Sales tax software that handles compliance for you
Xero's sales tax automation software, powered by Avalara, calculates the correct tax on every invoice across 13,000+ US jurisdictions. Set up your sales tax details in Xero, then let Xero calculate up-to-date sales tax rates based on location and item details.
Get started quickly with simple steps to set up your business in Xero
Quickly set up sales tax in Xero for all the states you're registered to collect sales tax in.
Automated sales tax calculations
Sales tax is automatically calculated for any state or jurisdiction.
Comprehensive sales tax reporting
Use automatically created reports to track upcoming payments due and previously filed reports.
“Until now, I haven’t taken on goods-based businesses across multiple states because the sales tax is just too hard. I can now expand my services to more complex goods-based businesses.”
What accountants and bookkeepers are saying about it…
Quick and easy to set up
Add your business details and enter your tax information. That's it! Avalara takes over, applying the correct rate to every invoice you send. Xero calculates up-to-date sales tax rates based on location and item details.
- Avalara automatically calculates accurate sales tax across over 13,000 US tax areas.
- Sales tax is handled automatically. Xero calculates up-to-date sales tax rates based on location and item details.
The right tax rate on every invoice
When you create an invoice in Xero, Avalara determines the correct sales tax based on your business address, your customer's location, and what item you're selling. Sales tax is handled automatically. Tax rates update continuously, so your invoices use up-to-date sales tax rates.
- Tax calculations are based on ship-from/ ship-to addresses, product type, state rules, and customer exemption status
- Avalara sales tax rates on invoicing across 13,000 US tax jurisdictions
- You can adjust the tax amount on unpaid credit notes. Auto tax covers the rest
Reports that make filing day simpler
Run the Sales Tax report to view tax amounts recorded. Use Xero reports to track your business’s finances and understand key performance metrics. Run the Sales Tax report to view tax amounts recorded and help prepare your sales tax return.
- Run multiple reports at once and customize your view - cutting down on double-checking and manual work.
- Run the Sales Tax report to view tax amounts recorded.
- Stay on top of what’s due with filing deadlines and previously filed reports.
Tax-exempt customers – sorted
Not every customer owes sales tax on every purchase. In Xero, Avalara calculates up-to-date sales tax rates based on location and item details. Sales tax is handled automatically. Xero calculates up-to-date sales tax rates based on location and item details.
- Sales tax is handled automatically. Avalara calculates up-to-date sales tax rates based on location and item details.
- Xero calculates up-to-date sales tax rates based on location and item details.
- Keep your records precise and helps you prepare for tax time, every time.
Plans to suit your business
All pricing plans cover the accounting essentials, with room to grow.
Xero reserves the right to change pricing at any time. All prices are listed in USD and do not include applicable taxes. Taxes will be calculated based on your billing address before you enter your payment information. Your monthly recurring total will be updated accordingly in the following steps. Xero subscriptions auto-renew monthly until they are cancelled. If you later decide to change to a less expensive plan you can do so 1 month after upgrading.
*This offer of 80% off Xero’s then-current regular price for the first 3 months is only available to new customers in the US purchasing their first organization on xero.com. Offer available using code DC8032614GL at checkout. Discount applies to base Early, Growing, Established plan subscriptions and does not apply to any additional charges for add‑ons, usage and payment fees, unless otherwise specified. After the first 3 months, Xero’s then-current regular price will apply and auto-renew monthly until cancelled. This offer cannot be used with, or exchanged for, any other offer. Xero can change or cancel this offer at any time.
†Invoice limits for the Early plan apply to both approving and sending invoices. Transactions initiated by app partners may automatically contribute to your invoice limit.
^Payment fees apply to the use of online invoice payments. See here for more information.
**Median payment times of invoices with a payment service included and sent via SMS by customers using Xero in US from 9/1/2024 to 3/31/2025 (compared to invoices sent by email and without payment service included).
a. ††Payment fees apply to the use of online bill payments. The payment fees are in addition to your Xero monthly subscription amount, and are subject to change. All fees are in US dollars and exclude applicable taxes unless otherwise specified. See here for more information.
b. ^Payment fees apply to the use of online invoice payments. See here for more information.
Xero reserves the right to change pricing at any time. All prices are listed in USD and do not include applicable taxes. Taxes will be calculated based on your billing address before you enter your payment information. Your monthly recurring total will be updated accordingly in the following steps. Xero subscriptions auto-renew monthly until they are cancelled. If you later decide to change to a less expensive plan you can do so 1 month after upgrading.
*This offer of 80% off Xero’s then-current regular price for the first 3 months is only available to new customers in the US purchasing their first organization on xero.com. Offer available using code DC8032614GL at checkout. Discount applies to base Early, Growing, Established plan subscriptions and does not apply to any additional charges for add‑ons, usage and payment fees, unless otherwise specified. After the first 3 months, Xero’s then-current regular price will apply and auto-renew monthly until cancelled. This offer cannot be used with, or exchanged for, any other offer. Xero can change or cancel this offer at any time.
