Choosing the right order tier for your business

Our monthly and annual subscription pricing is based on your total monthly order volume and how you are integrating with TaxJar. 

To avoid flex fees, we recommend that you choose the plan that best matches your usual monthly volume.

If you are using an integration(s) that only requires data import

• These are integrations such as Amazon, Walmart, or Shopify. These integrations provide sales tax calculations, so only order imports are required. To see if your integration requires data import, check out our list here. 
• Additionally, any Starter customers can use the logic below. Access to the TaxJar API is limited to Professional customers. 
• Determine your average monthly order level and choose the subscription plan that most closely matches that number.
  • If you go over your order limit or have seasonal spikes in sales, we'll automatically bill you for the plan that matches your order level during those months and the next month, you'll start back on the original plan you selected

If you are using an integration that requires the TaxJar API for real-time tax calculations

• These are integrations such as Magento, WooCommerce, or a custom integration. 
• We anticipate that any official TaxJar API integration will make approximately 2-3 API calculation requests per order, because we built the TaxJar API to only make API requests when absolutely necessary. For custom integrations, these numbers may vary and will likely be higher (could be as high as 6 API calculations per order) if caching or strict guidelines are not put in place. We outline how to avoid unnecessary API calls in our developer documentation. 
  • Why do you estimate 2-3 API calculations per order?
    • Not every order is straightforward and might require more than one sales tax calculation. Here’s an example: a customer puts a few items in their cart, proceeds to checkout, and goes back to remove or add an item to their cart. Each time their order changes, TaxJar has to recalculate sales tax for that order. 
• We have a simple formula to calculate the correct order tier for your business. Determine your average monthly order volume. Then, multiply that number by 3, to account for the number of API calculations required for each order. Then, divide that number by 10. 
• We divide by 10 because any API tax calculations or rate lookups that we provide are only billed as 1/10th of an order towards your monthly order total. We do this to keep your TaxJar cost low because we know on average it takes less than 10 sales tax calculations per order.  
  • For example If you make 5,000 calls to our API in the month, this will only count towards your monthly order limit as 500 orders.
• Once you have that number, add it to your average monthly order volume to determine the correct order tier for your business.

Here’s an example for a customer using Shopify:

• Only need to consider average monthly order volume since Shopify is an integration that only requires data import
• Average monthly order volume: 30,000
• Recommended order tier: 50K. This is the order tier that aligns closest to their average monthly order amount.

Here’s an example for a customer using WooCommerce: 

• Must consider average monthly order volume as well as average tax calculations
• Average monthly order volume: 2,600
• 2,600 (average monthly order volume) x 3 (API requests) = 7,800
• 7,800/10 (TaxJar bills 1/10th ) = 780 (monthly tax calculation requirements)
• 2,600 (average monthly order volume)+780 (monthly tax calculation requirements) = 3,380 (average monthly order amount)
• Recommended order tier: 5K. This is the order tier that aligns closest to their average monthly order amount.

Here’s an example of a customer using Magento and Amazon: 

• Average monthly order volume for Amazon: 20,000
• Average monthly order volume for Magento: 20,000
• 20,000 (average monthly order volume for Magento) x 3 (API requests) = 60,000
• 60,000/10 (TaxJar bills 1/10th) = 6,000 (monthly tax calculation requirements for Magento)
• 20,000 (average monthly order volume) + 6,000 (monthly tax calculation requirements for Magento) = 26,000 (average monthly order amount for Magento)
• 26,000 + 20,000 (Amazon average monthly order volume) = 46,000 (total average monthly order amount) 
• Recommended order tier: 50K This is the order tier that aligns closest to their average monthly order amount.

What happens If I exceed my plan's order limit?

If you go over your allotted order limit during a single month, we will automatically charge you the difference between your current plan and the plan that matches your usage level that month. 

• The next month you'll start back on the original plan that you subscribed to, and the process will repeat itself again. 
• You will see a flex fee each time you exceed your plan's monthly order limit.

If you are on an annual plan and incur a flex fee, you will be billed for the difference between the monthly tier amounts and invoice will be generated for the month you incurred the overage.