7 Best Tax Apps for Shopify

When you shop online, especially for items that may be taxable, it is important to know whether or not you will have to pay taxes on your purchase. While most eCommerce sites do their best to give the consumer the information they need to make an informed decision about taxation of their purchase, some Shopify tax apps can help you file and remit sales tax returns as well as provide detailed reports regarding store purchases and revenue generated.

Some of these applications are designed solely to handle sales tax for Shopify stores while others integrate more deeply into the store’s back-end systems in a way that helps a shop owner stay organized and remain compliant with state and federal business laws.

What are the Best Tax Apps for Shopify in 2022?

These are our picks for the best Shopify tax apps for 2022.

1. TaxJar

The first Shopify tax app on our list is TaxJar, which has been called the “Swiss Army Knife of Shopify store tools” by Entrepreneur Magazine. This Shopify tax app offers different plans but you can use it at no cost for any shop that makes less than $20,000 annually.

It is designed specifically to handle sales tax filing and remittance across states where your business has nexus. The information provided about each shop’s purchase history allows shop owners to know exactly what they owe in taxes with ease.

If a shop owner uses TaxJar to file their sales tax returns they are even allowed access to live support from the company’s TAX experts during tax season. This Shopify tax app is especially popular with shop owners who sell on Amazon as well since the integration allows shop owners to conveniently import all of their Amazon sales data directly into TaxJar.

Key features include:

• Automatic sales tax calculation for Shopify stores with Taxjar sales tax automation.
• TaxJar’s proprietary Average Sale Price technology calculates accurate cost-of-goods-sold figures
• Access to expert TAX help, including live access during tax season
• Detailed tax receipts and tax reports

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2. Shopper Approved

Another Shopify tax app that is especially useful when seller feedback and reviews are an important component of your shop’s online presence is Shopper Approved.

This Shopify tax app integrates seamlessly into Shopify and automatically notifies prospective buyers if their purchase will or will not result in a tax liability depending on the buyer’s location. It also provides shop owners with the ability to set different shipping rates based on where will be sent, which can be helpful for shop owners selling internationally.

This Shopify tax app is especially useful to shop owners based in the United States because it provides reports about how to shop visitors are searching for your shop and what states they come from, which could help you identify additional sales opportunities. The pros and cons include:

Key features include:

• Sets shipping rates based on shop domain, shop location, and where items ship
• Receive notifications to seller email when shopper requests a tax-free purchase
• Shopper Approved also provides shop owners with a report about which states shop visitors come from according to the shop’s domain

3. Taxify

The next Shopify tax app is Taxify. While this Shopify tax app does not allow you to use it for free, they do charge a flat fee of $29/month per eCommerce store regardless of how many transactions take place throughout the year.

One major benefit of using this Shopify tax app comes from its ability to integrate with ShopSync, which provides shop owners access to over 40 different shopping cart platforms including BigCommerce, Magento, and WooCommerce.

You can even choose which individual platforms will have access to Shopify’s order data. This Shopify tax app also has the ability to import Shopify sales data directly from Amazon, eBay, and Etsy.

Key features include:

• Automatically calculates Shopify sales tax.
• All Shopify orders automatically pass through Taxify for tax calculation and reporting
• Supports all major shipping carriers
• Integrates with popular shopping cart platforms such as BigCommerce, Magento and Viperchill

4. TaxCloud

The next Shopify tax app is TaxCloud. This Shopify tax app helps simplify sales tax filing for shop owners by making it easy to organize transactions into organized file folders that can be accessed once you log in to the program. 

The tax reports supplied by this Shopify tax app include a “Dirty Dozen” list which makes it easier than ever before for shop owners to stay compliant with their state and federal business laws. It also provides shop owners with up-to-date references and helpful links related to various sales and uses taxes as well as providing shop owners with real-time updates and notifications related to sales tax rate changes. 

This Shopify tax app is free for shop owners who make less than $100,000 annually in Shopify store revenue.

Key features:

• Easily organize Shopify transaction data into organized files that can be accessed from anywhere
• Provides shop owners with up-to-date references and helpful links related to various sales and use taxes
• Real-time updates and notifications related to changes in tax rates
• Free for shop owners who make less than $100,000 annually in Shopify

5. Avalara

The fourth Shopify tax app on our list is Avalara. Despite the fact that this Shopify tax app has a more expensive price tag ($299/month) than most of the Shopify apps we will be covering in this Shopify tax apps article.  

It also comes with more benefits including exclusive perks such as historical data access, automated audits and multi-user access for file sharing. If you’re looking for one of the best Shopify tax apps available today then this might just be the tax app your shop needs. 

The biggest downside to this tax app is that it can only be used in states where Avalara offers local compliance services, which leaves shop owners in 36 different states out of luck when it comes to using Avalara for their taxes.

Key features include:

• Shopify tax app for Shopify stores in 36 states
• Real-time Shopify tax calculation & filing
• Automated audits with email notifications
• Multi-user access with file-sharing capabilities
• Custom tax receipts

6. Zonos Duty and Tax Calculator

The fifth Shopify tax app on our list is called Zonos Duty and Tax Calculator. This Shopify tax app provides shop owners with access to over 200 different jurisdictions that are used for determining sales tax rates, along with several helpful tools including a complete audit log. 

As if that wasn’t enough, shop owners also have the option of receiving an email summarizing how Shopify taxes will be calculated and also have the ability to download a detailed spreadsheet at any time.

Key features of Zonos Duty and Tax Calculator include:

• Access to over 200 different jurisdictions for Shopify taxes
• Email summarizing Shopify tax calculations
• Download a detailed spreadsheet anytime

7. TQ – TurboTax For Shopify Retailers

The seventh Shopify tax app on our list is the Shopify version of TurboTax. This Shopify tax app provides shop owners with access to well over 300 different deductions, which includes everything from basic business expenses to travel and entertainment costs. 

As if that wasn’t enough for shop owners who are looking for an easy way out when it comes time for filing Shopify taxes, this Shopify tax app also allows shop owners to import their shop data directly from Shopify’s Order Report. 

The best part about using this Shopify tax app is that it offers complete support during normal business hours as well as access to telephone support after hours.

Key Features of TurboTax include:

• Over 300 Deductions Available
• Import From Shopify’s Order Report
• Telephone Support After Hours

Conclusion

As you can see Shopify tax apps offer shop owners a number of powerful capabilities. However, this list does not even begin to cover all of the tax apps available for sale today, which means shop owners have a lot of choices when it comes time for filing Shopify taxes. 

Keep in mind that tax apps are always changing and shop owners will want to shop around for the best Shopify tax app that works in their state before making a final purchase. There are lots of great Shopify tax apps available today, however, shop owners should shop around before deciding on one Shopify tax app over another.

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FAQs

How do Shopify tax apps work?

– Shopify tax apps help shop owners track and complete Shopify taxes for state and local jurisdiction. It helps shop owners file Shopify taxes easily with the help of an online application process.