†Invoice limits for the Early plan apply to both approving and sending invoices. Transactions initiated by app partners may automatically contribute to your invoice limit.
^Payment fees apply to the use of online invoice payments. See here for more information.
**Median payment times of invoices with a payment service included and sent via SMS by customers using Xero in US from 9/1/2024 to 3/31/2025 (compared to invoices sent by email and without payment service included).
a. ††Payment fees apply to the use of online bill payments. The payment fees are in addition to your Xero monthly subscription amount, and are subject to change. All fees are in US dollars and exclude applicable taxes unless otherwise specified. See here for more information.
b. ^Payment fees apply to the use of online invoice payments. See here for more information.
Selling in multiple states? What to know
Sales tax is handled automatically. Xero calculates up-to-date sales tax rates based on location and item details. These economic nexus rules vary by state. As your business grows, it’s quick and easy to set up your business correctly in Xero.
- Automatically calculate accurate sales tax across many jurisdictions, making tax time a little easier.
- Stick to the selling while Avalara handles the rate and rule complexity for every state you're registered in
- Easily share Xero reporting data with your advisor to help identify new filing obligations
Connect your online store to Xero
Selling online? Connect your ecommerce platform to Xero through the Xero App Store. Avalara calculates up-to-date sales tax rates based on location and item details. Automatically calculate accurate sales tax across many jurisdictions, making tax time a little easier.
- Connect to ecommerce platforms through the Xero App Store. Xero calculates up-to-date sales tax rates based on location and item details.
- Online and in-person sales in one system. Avalara helps calculate up-to-date sales tax rates based on location and item details.
- Bring your business data into Xero and keep your records in one place.
FAQs about sales tax automation software
Sales tax software calculates, tracks, and reports your sales tax obligations so you don't have to do it by hand. Instead of looking up rates everywhere you sell, the software applies the correct tax automatically.
It works by calculating up-to-date sales tax rates based on location and item details. Automatically calculate accurate sales tax across many jurisdictions, making tax time a little easier.
In Xero, automated sales tax is powered by Avalara, which covers more than 13,000 jurisdictions across all US states. Sales tax is handled automatically. Xero calculates up-to-date sales tax rates based on location and item details.
Sales tax software calculates, tracks, and reports your sales tax obligations so you don't have to do it by hand. Instead of looking up rates everywhere you sell, the software applies the correct tax automatically.
It works by calculating up-to-date sales tax rates based on location and item details. Automatically calculate accurate sales tax across many jurisdictions, making tax time a little easier.
In Xero, automated sales tax is powered by Avalara, which covers more than 13,000 jurisdictions across all US states. Sales tax is handled automatically. Xero calculates up-to-date sales tax rates based on location and item details.
Automated sales tax helps calculate accurate sales tax across many jurisdictions. Automatically calculate accurate sales tax across many jurisdictions with Avalara.
Because it’s part of Xero, your accounting and sales tax sit in one platform. Your accounting, invoicing, and sales tax compliance all sit in one platform.
Xero offers a free trial so you can test automated sales tax before committing.
Visit the pricing page for the latest plan and add-on details.
Automated sales tax helps calculate accurate sales tax across many jurisdictions. Automatically calculate accurate sales tax across many jurisdictions with Avalara.
Because it’s part of Xero, your accounting and sales tax sit in one platform. Your accounting, invoicing, and sales tax compliance all sit in one platform.
Xero offers a free trial so you can test automated sales tax before committing.
Visit the pricing page for the latest plan and add-on details.
Xero helps you prepare for tax time with reports, and in the US it automatically calculates accurate sales tax across many jurisdictions. Xero calculates up-to-date sales tax rates based on location and item details, helping reduce manual work and giving you a clearer financial picture.
You can view due dates and track what needs to be paid so you stay organized. You can also check the status of filed reports.
Xero helps you prepare for tax time with reports, and in the US it automatically calculates accurate sales tax across many jurisdictions. Xero calculates up-to-date sales tax rates based on location and item details, helping reduce manual work and giving you a clearer financial picture.
You can view due dates and track what needs to be paid so you stay organized. You can also check the status of filed reports.
Xero calculates up-to-date sales tax rates based on location and item details. Sales tax is handled automatically. Xero calculates up-to-date sales tax rates based on location and item details. Sales tax is handled automatically.
You can mark customers as tax-exempt, and sales tax is calculated based on what you’re selling and where you’re selling.
Xero calculates up-to-date sales tax rates based on location and item details. Sales tax is handled automatically. Xero calculates up-to-date sales tax rates based on location and item details. Sales tax is handled automatically.
You can mark customers as tax-exempt, and sales tax is calculated based on what you’re selling and where you’re selling.
Xero calculates US sales tax across 13,000 tax jurisdictions using Avalara. This includes 13,000 tax jurisdictions.
Avalara supports sales tax calculations across 13,000 tax jurisdictions in the US. Rates and taxability rules update continuously as states make changes.
