Accounting & Finance · head to head
Avalara vs TaxJar
The short version
- 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; TaxJar both published plans include only 200 orders per month, so higher volume costs more
- They diverge on capability: Avalara covers Returns filing, TaxJar covers AutoFile returns.
Where they differ
Only the attributes on which Avalara and TaxJar actually diverge.
Identical on both: starting price ($29/month), pricing model (subscription), free tier (No), platforms (Web, Api), user rating (Not yet rated), category (Accounting & Finance).
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
- Returns filing
- Exemption management
- Document management
- Real-time rates
- QuickBooks
- NetSuite
- Magento
- GDPR
Only in TaxJar
- AutoFile returns
- Economic nexus tracking
- Exemption certificates
- Multi-channel support
- Amazon
- WooCommerce
- Stripe
- Bank-level encryption
Both cover
- Tax calculation
- Shopify
- SOC 2
- Web support
- Api 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 TaxJar
- Multi-state and multi-jurisdiction tax determinationnot TaxJar
- VAT, lodging, communications and excise tax calculationnot TaxJar
- Feeding tax results into an ERP or ecommerce platform through the APInot TaxJar
TaxJar
- Calculating US sales tax at checkoutnot Avalara
- Reporting sales tax liability by state and jurisdictionnot Avalara
- Automatically filing state sales tax returnsnot 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
TaxJar
- Both published plans include only 200 orders per month, so higher volume costs more
- The Starter plan at $39 per month allows only 3 data import integrations
- AutoFile state filings are metered: Starter includes 2 credits a year and each extra filing costs $50, Professional includes 4 and each extra costs $55
- Real time tax calculation API access requires the Professional plan at $99 per month
- Phone support, a Customer Success Manager and a dedicated onboarding specialist require the Professional plan
- The developer sandbox requires the Professional plan
- The 10% saving requires annual billing
Pricing, plan by plan
Avalara
$29/month- AvaTax$50/month
- Tax calculation
- Exemption certificates
- Returns filing
TaxJar
$29/month- Starter$19/month
- Sales tax calculation
- Reporting
- 1 state filing
Which should you pick?
Choose Avalara if
- You need returns filing.
- You work on Web, Api.
- You also want exemption management.
Choose TaxJar if
- You need autofile returns.
- You work on Web, Api.
- You also want economic nexus tracking.
Questions people ask
- Is Avalara or TaxJar better?
- Neither clearly leads. Avalara starts at $29/month and TaxJar at $29/month, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
- Which is cheaper, Avalara or TaxJar?
- Avalara starts at $29/month and TaxJar at $29/month.
- Does Avalara or TaxJar run on more platforms?
- Both run on Web, Api, so platform support will not decide this one for you.
- 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 TaxJar is typically brought in for.
- What can Avalara do that TaxJar cannot?
- Avalara covers Returns filing, Exemption management, Document management, Real-time rates. TaxJar covers AutoFile returns, Economic nexus tracking, Exemption certificates, Multi-channel support. Both handle Tax calculation, Shopify, SOC 2, Web support.