Are there charges for using TaxCloud?

TaxCloud is paid for by the states (so it's free for you!) when you use our Automated Compliance service. With Automated Compliance, you collect sales tax in the following 24 Streamlined 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 you've collected and then file returns in those states on your behalf. 

We will also calculate sales tax for your online orders in any other [non-Automated] states that you designate by adding a business address on the Locations page or selecting a state on the Tax States page.  In addition to sales tax calculation, we will produce monthly reports that provide jurisdictional detail needed to do your own filing. Or, alternatively, we can file for you for a small fee.  

Please see below the different ways you can configure your TaxCloud account and the costs associated with each option.

1.) As mentioned above, TaxCloud will calculate, file and remit on your behalf for free since the states pay us when you collect sales tax in the 24 Streamlined states. In fact, you can use TaxCloud for free even if you also have to collect in a single non-streamlined states (e.g. CA), so long as you collect in the 24 Streamlined states.

For example, say you must collect sales tax in WI, TN, MI and CA. In that case, you may want to register for the streamlined program and collect in the 24 Streamlined states (since WI, TN and MI are among the 24 states that participate in that program). TaxCloud would then file and remit for you in those states and you would file and remit in CA. There would be no cost to you in this example.  

 2.) In the next example, everything is the same as above except we’ll assume you also must collect in TX and NY. In that case, TaxCloud would not be free. Your cost would depend on who files and remits for your business in the non-streamlined states.

If TaxCloud files and remits for you, the fee is between 0.125% and 0.50% of your sales in the given non-streamlined state. If you do it yourself, however, TaxCloud only charges for your API calls in that state.

3.) The last option is to not participate in the streamlined program and, instead select the individual states where you want TaxCloud to calculate sales tax. In this case, you only pay TaxCloud for API calls. (You would be responsible for filing yourself in the given state(s).)

You can see our API fee purchasing options at the bottom of our Home Page.

 

Have more questions? Submit a request

Comments