Softwr

Accounting · head to head

Lago vs TaxJar

Lago logo

Lago

Accounting

Open-source billing infrastructure for usage-based models

From
Free
Rated
-
Full reviewWebsite
TaxJar logo

TaxJar

Accounting

Sales tax, simplified

From
Free
Rated
-
Full reviewWebsite

The short version

  • Each has a real cost: Lago free tier limited to 10,000 entities per month with 5M event cap; TaxJar both published plans include only 200 orders per month, so higher volume costs more
  • They diverge on capability: Lago covers Real-time usage metering, TaxJar covers Tax calculation.
  • Prices and features above were last checked on 30 August 2026.

Where they differ

Only the attributes on which Lago and TaxJar actually diverge.

Attributes where Lago and TaxJar differ
AttributeLagoTaxJar
Pricing modelFreemium with optional paid tiersusage-based
PlatformsWeb, Cloud, Self-hosted, On-premise, VPCWeb, Api
FoundedUnknown2013

Identical on both: starting price (Free), free tier (Yes), 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 Lago

  • Real-time usage metering
  • Multiple pricing models
  • Automated invoicing
  • Prepaid credits
  • Entitlements
  • Multi-currency support
  • Payment orchestration
  • Revenue analytics

Only in TaxJar

  • Tax calculation
  • AutoFile returns
  • Economic nexus tracking
  • Exemption certificates
  • Multi-channel support
  • Shopify
  • Amazon
  • WooCommerce

What people use each for

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

Lago

  • Building usage-based billing for high-volume APIs and infrastructurenot TaxJar
  • Implementing metered billing for AI and tokenized servicesnot TaxJar
  • Creating subscription and hybrid pricing modelsnot TaxJar
  • Managing multi-currency billing for global companiesnot TaxJar
  • Maintaining billing infrastructure without vendor lock-innot TaxJar

TaxJar

  • Calculating US sales tax at checkoutnot Lago
  • Reporting sales tax liability by state and jurisdictionnot Lago
  • Automatically filing state sales tax returnsnot Lago

Where each one falls short

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

Lago

  • Free tier limited to 10,000 entities per month with 5M event cap
  • No specific pricing published for Pro annual plan or Scale plan
  • Self-hosted and on-premise deployments require engineering resources
  • Community support only on free tier
  • Scale plan requires annual contracts and sales engagement

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

Lago

Free
  • Build (Free)Free
    • 10,000 managed entities per month
    • 5M usage events per month
    • 1K events per second rate limit
  • Pro$399/month
    • 10,000 entities included (graduated pricing to 100K)
    • 25M usage events included (to 500M with graduated rates)
    • 10K events per second (upgradeable to 100K)
  • Scale$null/custom
    • Custom entity and event volumes
    • 50K events per second (upgradeable to 100K)
    • RBAC and SSO (SAML)

TaxJar

Free
  • Starter$39/month
    • Up to 200 orders per month
    • 3 data integrations
    • API access included
  • Professional$99/month
    • Up to 200 orders per month
    • 10 total data integrations
    • 10,000 API calls per minute

Which should you pick?

Choose Lago if

  • You need real-time usage metering.
  • You want to start without paying.
  • You work on Web, Cloud, Self-hosted, On-premise, VPC.
  • You also want multiple pricing models.
Lago review

Choose TaxJar if

  • You need tax calculation.
  • You want to start without paying.
  • You work on Web, Api.
  • You also want autofile returns.
TaxJar review

Questions people ask

Is Lago or TaxJar better?
Neither clearly leads. Lago starts at Free and TaxJar at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Lago or TaxJar?
Lago starts at Free and TaxJar at Free.
Does Lago or TaxJar run on more platforms?
Lago runs on Web, Cloud, Self-hosted, On-premise, VPC. TaxJar runs on Web, Api.
Can I use Lago for free?
Both have a free tier, so you can try either at no cost before committing.
What is Lago best used for?
Lago is most often used for building usage-based billing for high-volume apis and infrastructure, implementing metered billing for ai and tokenized services, creating subscription and hybrid pricing models, managing multi-currency billing for global companies. Of those, building usage-based billing for high-volume apis and infrastructure and implementing metered billing for ai and tokenized services are not what TaxJar is typically brought in for.
What can Lago do that TaxJar cannot?
Lago covers Real-time usage metering, Multiple pricing models, Automated invoicing, Prepaid credits. TaxJar covers Tax calculation, AutoFile returns, Economic nexus tracking, Exemption certificates.

Answered from the vendors’ own pages

Lago: Can I use Lago open-source for free?

Yes, Lago is open-source under the AGPLv3 license and can be self-hosted. The cloud-based Build plan is also free with limits of 10,000 entities and 5M events per month.

Source
TaxJar: How much does TaxJar cost?

TaxJar pricing starts at $39/month for Starter and $99/month for Professional. Save 10% or more with annual pricing. A 30-day free trial is available.

Source
Lago: What payment providers does Lago integrate with?

Lago integrates with Stripe and Adyen for payment processing. It is not a payment processor itself but orchestrates payments through these providers.

Source
TaxJar: What is the difference between TaxJar Starter and Professional?

Both plans handle up to 200 orders/month, but Professional includes phone support, dedicated success manager, 10 users, and more data integrations and API capacity.

Source
Lago: Does Lago support multiple currencies?

Yes, Lago supports multi-currency billing with automatic currency conversion for global businesses.

Source
TaxJar: Does TaxJar offer discounts for annual billing?

Yes, TaxJar saves customers 10% or more when paying annually instead of monthly for both Starter and Professional plans.

Source
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