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7 Min. Read

The 7 Best Sales Tax Software for Calculation

The 7 Best Sales Tax Software for Calculation

Sales tax software helps you calculate the correct tax rates when billing customers. This is an essential part of a seamless pay-out experience. 

Selling products to U.S.-based customers means calculating around 45 rates of sales tax. 

Not only that, but states vary in what products and services are taxable. This means regular checking for sales tax exemption and making sure the correct tax is paid. 

Keeping up with sales tax requirements can be a time-consuming and tiresome task. 

Nobody has time for that, right? Especially not you as a busy business owner. 

Automating the process of calculating sales tax rates saves time and effort. Luckily, there are robust sales tax solutions available. 

Software is available to help you calculate the correct rate for the state your customer is in. The software will then apply the appropriate rate to your invoices. 

The benefit to you? Sales tax compliance, a simpler invoicing process, and a happy customer. 

Here, we'll take a look at seven of the best sales tax software solutions that you can use for calculations.

Here’s What We’ll Cover:

AvaTax ST

FileLINK 

CCH SureTax

Intuit ProSeries Tax

Sovos Intelligent Compliance Cloud

TaxCloud

TaxJar

Conclusion

  • AvaTax ST

AvaTax ST is a cloud-based solution made by Avalara. 

It claims to have a team of tax experts on hand so that it can deal with your business’s tax compliance for you. 

This helps to give you as a business owner peace of mind that you’re always applying accurate rates. 

Best features of AvaTax ST 

  • The system uses geolocation to calculate applicable sales tax. This is more effective, accurate, and advanced than using zip codes, as many other platforms do.
  • Payment plans are available and tailored to the needs of your business 
  • Alerts for new tax obligations 
  • Automation of goods and shipping 
  • Integration with over 700 sales processors 
  • It can calculate more than sales tax. For example, it can calculate consumer use tax, excise tax, and communications tax. It also identifies any non-taxable sales where appropriate.
  • AvaTax ST updates its rates all the time. It's based on location, item, legislation, and regulatory change. 
  • Advanced transaction rules which support multi-product orders, bundles, and sales in different areas.
  • Over 1000 integration options available. There is also the facility to create APIs and connect AvaTax with other software you use. 
  • FileLINK 

FileLINK's made by Sales Tax DataLINK. It is a program that will help you calculate, and then file, your sales taxes. 

This software is available as a cloud-based, web, or SaaS solution. It is suitable for businesses of any size. 

FileLINK has a strong reputation for precision and elimination of errors. 

Best features of FileLINK 

  • FileLINK is usable across many different jurisdictions 
  • Address validation option to ensure you have the right customer location 
  • Error alerts help identify jurisdictional issues, data errors, or tax variants
  • The software supports manufacturers and general contractors as opposed to retail only 
  • Offers more facilities than sales tax calculation. For example, it can run detailed reports on sales, and audits. It can also help with conducting research. 
  • The system is generally more suitable for larger businesses with high volume sales 
  • Pricing plans are available to account for different needs 
  • Training is available through webinars and online sessions. Customer support is available during business hours 
  • CCH SureTax

CCH SureTax knows everything there is to know about sales tax. Like all the sales tax software on our list, it is now available on the cloud.

CCH Sure Tax comes with various modules that you can use to handle the different aspects of sales tax.

Best features of CCH SureTax

  • For US and Canadian based customers, it calculates sales tax rates in real-time
  • It's designed to remove the need for manual data processing. The system deals with end-to-end sales tax automation.
  • In-house tax researchers are making sure that the content remains accurate. This will help to mitigate any risk for you and your business of miscalculations.
  • Easy integration with other systems and platforms you may use 
  • It makes the sales tax return process so much easier. This is because it holds and prepares all the data you will need when it comes to filing 
  • Intuit ProSeries Tax

Intuit provides bookkeeping and tax advice for accountants and smaller businesses. 

Chances are you’ll have come across QuickBooks Online which is an Intuit product. 

It’s safe to say that it knows what it’s doing when it comes to all things sales and tax-related. 

Best features of Intuit ProSeries Tax 

  • Contains similar features that you might find when using QuickBooks Online 
  • Most suitable for accountants and those looking for a comprehensive sales tax solution 
  • Run comprehensive reports on taxes and track customer transactions 
  • Compatible with lots of financial services software 
  • Sovos Intelligent Compliance Cloud

Sovos is another cloud-based software. 

It works well as sales tax software, but it also has much more to offer. 

Compliance and regulations are tightening in the world of global finance. 

In response, Sovos has emerged as the ultimate in tax calculation solutions.

Best features of Sovos Intelligent Compliance Cloud 

  • Centralized administration of the tasks associated with sales tax filing 
  • Make reconciliations easier with a transaction tracking option 
  • It is robust enough for larger businesses like financial institutions, retail, and manufacturing. It is especially useful to those working in many jurisdictions.
  • Customizable and flexible to your individual business needs 
  • TaxCloud

TaxCloud is another piece of cloud-based sales tax calculation software. 

It has a reputation as one of the best state-subsidized compliance services. 

Best features of TaxCloud 

  • It works with 25 member states to ensure it has the most up to date tax information possible
  • The system is very affordable compared to other online sales tax calculation options 
  • It keeps things simple for its customers. It does this by only offering two services: TaxCloud Core and TaxCloud Services.
  • The software is scalable to account for your needs 
  • It offers more than sales tax calculation. It also offers services such as member states’ indemnification and filing. 
  • Can integrate with other apps like eBay, Shopify, Amazon, and Stripe. This makes it ideal for use by an online seller.
  • Can integrate with financial and bookkeeping software 
  • Works especially well for outsourcing the tax calculation process to a third party 
  • TaxCloud can also help you with auditing as and when necessary 
  • TaxJar

TaxJar is a great platform for e-commerce sellers. 

It's designed to help manage your entire tax lifecycle. Calculation of sales, comprehensive reports, filing, nexus tracking— it does it all.

Best features of TaxJar 

  • Automation of both the accounting for, and auto-filing of, sales taxes 
  • An integrated address validation tool 
  • Powerful analysis tools are available. This can help you keep on top of everything you need to know and remain in compliance with laws and regulation 
  • It can help your business by also dealing with exemptions, reports, audit trails, etc. 
  • It is powerful enough to handle even the busiest of shopping days with no downtime. That makes it perfect for those with large e-commerce companies 
  • It is a low-cost option 
  • Excellent integration options for sellers, supporting platforms such as Amazon, PayPal, and eBay. 

Conclusion

Sales tax calculation, payment, and recording are time-consuming work for business owners. Depending on which county or state you’re selling in, it’s easy to run into problems.

Using sales tax calculation software takes on some of the heavy lifting. 

It will also help you make sure that you’re not caught out by out-of-date information or human error. 

Cloud-based software can also help you manage your tax obligations. Use it to file your sales tax return no matter where you are, and often from a mobile app. 

Do you need help understanding how sales taxes work? 

Want to learn how you can record, invoice, and pay sales tax? 

FreshBooks has a large cache of other information to help you get up to speed!


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