What Stripe Tax does
- Calculates sales tax automatically based on customer ship-to address
- Adds tax to checkout total
- Collects tax with the transaction
- Tracks nexus thresholds across US states
- Generates reports for filing
What Stripe Tax does NOT do
- Register your LLC for sales tax in each state (you do this)
- File sales tax returns (you or TaxJar/Avalara file)
- Remit collected tax to states (you remit)
- Handle non-Stripe transactions (you need a separate solution for Amazon, manual sales)
Stripe Tax vs TaxJar vs Avalara
- Stripe Tax: 0.5-1.5% + monthly. Calculation only. Best for Stripe-only sellers.
- TaxJar: ~$19/month and up. Collection + filing + remittance. Best for multi-channel sellers (Stripe + Amazon).
- Avalara: Custom pricing. Enterprise-level features. Best for complex multi-state operations.