile, the administrative burden of tracking nexus thresholds, calculating accurate rates, and filing in multiple jurisdictions can consume resources that should be focused on growing your business.
The Complexity Challenge
With over 13,000 tax jurisdictions in the United States, each transaction can trigger different tax rates, rules, and filing requirements. Manual management becomes unsustainable as you scale across states.
Key Challenges Include:
- Economic Nexus Thresholds: States like California ($500,000 in sales) and Texas ($500,000 in sales) create compliance obligations once you exceed revenue or transaction limits.
- Product Taxability Variations: Most clothing might be tax-exempt in Pennsylvania but taxed differently based on price in New York.
- Multi-State Filing Requirements: Each state has unique forms, deadlines, and submission processes
- Exemption Certificate Management: B2B sales require proper documentation and validation
- Return and Refund Adjustments: Processing returns affects your tax liability calculations
Business Impact of Non-Compliance
There are several business impacts of being non compliant, including:
- Financial Penalties: States impose significant penalties for missed filings—often 25% of tax owed plus interest.
- Audit Risk: Manual processes increase error rates and audit probability.
- Resource Drain: Internal tax management costs typically exceed automated solution pricing.
- Growth Limitations: Tax complexity can prevent expansion into profitable new markets.
Features to Look For in E-Commerce Sales Tax Software
Not all sales tax software is created equal. While basic tax calculation might seem sufficient, the difference between adequate and exceptional lies in the details—how well the software handles edge cases, integrates with your existing systems, and adapts to your business's unique requirements.
Automated Tax Calculations
Real-time calculation engines that update tax rates automatically across all jurisdictions. Look for solutions that handle complex scenarios like bundled products, shipping charges, and promotional discounts.
Nexus Monitoring
Proactive tracking of your sales volume and activity across states to alert you before reaching economic nexus thresholds. This prevents unexpected compliance obligations.
Multi-Platform Integration
Seamless connectivity with your existing e-commerce stack, including Shopify, BigCommerce, WooCommerce, Amazon, and accounting systems like QuickBooks.
Sales Tax Filing and Remittance Automation
End-to-end handling of sales tax returns and payments, eliminating manual filing requirements and missed deadlines.
Exemption Management
Automated validation and storage of tax-exempt customer certificates with audit-ready documentation.
Implementing a Sales Tax Automation Solution for Your E-Commerce Business
Integrating sales tax software into your e-commerce operations is a strategic move that can streamline your processes and ensure compliance. Here's how to do it right:
- Assess Your Needs: Before integrating, assess your business's specific sales tax requirements. Consider factors like your sales volume, the number of states you operate in, and any unique tax obligations you may have.
- Choose the Right Software: Select a sales tax software provider that aligns with your business needs and goals. Look for features like automatic rate calculation, multi-state functionality, and integration capabilities with your e-commerce platform.
- Sync with Your E-commerce Platform: Once you've chosen your software, it's time to integrate it with your e-commerce platform. Most sales tax software solutions offer seamless integrations with popular platforms like Shopify and BigCommerce. By syncing your software with your platform, you can ensure that sales tax calculations are accurate and up-to-date in real time.
- Customize Settings: Take advantage of any customization options your sales tax software offers. Set up tax rules specific to your products and jurisdictions to ensure accurate calculations. Additionally, configure settings for automatic tax rate updates and tax-exempt transactions to streamline the process further.
- Train Your Team: Ensure your team is trained on using the sales tax software effectively. Provide comprehensive training on how to input data, generate reports, and troubleshoot any issues that may arise. By empowering your team with the knowledge and skills they need, you can maximize the benefits of your sales tax software. Signing your team up for Zamp’s sales tax newsletter will keep everyone up-to-date on the most recent sales tax news.
- Monitor Performance: Monitor the performance of your sales tax software after integration. Monitor tax calculations, filings, and potential issues. Review reports and analytics regularly to ensure accuracy and compliance.
- Optimize Over Time: As your business grows and evolves, optimize your sales tax software integration. Stay informed about tax laws and regulations changes and update your software settings accordingly. Review your processes and workflows regularly to identify areas for improvement and optimization.
Conclusion: Choosing Your Sales Tax Partner
The best sales tax software for your e-commerce business depends on your current size, growth trajectory, and internal resources. While software-only solutions require significant learning and management investment, managed solutions like Zamp provide expert handling of your entire tax compliance process.
For most growing e-commerce businesses, we recommend Zamp because it:
- Eliminates the learning curve and software management burden
- Provides expert support to handle complex compliance scenarios
- Scales seamlessly as your business grows across states
- Delivers proven results with 600+ successful client implementations
- Offers transparent pricing with no hidden fees
The investment in proper sales tax management pays dividends through avoided penalties, reduced audit risk, and the ability to focus your resources on profitable business activities rather than tax complexity.
Ready to eliminate sales tax headaches for good? Book a free expert consultation today.
Get Help for Your Company
30-minute call
sales tax expert
off your plate
Sales Tax Software for E-Commerce: FAQ
Generally, yes. If you have a physical or economic presence in a state, you’re likely required to collect sales tax on transactions made to customers within that state.
The sales tax rate varies depending on the location of the buyer. You can use sales tax software to automatically calculate the correct rate based on the buyer’s address.
Handling e-commerce sales tax involves determining if you have nexus in the states where your customers are located, calculating the correct sales tax rates for each transaction, collecting the tax, and then reporting and remitting it to the respective state authorities. Sales tax software can automate these steps, ensuring accuracy and compliance.
Sales tax management is challenging for e-commerce businesses due to the complexity of tax laws that vary by state and sometimes by city or county. Additionally, understanding and keeping up with nexus criteria, varying product taxability rules, and constantly changing tax rates and regulations add to the complexity.
Key features to look for include automated tax rate calculation, integration with your e-commerce platform, accurate reporting and filing capabilities, support for multiple states’ tax laws, and efficient management of customer exemption certificates. User-friendliness and quality customer support are also important.
Sales tax software automates the process of calculating the correct tax rates for each sale, based on the latest tax laws. It reduces the manual workload and minimizes the chances of errors in tax calculations. This not only streamlines operations but also ensures more accurate and compliant tax handling.
The compliance benefits include accurate calculation of sales taxes, timely filing and remittance of taxes, maintaining up-to-date records for audits, and staying compliant with ever-changing tax laws. It reduces the risk of penalties and fines due to non-compliance or errors in tax processing.
E-commerce businesses should assess their specific needs based on their size, the complexity of their operations, and the states where they have nexus. They should look for software that integrates seamlessly with their existing e-commerce platform, offers scalability, provides strong customer support, and fits within their budget. It’s also beneficial to choose software that offers a trial period or demo to ensure it meets the business’s specific requirements.
Yes, Shopify allows you to set up sales tax calculations. You can also set up tax overrides to address specific tax laws and situations that may arise based on your customer’s location.
Yes, there are several types of sales tax software that can calculate sales tax in the US. Zamp is an automated sales tax solution that offers rooftop accurate calculations for customers, along with managing the complete sales tax lifecycle.
Failing to collect sales tax can result in penalties, fines, and back taxes. It’s crucial to comply with sales tax laws to avoid legal trouble and financial consequences.
You’re generally required to register for sales tax in states where you have nexus, which can include having a physical presence, significant sales volume, or engaging in certain activities like affiliate marketing.
Keeping track of changing sales tax laws and regulations can be challenging. Consider using sales tax software to automate compliance processes and ensure accurate tax collection and reporting. Additionally, staying informed about sales tax updates and consulting with tax professionals can help you stay compliant.