Softwr

Accounting · head to head

Avalara vs TaxAct

Avalara logo

Avalara

Accounting

Tax compliance done right

From
$29/month
Rated
-
Full reviewWebsite
TaxAct logo

TaxAct

Accounting

Get your maximum refund, guaranteed

From
Free
Rated
-
Full reviewWebsite

The short version

  • Only TaxAct has a free tier, so it costs nothing to try first.
  • Each has a real cost: Avalara pricing varies significantly based on products, integrations, transaction volume, and jurisdictions; TaxAct free edition available only to approximately 40% of filers
  • Prices and features above were last checked on 31 August 2026.

Where they differ

Only the attributes on which Avalara and TaxAct actually diverge.

Attributes where Avalara and TaxAct differ
AttributeAvalaraTaxAct
Starting price$29/monthFree
Pricing modelsubscriptionone-time
Free tierNoYes
PlatformsWeb, ApiWeb
Founded2004Unknown

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

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
  • QuickBooks
  • NetSuite
  • Shopify

Only in TaxAct

Nothing recorded that Avalara does not also cover.

What people use each for

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

Avalara

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

TaxAct

  • Individual tax filingnot Avalara
  • Self-employed tax preparationnot Avalara

Where each one falls short

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

Avalara

  • Pricing varies significantly based on products, integrations, transaction volume, and jurisdictions
  • No free tier or trial period published
  • Enterprise sales model requires contacting sales specialists for customized quotes

TaxAct

  • Free edition available only to approximately 40% of filers
  • Pricing excludes separate state filing fees
  • Xpert Full Service pricing available on request only

Pricing, plan by plan

Avalara

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

TaxAct

Free
  • Free EditionFree
    • W-2 income
    • Unemployment
    • Basic credits and deductions
  • Deluxe$59.99/tax-year
    • All Free Edition features
    • Home ownership deductions
    • Childcare and dependent care
  • Premier$99.99/tax-year
    • All Deluxe features
    • Investment income and capital gains
    • Cryptocurrency reporting
  • Self-Employed$109.99/tax-year
    • Complete business support
    • For contractors, freelancers, and sole proprietors

Which should you pick?

Choose Avalara if

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

Choose TaxAct if

  • You want to start without paying.
TaxAct review

Questions people ask

Is Avalara or TaxAct better?
Neither clearly leads. Avalara starts at $29/month and TaxAct at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Avalara or TaxAct?
TaxAct has a free tier; the other does not. Paid plans start at $29/month for Avalara and Free for TaxAct.
Does Avalara or TaxAct run on more platforms?
Avalara runs on Web, Api. TaxAct runs on Web.
Can I use TaxAct for free?
Yes. TaxAct 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 TaxAct is typically brought in for.
What can Avalara do that TaxAct cannot?
Avalara covers Tax calculation, Returns filing, Exemption management, Document management.

Answered from the vendors’ own pages

Avalara: What are the starting prices for Avalara services?

Avalara Tax Calculation and Returns Compliance Package starts at $699. License Guidance is available for as low as $119. Sales Tax Registration costs $403 per location.

Source
TaxAct: How much does TaxAct cost?

TaxAct offers a free edition for approximately 40% of filers, Deluxe at $59.99, Premier at $99.99, and Self-Employed at $109.99 per tax year.

Source
Avalara: How does Avalara's pricing scale?

Avalara uses volume-based pricing that varies based on the number of integrated business applications, volume of monthly sales transactions, number of states or jurisdictions for tax collection, and Streamlined Sales Tax enrollment. Pricing scales with business growth and transaction volume.

Source
TaxAct: Is TaxAct truly free for eligible filers?

Yes, TaxAct's Free Edition is available at no cost for W-2 employees, students, and filers meeting basic income and deduction requirements.

Source
TaxAct: What is the difference between Premier and Deluxe plans?

Premier adds support for investment income, capital gains, cryptocurrency, rental properties, and home sale reporting compared to Deluxe.

Source
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