Softwr

Software · head to head

Avalara vs Melio

Avalara logo

Avalara

Software

Tax compliance done right

From
$29/month
Rated
-
Full reviewWebsite
Melio logo

Melio

Software

Simple business payments

From
Free
Rated
-
Full reviewWebsite

The short version

  • Only Melio has a free tier, so it costs nothing to try first.
  • Each has a real cost: Avalara plans start at $699 per state per year, so multi-state sellers multiply that figure rather than paying one subscription; Melio go (free) plan limited to one user only
  • They diverge on capability: Avalara covers Tax calculation, Melio covers Vendor payments.

Where they differ

Only the attributes on which Avalara and Melio actually diverge.

Attributes where Avalara and Melio differ
AttributeAvalaraMelio
Starting price$29/monthFree
Pricing modelsubscriptionfreemium
Free tierNoYes
PlatformsWeb, ApiWeb, Mobile app
Founded20042018

Identical on both: user rating (Not yet rated), category (Unknown).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in Avalara

  • Tax calculation
  • Returns filing
  • Exemption management
  • Document management
  • Real-time rates
  • NetSuite
  • Shopify
  • Magento

Only in Melio

  • Vendor payments
  • Card to check
  • Payment scheduling
  • Approval workflows
  • QuickBooks sync
  • Xero
  • FreshBooks
  • Bank-level encryption

Both cover

  • QuickBooks
  • SOC 2
  • Web support

What people use each for

The jobs each tool is most often brought in to do.

Avalara

  • Real-time sales tax calculation at checkoutnot Melio
  • Multi-state and multi-jurisdiction tax determinationnot Melio
  • VAT, lodging, communications and excise tax calculationnot Melio
  • Feeding tax results into an ERP or ecommerce platform through the APInot Melio

Melio

  • Accounts payable automationnot Avalara
  • Bill management and payment schedulingnot Avalara
  • Multi-vendor payment processingnot Avalara
  • Invoice receivables and payment collectionnot Avalara

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

Avalara

  • Plans start at $699 per state per year, so multi-state sellers multiply that figure rather than paying one subscription
  • Billed by transaction, where one API call is one transaction, so cost tracks invoice volume
  • The free option is limited to the Streamlined Sales Tax programme, in up to 25 states and only for qualifying businesses

Melio

  • Go (free) plan limited to one user only
  • ACH charges £0.50 per transaction beyond monthly allowance (5-50 free depending on plan)
  • Card payment fees range from 2.9% to 2.9% plus £75 maximum
  • International payments limited to select currencies only
  • NetSuite integration only available in Unlimited plan (£80/month minimum)

Pricing, plan by plan

Avalara

$29/month
  • AvaTax$50/month
    • Tax calculation
    • Exemption certificates
    • Returns filing

Melio

Free

No published plan breakdown. See the Melio review.

Which should you pick?

Choose Avalara if

  • You need tax calculation.
  • You work on Web, Api.
  • You also want returns filing.
Avalara review

Choose Melio if

  • You need vendor payments.
  • You want to start without paying.
  • You work on Web, Mobile app.
  • You also want card to check.
Melio review

Questions people ask

Is Avalara or Melio better?
Neither clearly leads. Avalara starts at $29/month and Melio at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Avalara or Melio?
Melio has a free tier; the other does not. Paid plans start at $29/month for Avalara and Free for Melio.
Does Avalara or Melio run on more platforms?
Avalara runs on Web, Api. Melio runs on Web, Mobile app.
Can I use Melio for free?
Yes. Melio has a free tier, so you can try it without paying. Avalara starts at $29/month.
What is Avalara best used for?
Avalara is most often used for real-time sales tax calculation at checkout, multi-state and multi-jurisdiction tax determination, vat, lodging, communications and excise tax calculation, feeding tax results into an erp or ecommerce platform through the api. Of those, real-time sales tax calculation at checkout and multi-state and multi-jurisdiction tax determination are not what Melio is typically brought in for.
What can Avalara do that Melio cannot?
Avalara covers Tax calculation, Returns filing, Exemption management, Document management. Melio covers Vendor payments, Card to check, Payment scheduling, Approval workflows. Both handle QuickBooks, SOC 2, Web support.
ShareXLinkedInRedditWhatsAppEmail

Related pages

More on Avalara

More on Melio

Keep looking

Other head to heads