Xero calculates US sales tax across 13,000 tax jurisdictions using Avalara. This includes 13,000 tax jurisdictions.
Avalara supports sales tax calculations across 13,000 tax jurisdictions in the US. Rates and taxability rules update continuously as states make changes.
It’s quick and easy to set up your business correctly in Xero. You just enter your business details and add your tax information.
After that, sales tax is handled automatically. Sales tax rates are kept up to date automatically. After that, sales tax is handled automatically. Tax rates and rules stay current without any ongoing maintenance from you.
It’s quick and easy to set up your business correctly in Xero. You just enter your business details and add your tax information.
After that, sales tax is handled automatically. Sales tax rates are kept up to date automatically. After that, sales tax is handled automatically. Tax rates and rules stay current without any ongoing maintenance from you.
It depends on your needs. Choose a Xero plan based on your business’s current size, projected growth, and day-to-day needs. But for most small businesses, Xero’s integrated approach – sales taxes built into the accounting software – removes friction and saves time.
Xero’s automated sales tax is powered by Avalara, helping you calculate accurate sales tax across 13,000 tax jurisdictions.
In Xero, tax calculations happen directly on your invoices. Your sales data, invoicing, bank reconciliation, and tax reporting are all connected in one platform with one login. Your sales data, invoicing, and tax reporting are all connected in Xero.
It depends on your needs. Choose a Xero plan based on your business’s current size, projected growth, and day-to-day needs. But for most small businesses, Xero’s integrated approach – sales taxes built into the accounting software – removes friction and saves time.
Xero’s automated sales tax is powered by Avalara, helping you calculate accurate sales tax across 13,000 tax jurisdictions.
In Xero, tax calculations happen directly on your invoices. Your sales data, invoicing, bank reconciliation, and tax reporting are all connected in one platform with one login. Your sales data, invoicing, and tax reporting are all connected in Xero.
Yes – Xero connects with popular ecommerce platforms through the Xero App Store. Connect the tools you already use with apps in the Xero App Store. In Xero, Avalara helps calculate up-to-date sales tax rates based on location and item details.
Keeping your financial transactions in Xero gives you a clear overview of your finances and helps you prepare your tax return accurately.
Yes – Xero connects with popular ecommerce platforms through the Xero App Store. Connect the tools you already use with apps in the Xero App Store. In Xero, Avalara helps calculate up-to-date sales tax rates based on location and item details.
Keeping your financial transactions in Xero gives you a clear overview of your finances and helps you prepare your tax return accurately.
It definitely helps. Sales tax software can reduce manual work and help you stay compliant by automatically calculating accurate sales tax across many jurisdictions.
Sales tax software can save you significant time and reduce your compliance risk as your business grows.
And if you sell online, sales tax software can help you calculate accurate sales tax across many jurisdictions, making tax time a little easier.
Sales tax software takes the complexity off your plate so you can focus on running your business.
It definitely helps. Sales tax software can reduce manual work and help you stay compliant by automatically calculating accurate sales tax across many jurisdictions.
Sales tax software can save you significant time and reduce your compliance risk as your business grows.
And if you sell online, sales tax software can help you calculate accurate sales tax across many jurisdictions, making tax time a little easier.
Sales tax software takes the complexity off your plate so you can focus on running your business.
It should. For example, Xero's sales tax feature uses Avalara's engine to calculate up-to-date sales tax rates based on location and item details. This means sales tax is calculated accurately across many jurisdictions.
Sales tax is handled automatically. Xero calculates up-to-date sales tax rates based on location and item details. Xero helps you keep a well-organized record of your financial transactions, so you have what you need to prepare your tax return accurately.
It should. For example, Xero's sales tax feature uses Avalara's engine to calculate up-to-date sales tax rates based on location and item details. This means sales tax is calculated accurately across many jurisdictions.
Sales tax is handled automatically. Xero calculates up-to-date sales tax rates based on location and item details. Xero helps you keep a well-organized record of your financial transactions, so you have what you need to prepare your tax return accurately.
Features that work with sales tax automation software
Sales tax is handled automatically in Xero, helping reduce manual work and giving you a clearer financial picture.
Online invoicing
Create and send invoices with sales tax calculated at billing. Your customers see accurate totals.
Accept payments
Give customers easy ways to pay directly from invoices.
See how to accept payments and close the loop on invoiced sales
Inventory management
Track stock levels and assign tax codes to your products. Xero calculates up-to-date sales tax rates.
See how inventory management helps your sales tax compliance
Accounting software for your small business
Run your business accounting online with Xero. Easy-to-use accounting software, designed for your small business.
- Everything in one place
- Connect to your bank
- Collaborate in real time
- Customize to suit your needs
Get one month free
Purchase any Xero plan, and we will give you the first month free.
Are you an accountant or bookkeeper?
Automated sales tax is just one way that Xero can help you to support your clients and expand your services. Learn more about how Xero can help your practice grow.
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