TaxJar vs Avalara: Which Sales Tax Automation Platform is Best for Accounting Firms

Sales tax compliance has become increasingly complex as businesses expand across states, sell online, and face constantly changing regulations. For accounting firms, manually tracking tax rates, filing deadlines, and exemption certificates across thousands of jurisdictions is no longer a practical approach. That’s why automation platforms like TaxJar and Avalara have become essential tools for businesses. Both promise accuracy and efficiency, but they take different approaches. This blog compares TaxJar and Avalara to help accounting professionals decide which platform best supports their clients and firm's workflows.

What core features do TaxJar and Avalara both offer?

Both platforms automate tax calculations, support filing & remittance, help with nexus tracking (i.e., notifying when a client crosses a state threshold that triggers tax obligations), and provide some form of exemption certificate management. TaxJar offers a clean dashboard and real-time tax rate fetching across U.S. jurisdictions. Avalara provides similar functionality, but with more options for custom rules, broader jurisdiction coverage (including international taxes), and a larger integration ecosystem.

Where does TaxJar shine for firms?

What makes TaxJar appealing to many accounting firms is its simplicity, transparent pricing for many of its plans, and a user-friendly interface. It tends to work well for clients with medium complexity, multiple states, but not for those with ultra-high volume or international needs. Its tools, such as Nexus alerts, AutoFile (automatic filing) for specific states, and integration with popular platforms, make onboarding clients faster. Firms often find that TaxJar significantly reduces manual work while requiring less setup overhead.

Where is Avalara more suited or powerful?

Avalara is generally stronger in handling more complex tax scenarios, including clients that sell in multiple jurisdictions (including international), those with numerous product tax codes or exemptions, or those who need specialized registrations/licenses. Avalara’s API and rules engine tend to be more robust; it offers more enterprise-level integrations and more customizable compliance workflows. Firms serving larger or rapidly scaling clients often lean toward Avalara because it can grow with their evolving needs.

What about pricing, transparency, and cost predictability?

TaxJar tends to offer more transparent and more predictable pricing for many users. Its starter tiers are well-documented, and you can estimate the cost by volume/orders/states. Avalara’s pricing is more customized and can become expensive as you layer on additional services (returns, certificate management, special filings). Some reviews note that for smaller clients or those just starting with multi-state requirements, Avalara’s costs and complexity may exceed what the client needs.

How steep is the learning curve and setup for each platform?

TaxJar usually has a gentler learning curve. Firms report that TaxJar’s setup (configuring sales channels, setting up products, enabling AutoFile) can be done without heavy consulting. Avalara, due to its breadth of features, jurisdictional coverage, and custom configuration options, often requires more time to properly set up, especially for clients with multiple sales channels, numerous exempt items, or international exposure. Firms may need to invest more internal or external time to configure Avalara correctly.

Which platform scales better for high-volume or complex client portfolios?

For clients growing significantly in complexity, such as higher-order volumes, multiple marketplaces, international sales, or numerous exempt product categories, Avalara tends to offer more long-term scalability. Its enterprise features, broader integrations, and depth of compliance tools give it an edge for clients who will push the limits. TaxJar, while excellent, tends to become less optimal when complexity or volume rises beyond certain thresholds.

What is the final takeaway for accounting firms comparing TaxJar and Avalara?

If your clients are generally small to mid-sized with sales in a handful of states and modest order volumes, TaxJar may be the more efficient and cost-effective choice. If your firm supports clients with broader or more complex tax obligations, international exposure, or many exemption/product-classification needs, Avalara is worth the extra investment.

Need help picking the right solution for your clients?

Choosing between TaxJar and Avalara depends on your firm’s client mix, compliance risk tolerance, and growth roadmap. If you want expert advice on choosing, implementing, or scaling sales tax compliance tools, the Genwise team can help. Contact us to receive a tailored assessment of what best suits your practice.