TaxJar Is the Shopify Sales Tax Software Worth Checking Out in 2023

Sales Tax Software

A lot of Shopify ecommerce sellers need sales tax assistance. The ones who have growing businesses are the most in need of this service, and if they are selling online, it’s only natural that the first place they’ll go to for a solution is the internet.

If you’re in this boat, chances are you’ve stumbled across different tax software and might need help with decision-making. In most cases, TaxJar will be on your shortlist, and we’re here to tell you why it’s our recommended sales tax software.

A Little Bit About TaxJar

TaxJar was founded in 2013 as an application to solve ecommerce sales tax problems. This application specializes in providing automation solutions across the sales tax journey. It covers mainly calculations, filing, and reporting.

The tax application has grown to more than 25,000 users since its founding. In 2021, Stripe Tax acquired the tax software with a plan to speed up its growth and provide solutions to a growing number of ecommerce sellers. 

Prominent Features of TaxJar

What makes TaxJar a popular sales tax application for many ecommerce sellers is the convenience and ease brought by its main features. Here’s what TaxJar offers in a nutshell.

AutoFile Sales Tax Automation

The AutoFile feature lets sellers delegate the tax submission to TaxJar. The application can forward sales tax forms and remittance amounts to authorities where sellers have nexus at the time they are due. This relieves the seller of any inconvenience in filling out forms or dealing with late payments.

Nexus Tracking and Notification

TaxJar can track sales and automatically calculate the amount of sales tax on a transaction. Then, it can attribute the sales tax to the proper nexus state and notify the seller once their taxable revenue reaches the state’s threshold.


The tax software collects volumes of sales tax data relevant to the ecommerce seller. Then, sellers can generate accurate reports in full detail, such as sales volume and sales tax collection data per nexus state.

Why Is TaxJar the Best Sales Tax Software for Shopify?

Regarding the benefits of Shopify and tax software integration, TaxJar is our top choice among the selection of sales tax software because of the following advantages.

One-Click Link

Integrating TaxJar to Shopify takes one click. That’s how easy it is for the tax software to connect to your store and start tracking revenue and sales tax information.

It Specializes in Sales Tax

TaxJar covers the entire life cycle of sales tax, from tracking, to calculation, filing, and remittance. Adding TaxJar to your Shopify store will be similar to fully automating your sales tax processes.

Reduced Calculation Errors

The tax software is fully optimized and is updated with all the sales tax laws. In addition, it has built its system to ensure calculations are updated with 99% accuracy. This has the potential to help you save money on taxes by avoiding overpayment errors.


TaxJar’s software is up and running 99% of the time. The servers are sufficient to cover traffic, and the software is secured and updated to ensure it’s always performing at an optimum level.

Responsive Customer Support

Sellers who are new to TaxJar will have a smooth onboarding process. Customer support is also reliable whenever sellers have questions about their sales tax amount or other technical concerns.

It Can Integrate With QuickBooks

QuickBooks Online is one of the most popular software used by accountants and sellers alike. So it’s a huge convenience for TaxJar to integrate with the accounting software. Not only will this bring sales tax information to the accounting software, but it will also help accountants process the amount and reflect it on the business’s accounting books without much number crunching.

Shopify Tax Software

Other Shopify Tax Software Worth Checking Out

Many other tax software applications can integrate with your Shopify store. A lot of them are competitive and are also worth considering. If TaxJar isn’t your business’s cup of tea, you can explore the following sales tax automation software available for Shopify.


A broad-ranging tax software, it can automate sales taxes and bill payments for your business. Quaderno is a close rival of TaxJar because it has many similar features such as the one-click integration to Shopify and other marketplaces such as Amazon.


If you’re selling outside of the US and tapping European markets, Eurora is a good addition alongside your TaxJar. Recently launched in 2021, the app is meant for European Union (EU) sales tax automation which covers collection and payment. This app can also be integrated with Shopify.


TaxCloud can automatically file sales tax in all 25 states. Apart from that, what really stands out for TaxCloud is its support. It can assist you in cases where a state auditor is tasked with reviewing your sales tax returns.

Tax Rex

Tax Rex isn’t a full-service sales tax automation tool, but it is an application that specializes in sales tax reporting. This software is built to deliver reliable US sales tax reports in a convenient, user-friendly, and easily read format.

Automate Your Ecommerce Sales Tax Management

Now that businesses are online and transactions come from multiple locations, automation is the ecommerce seller’s friend. That’s because manual processing and payments can be tedious and time-consuming.

Additionally, the lack of tax automation will also affect your accounting. Without easily available and accurate data, it may not be easy to produce accurate accounting information whenever a manager needs it.

That’s why tax automation is the new standard for ecommerce businesses. With TaxJar, the whole process is efficient and accurate. It’s also an awesome app to partner with accounting software such as QuickBooks. The combination of both will bring the best accounting for Shopify.

For more information and tips regarding ecommerce business solutions, explore our website.