No Fees Required
TaxCloud is free when you use our Automated Compliance service. With Automated Compliance, you will be collecting sales tax in the following 24 states: AK, GA, IA, IN, KS, KY, MI, MN, NC, ND, NE, NJ, NV, OH, OK, RI, SD, TN, UT, VT, WA, WI, WV, WY. We will debit your account for the taxes collected and file returns in those states. With Automated Compliance, there is no fee because we are paid by the states.
We will also calculate sales tax for your online orders in any other states that you designate on the Locations page. In addition to this calculation, we will produce monthly reports that provide all the jurisdictional detail needed to do your own filing. We can only file in the above 24 states.
However, if you choose not use our Automated Compliance service (so, the states do not pay us), then you will have to pay a monthly service fee, which is determined each month, based upon your activity for that month, in three steps:
- Do you capture or complete at least 5% of your orders? If so, your service fee will be a percentage of the sales tax amounts calculated for remittance (detailed below).
- If you do not capture or complete at least 5% of your orders, then your monthly service fee will be two cents ($0.02 USD) per API call.
- Finally, if the service fees calculated under either method amount to less than our $10 (our Minimum Monthly Service Fee), then that $10 Minimum Monthly Service Fee will apply.
Percentage Monthly Service Fee
If five percent or greater (5%) [more than five (5) out of any one-hundred (100)] TaxCloud Lookup(s) result in TaxCloud Transaction(s) then your Monthly Service Fee matches the schedule ordinarily paid to us by the states (when Automated Compliance is enabled), as follows:
|Tier||Annual Tax Remittances Due (USD)||Percentage of Sales Tax Remittance (resets January 1st)|
|1||Up to $250,000.00||8%|
|2||$250,000.01 to $1,000,000.00||7%|
|3||$1,000,000.01 to $2,500,000.00||6%|
|4||$2,500,000.01 to $5,000,000.00||5%|
|5||$5,000,000.01 to $10,000,000.00||4%|
|6||$10,000,000.01 to $25,000,000.00||3%|
To use Manual Compliance, log in to your TaxCloud account, turn off Automated Compliance, and provide your payment information.
We do not charge any fees for installing TaxCloud. However, occasionally our shopping cart or e-commerce platform partners may charge you a fee for making TaxCloud available to you. Unfortunately, we have no say in whether these partners charge a fee or how much the fee is.