Avalara is the best pick for sellers in several states who want filing handled for them — its small-business Select plans bundle managed returns and nexus monitoring, with prices starting at $69 per state per month. TaxJar, now owned by Stripe, is the best pick for very small, US-only online sellers with simple needs — it's self-serve, starts at $39 a month, and offers a 30-day free trial. Both replace the spreadsheet that tracks where you owe sales tax with software that calculates, monitors, and files. One honest caveat: the AI in this category is limited, so this comparison is mostly about filing coverage and price.
The two, in one line each
Avalara is a sales-tax platform for nexus monitoring, rate calculation, and managed return filing, with small-business plans from $69 per state a month.
TaxJar is a self-serve US sales-tax tool, owned by Stripe, that calculates rates, tracks nexus, and files returns for ecommerce sellers.
Where each one actually wins
Avalara wins on coverage and managed service. Its Select plans for businesses under $50 million in revenue are priced per state: Core Compliance is $79 per state per month ($799 per state per year) with a three-state minimum, while a Streamlined Sales Tax version is $69 per state per month with no minimum for sellers who qualify. Both include managed returns, covering preparation, filing, remittance, and state correspondence, and share a 200,000-transaction cap on total US volume. Avalara cites 1,400+ integrations, including Shopify, Amazon, Etsy, QuickBooks, and Stripe, and markets AI for item classification and exemption-certificate checks, though its Select pricing page doesn't say which AI features smaller plans include. Competitor reviews note that contracts auto-renew and that overages can trigger charges or an upgrade.
TaxJar wins on a low-cost, self-serve start. Starter is $39 a month on monthly billing with two AutoFile credits per year and $50 per return after that; Professional is $99 a month with four credits and $55 per return. Competitors report that TaxJar's prices rose in 2026, so check the current pricing page. TaxJar is still operating as a Stripe company and powers Stripe's US sales-tax filing. Its AI is limited to machine-learning product categorization, and it's US-only and self-serve, with no managed review before filing.
If you sell in many states and want filing and audit support handled, Avalara is the more direct fit. If you're a small US-only seller on Shopify, Amazon, or WooCommerce with just a few states, TaxJar's lower entry price and free trial are the better match.
Quick comparison
| Tool | Starting price | Core job | Best fit |
|---|---|---|---|
| Avalara | From $69/state/mo (Select, Streamlined Sales Tax) | Nexus monitoring + managed multi-state filing | Multi-state sellers wanting filing handled |
| TaxJar | $39/mo (Starter); 30-day free trial | Self-serve rates, nexus tracking, AutoFile | Small US-only online sellers |
*Prices as listed by each vendor in October 2026. The video above is a three-way comparison that also covers TaxCloud.*
Which one should you use?
Choose Avalara if you sell across many states and want managed filing and nexus monitoring. Choose TaxJar if you're a small US-only seller who wants the cheapest self-serve start and a free trial.
FAQ
Is TaxJar still around? Yes. TaxJar is a Stripe company and is still operating in 2026, powering the sales-tax filing inside Stripe's dashboard, though Stripe also sells a separate product called Stripe Tax.
Do these tools have a free plan? Neither has a free tier. TaxJar offers a 30-day free trial. Avalara offers a free nexus assessment and a demo instead of a trial.
Do they file my returns? Both can. Avalara's Select plans include managed returns billed per state. TaxJar charges per return after a small number of included AutoFile credits each year.
Does either one handle VAT or sales tax outside the US? TaxJar is US-only. Avalara's Select plans cover US sales and use tax only, so international VAT needs a different plan or product.
How much AI is really involved? Not much on small-business plans. TaxJar uses machine learning to suggest a tax category for each product, and Avalara markets AI for classification and exemption certificates, but the practical value for most small sellers is accurate calculation and timely filing, not AI.
Related guides
- AI Tools for Ecommerce in 2026
- Best AI Bookkeeping & Accounting Tool in 2026
- Best AI Tax Filing Assistant in 2026
- Explore Business tools
*Ratings and pricing reviewed monthly. Last updated October 2026.*
Bogdex · Founder & editor, woska
Bogdex builds and curates woska, testing AI tools against real workflows to judge which ones actually save time rather than which have the longest feature list.