Software Comparison
U.S. Sales Tax Software: Complete Guide 2026
Following the Supreme Court's 2018 South Dakota v. Wayfair decision, businesses must now navigate over 13,000 distinct tax jurisdictions across the United States. The market for tax compliance software has exploded in response.
This guide compares 12 major providers with pricing from $19/month to $70K+/year, exposes hidden costs that can double your bill, and provides clear recommendations by business type.
Table of Contents
Quick Comparison
| Provider | Best For | Pricing |
|---|---|---|
| Avalara | Mid-size to Enterprise | $5K-$70K+/year |
| Vertex | Large Enterprise | $60K+ median |
| TaxJar | SMB E-commerce | $19-$99/mo + filing fees |
| Stripe Tax | Stripe Users | 0.5% per transaction |
| Sovos | Wine/Spirits, 1099s | $17K median |
| TaxCloud | Budget SMBs | $19-$79/mo, unlimited filings |
| Anrok | SaaS Companies | $399/mo+ (by ARR) |
| Sphere | High-Growth Scale-ups | $100/state/month flat |
| Numeral | Small Sellers (Few States) | $75/filing, no monthly |
| Kintsugi | Startups | Free plan; $75/filing |
| TaxValet | Hands-Off Compliance | $1K-$3K/mo managed |
| Zamp | E-commerce/SaaS | Custom all-inclusive |
Understanding Pricing Models
Tax software pricing is rarely straightforward. Here's how vendors actually charge:
Transaction-Tier Model
Used by: Avalara, TaxJar
You estimate annual transaction volume and purchase a bucket of usage. This is the most common model for SMB and mid-market.
Watch Out: What Counts as a "Transaction"?
Some vendors count only completed sales. Others count every API call, including abandoned carts. TaxJar counts rate lookups as 1/10th of an order. This matters for high-traffic, low-conversion sites.
- Overage fees hit high-growth companies hard
- TaxJar uses "Flex Fees" to handle seasonal spikes
- Unused credits rarely roll over
Revenue-Based Model
Used by: Vertex
License costs are tied to your gross revenue, typically in basis points or tiered bands. Favored by enterprise providers.
The "Success Penalty"
Critics argue that calculating tax on a $100K machine costs the vendor the same as a $10 widget. For high-value, low-volume businesses, this model can be exorbitantly expensive.
Flat-Fee & Pay-As-You-Go
Used by: Sphere, Numeral, Stripe Tax
Newer challengers are attacking legacy pricing with radical transparency:
- Sphere: $100/state/month, unlimited transactions
- Stripe Tax: 0.5% per transaction
- Numeral: $75/filing, $150/registration, no monthly fee
When PAYG Breaks Down
At $100M in revenue, Stripe Tax's 0.5% fee = $500,000/year. That's far more than an enterprise license. PAYG works for small businesses, not scale.
Hidden Costs: The Real TCO
The sticker price often represents only 40-60% of actual annual spend. Here's what else you'll pay:
Connector & Integration Fees
- ERP connectors (NetSuite, SAP, Oracle) often require separate annual licenses
- Avalara for NetSuite can require $5K-$10K in professional services upfront
Filing & Remittance Fees
- Tax calculation ≠ tax filing - these are separate charges
- Avalara and TaxJar charge $25-$54 per return
- Filing monthly in all 45 taxing states = $27,000+/year just for filing
Exemption Certificate Management
- Essential for B2B businesses with tax-exempt customers
- Priced based on certificates stored, with overage fees
Detailed Vendor Analysis
Avalara - The Market Aggregator
Range: $4,391 to $71,000+/year
Strengths
- 700+ pre-built integrations
- Global VAT/GST coverage
- Comprehensive suite (calc, filing, exemptions, licensing)
- Rooftop-level accuracy via lat/long
Watch Out
- Opaque pricing, heavily negotiated
- Renewal increases of 20-50% reported
- Support quality criticized post-sale
- Shopify Plus users face 10x price jump from subsidized rates
Negotiation Tip
Demand renewal caps (CPI + 2%) in your initial contract. Leverage competitive quotes from Vertex or TaxJar.
Vertex - The Enterprise Standard
3x Avalara's median. Implementation can exceed $50K-$100K.
Strengths
- Gold standard for complex tax determination
- Edge deployment for zero-latency retail
- Deep ERP integration
- Superior support with dedicated account managers
Watch Out
- Implementation is a major IT project (months)
- Steep learning curve
- Cost-prohibitive for SMBs
- Revenue-based pricing penalizes growth
Best for: Big-box retailers, multinational manufacturers, telecom, Fortune 500. Companies with in-house tax teams wanting fine-grained control.
TaxJar (Stripe) - The Developer's Choice
Starter: $19 (200 orders). Professional: $99 (200 orders + API). Scales to ~$3,999/mo for 250K+ orders.
AutoFile Pricing
- $30-$35 per return (Professional includes 12 free credits/year)
- Prepaid bundle: 100 filings for $2,500 ($25/return)
- Unlimited bundle: ~$6,000-$7,500/year
TaxJar vs. Stripe Tax
Stripe Tax charges 0.5% per transaction. At $10M revenue, that's $50K vs. ~$12K for TaxJar subscription. Stripe Tax is convenience for small businesses; TaxJar is economical at scale.
