Calculate and report sales tax more easily with auto sales tax

With auto sales tax, powered by Avalara, sales tax is automatically calculated on invoices, and detailed reports help prepare returns. Save time now and help avoid a compliance headache later.

Person holding laptop while calculating sales tax through Xero.

Fast, self-guided setup

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.

View detailed sales tax reports

Make filing easier with detailed, jurisdiction-based sales tax 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…

Fast, self-guided setup

Setting up auto sales tax is simple. Enter your contact information, business location and tax details to get set up in all states you’re currently registered to collect sales tax in.

  • Included
    Avalara covers all US states and more than 13,000 tax jurisdictions
  • Included
    Manage sales tax attributes for your products and services
An on-screen message confirms that sales tax has been set up in a specific state.

Automated sales tax calculations

Get automated sales tax calculations on invoices without the guesswork when you use Xero’s new invoicing option.

  • Included
    Taxes are automatically calculated based on where you’re selling from, where you’re selling to, whether an item is taxable according to state rules, and whether your customer is exempt from sales tax
  • Included
    Avalara automatically updates with the latest rates and rules about what’s taxable
  • Included
    Currently, auto sales tax on credit notes, repeating invoices, find and recode, and quotes is not yet available
Sales tax software in Xero showing automatic calculations for an invoice.

View detailed sales tax reports

View enhanced, jurisdiction-based sales tax reports to make filing easier

  • Included
    Get a summary, breakdown or transaction view of sales tax totals by jurisdiction
  • Included
    Distinguish between taxable and non-taxable sales transactions
  • Included
    E-filing options are available through Avalara
A detailed sales tax report displays in Xero showing sales tax by state or jurisdiction.

New to Xero? Try it free for 30 days

Try all of Xero’s features including invoicing and auto sales tax, free for 30 days.

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Already using Xero? Try auto sales tax now

Try auto sales tax if you’re registered for sales tax and invoice for taxable goods and services: select “Sales tax” in the Accounting menu.

An image of a laptop open with someone doing invoicing