Managing sales tax for your online store can be a complex and time-consuming task, especially as your business wants to grow and expand to new regions. It is a reason why Shopify Sales Tax Apps are released. These apps automate the entire sales tax process, streamlining calculations, ensuring accurate tax collection across different states or countries, and even filing tax returns on your behalf. By leveraging a Shopify Sales Tax App, you can focus on running your business with peace of mind, knowing your sales tax is handled efficiently and accurately.
In today’s article, we listed a collection of 6 best Shopify Sales Tax Apps that will help you manage sales tax rules efficiently. Now, let’s check them out.
What is the necessity of using Shopify Sales Tax App?
Although Shopify offers basic sales tax settings, the complexity of tax regulations requires developers to design special Shopify Sales Tax apps to help merchants handle this task productively. Sales tax regulations can be complex and vary widely across jurisdictions, so a Shopify Sales Tax App helps ensure that your business complies with the specific tax rules of each region, reducing the risk of non-compliance and associated penalties.
Additionally, sales tax rates can vary not only by state but also within counties and municipalities. By using a sales tax app, you can automate the calculation process in real-time during checkout, reducing errors and providing accurate tax amounts for customers. Moreover, these apps also automatically implement filing sales tax returns. As a result, this not only saves time but ensures that filings are done accurately and promptly, reducing the burden on businesses.
Further, using these tools, you can get a comprehensive view of your transactions in a clear dashboard. This centralized reporting simplifies the analysis of financial data for better decision-making.
6 Best Shopify Sales Tax Apps
Tax Rex ‑ Sales Tax Automation
Sales Tax Automation is a necessary Shopify Sales Tax App that you should use to handle the complexities of tax return filling, accurate reporting and effortless state registrations. In addition, this app helps you never miss a new state’s threshold again because Tax Rex keeps you informed with real-time alerts that allow you to register effortlessly in new U.S. states. As a result, you can easily resolve the sales tax with efficiency and accuracy and focus more time on the growth of your store.
One of TaxRex’s outstanding features is its ability to generate detailed reports based on the taxes already collected in Shopify. Hence, you don’t need to implement the tedious process of manually compiling data. This feature ensures that your tax reports meet each state’s specific criteria, giving you the peace of mind that comes with precise compliance. Moreover, it can ignore orders imported from marketplaces like Ebay, Amazon, etc.
Main features:
- Ensure on-time tax return filings while you focus on business
- Precise sales tax reports tailored to the state’s requirements
- Stay informed on new state nexus thresholds
- Simplified new state registration for compliance
- Ability to ignore orders imported from Marketplaces like Amazon, Ebay, etc
Pricing plans:
- Startup: $5/month
- Growth: $10/month
- Advanced: $20/month
Sales Tax Automation
Just like Tax Rex, Sidr Tax is also the go-to solution for those who are looking for a swift and seamless approach to US sales tax compliance. This app takes responsibility for sales tax from initiation to filing. By using this app, reports are meticulously generated based on the actual tax you’ve collected, which provides you with unparalleled accuracy in your sales tax reporting.
Additionally, it allows you to see all your state sales in a single view, so you can easily understand how your gross sales are changing. Further, it provides you with a sales and tax dashboard which visualizes the sales and tax trends of your store. This feature ensures that you have a clear picture of your financial obligations, making budgeting and financial planning more effective.
Main features:
- Fully automate your sales tax filing and always stay on schedule
- Know exactly when you need to start collecting taxes
- Sales tax calculations always up to date and export ready
- Obtain sales tax permit for you at the right time
Pricing plans:
- Starter: $19/month
- Growth: $39/month
- Enterprise: $89/month
TaxJar Sales Tax Automation
TaxJar is specially designed to provide merchants with a comprehensive solution that automates tedious tasks such as precise sales tax rate calculations, product classification and multi-state filing. With the assistance of TaxJar, the process of state sales tax filing becomes easier due to the app’s automatic electronic filing service.
Additionally, this app uses data from your e-commerce platforms or ERP systems to meticulously prepare and submit accurate returns along with remittances. Plus, the app consolidates orders from various e-commerce channels into a centralized dashboard, granting you and your team access to transaction details and comprehensive state-by-state reports with breakdowns for city, county, and special districts.
Main features:
- Instantly calculate accurate sales tax at checkout
- Get detailed, up-to-date reports on sales and sales tax collected or due by state and jurisdiction
- Automatically submitting returns and remittance to each jurisdiction
Pricing plans:
- Starter 200: $19/month
- Starter 500: $29/month
- Starter 1k: $49/month
- Starter 2.5k: $99/month
Taxes Automation by Quaderno
With the help of the Taxes Automation app developed by Quaderno, you can no longer be under a lot of stress due to tax rules. It will take charge of your sales tax, VAT, and GST responsibilities. Thanks to that, you can focus on your business growth without worrying about the complexities of tax regulations.
In addition, the app seamlessly applies the correct local tax rates to every sale, calculating taxes instantly during checkout. It is also packed with a lot of robust reporting features that help you gain precise insights into the amount of sales tax, VAT, or GST collected.
Another great feature is that the app automatically generates invoices after the sales. These invoices not only comply with local tax rules but are also translated into your customer’s language and currency, ensuring a smooth and personalized transaction process.
Main features:
- Track tax thresholds worldwide
- Send tax-compliant invoices worldwide
- File your taxes in minutes
Pricing plans:
- Startup: $49/month
- Business: $99/month
- Growth: $149/month
TaxCloud’s Simple Sales Tax
Using Taxcloud’s Simple Sales Tax is regarded as a prefect way to handle sales tax rates across the vast landscape of 13,000+ jurisdictions in the U.S. This robust app not only ensures the precise collection of the right tax amount at the moment of transaction but also guarantees 100% accuracy in filing and efficient management of audits as they arise.
Moreover, this app helps you streamline the complex task of calculating sales tax rates. Thus, merchants effortlessly collect the correct amount of tax from customers, regardless of location or product sold. Notably, with TaxCloud, you can keep up with the ever-evolving sales tax regulations, and gain a comprehensive view of customer transactions and tax liability through TaxCloud’s detailed sales tax reports.
Main features:
- Automated order imports into TaxCloud
- Return-ready sales tax liability reports by jurisdiction
- Sales tax recalculations done by TaxCloud for SST returns
- Economic nexus threshold tracking and notification
Pricing plans:
- Data Connector: $9/month
- Starter: $199/annually
- Premium: $799/annually
EZ Sales Report + Tax Report
EZ Sales Report + Tax Report is a free Shopify Sales Tax App that is suitable for merchants with tight budgets. It offers a user-friendly interface that enables the effortless generation of detailed sales reports for each USA state. Plus, this app provides you with a quick overview of total sales and order numbers in each state. Further, merchants can efficiently estimate sales tax per state, ensuring comprehensive financial planning and compliance with tax regulations.
Main features:
- See a snapshot of all your sales by U.S. state
- Sort U.S. states by the most number of orders.
- Easily sort U.S. states by the most amount of sales
Pricing plans:
- Completely free
The final thoughts
We have just provided with top 6 best Shopify Sales Tax Apps to help you effectively manage your sales tax. Now, it’s time for you to carefully consider and choose the best app that meets your requirements. If you find our blog useful, don’t hesitate to share it with your friends.
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