Strengths
- Modern REST API (<75ms response)
- Flex Fees handle seasonal spikes
- Great Shopify/Amazon/Etsy integration
- Transparent pricing
Watch Out
- Limited support (email unless high tier)
- No audit assistance
- 200 orders/month base is modest
Stripe Tax - Native Payment Integration
Or $0.50 per API call. Tax Complete starts ~$90/mo with volume included.
Strengths
- Zero setup if already on Stripe
- Real-time calculation on Checkout/Billing/Invoicing
- Nexus threshold monitoring
- 600+ taxability categories
Watch Out
- Does NOT file returns or remit funds
- No exemption certificate management
- Only for Stripe transactions
- 0.5% expensive for high-value sales ($50 on a $10K invoice)
TaxCloud - Budget-Friendly U.S. Focus
No per-state filing fees. Unlimited filings included. Free plan for single-state basic use. SST certified - potentially free in 24 member states.
Strengths
- SST certified (free for qualifying sellers)
- Unlimited state filings in subscription
- 13,000+ jurisdiction coverage
- Free tax lookup APIs
Watch Out
- No international/VAT support whatsoever
- Smaller integration library
- Basic exemption certificate management
- UI more dated than competitors
Anrok - The SaaS Specialist
Startup tier for <$5M ARR. No per-transaction or per-filing fees.
Strengths
- Handles subscription edge cases (upgrades, downgrades, proration)
- Distinguishes taxable vs. exempt SaaS revenue
- U.S. + international VAT/GST in one system
- Deep billing integrations (Stripe, Chargebee, Zuora)
Watch Out
- Overkill for non-SaaS businesses
- Newer company (~2020), smaller track record
- Dense interface initially
Sphere & Numeral - The Flat-Fee Revolution
These providers attack the market by eliminating the "success penalty" of revenue-based pricing.
Sphere
$100/state/month
Unlimited transactions. Filing included.
A startup scaling from $10M to $100M in California sees zero compliance cost increase.
Numeral
$75/filing
$150/registration. No monthly fee.
Claims users spend 5 min/month on compliance. On-time filing guarantee with penalty coverage.
When Each Makes Sense
Sphere: High-revenue businesses wanting cost certainty across many states.
Numeral: Small sellers in few states. But costs scale linearly: 30 states = ~$2,250/month.
Kintsugi - AI-Driven Startup Solution
Includes nexus monitoring. Starter: $75/filing. Premium: custom with error insurance.
Strengths
- Free nexus monitoring and exposure tracking
- AI assistant for error minimization
- No-code integrations (Stripe, Shopify, Amazon)
- No long-term commitment required
Watch Out
- Newer platform, smaller track record
- Primarily U.S.-focused
- Fewer integrations than established players
Sovos - The Specialized Consolidator
Custom quotes only. Highly modular pricing.
Key Products
- ShipCompliant: Dominates wine/spirits DtC market
- 1099 Pro: Tax information reporting from $2.99/form
- S1 Platform: Global indirect tax with e-invoicing for CTCs (Brazil, Italy)
Best For Specialists
Strong choice for insurance companies (Premium Tax), wineries (DtC compliance), or 1099 reporting needs. Less suited as a generalist retail solution.
TaxValet & Zamp - Managed Services
For businesses that want to hand off sales tax entirely rather than manage software.
TaxValet
$1K-$3K/month
+ $3,500 onboarding
- Fractional tax department
- 360-degree Audit Protection guarantee
- VDAs for past non-compliance
- Dedicated team
Zamp
Custom all-inclusive
No overage fees
- White-glove managed service
- API + full service hybrid
- Accuracy and filing guarantees
- Free registrations for new states
Best for: Growing companies that hate dealing with sales tax, lack internal tax personnel, and value time over cost optimization.
Recommendations by Business Type
High-Growth E-Commerce
TaxJar or Sphere
TaxJar's Flex Fees handle seasonality. Sphere if you want predictable costs as you scale.
B2B SaaS Companies
Anrok
Purpose-built for subscriptions. Reduces risk of over-collecting on exempt software services.
Enterprise / Manufacturing
Vertex or Avalara
Deep ERP integration required. Vertex for audit defense; Avalara for lower entry price.
Budget-Conscious / U.S. Only
TaxCloud
SST certified, unlimited filings included. Free in SST member states for qualifying sellers.
Hands-Off / No Tax Team
TaxValet or Zamp
Premium pricing buys peace of mind, audit protection, and dedicated experts.
Early-Stage Startup
Kintsugi or Numeral
Start with free nexus monitoring. Pay per filing until complexity grows.
Key Takeaways
- •Calculate true TCO: Include connectors, filing fees, implementation, and renewal uplifts
- •Match pricing to trajectory: Transaction tiers penalize growth; flat fees reward it
- •Evaluate technical fit: API performance, integration depth, reliability SLAs
- •Consider your team: DIY software vs. managed services
- •Plan for complexity: International expansion, exemption certificates, audit defense
Always Negotiate
Get competitive quotes before signing. Initial contracts often include 50% discounts that disappear at renewal. Demand renewal caps in writing.