How does the TaxJar API work?

The TaxJar API can be used to calculate sales tax on your orders as well as import your sales tax data into your TaxJar account so we can compile detailed Sales Tax Reports with jurisdiction breakdowns.

Our API's '/v2/taxes' endpoint takes aspects like the following information as input: 

  • Location the order is shipped from
  • Location the order is shipped to
  • Order amount
  • Shipping amount
  • Product, customer and marketplace exemptions* (if applicable, please see below)
  • And more! Check out more parameters here.

Our API then returns the amount of sales tax that should be collected. 

  • The TaxJar API determines the rate based on state, city, zip-code (as well as +4 information if it's included), and street address.
  • The API takes into account whether or not the sourcing for this transaction in question is origin-based or destination-based, and whether or not shipping is taxable.
  • To ensure that we are providing the most accurate sales tax calculations, our API offers address validation as an added feature to make collecting sales tax for the correct address easier than ever, and we have more information on this feature here.

The TaxJar API supports:

  • Product Taxability: Certain products, including dietary supplements, clothes, and food are taxed at a reduced rate in some states and are sometimes even tax-exempt. Our API supports special sales tax circumstances for the products you sell. (See supported categories here.)
  • Customer Exemptions: Designate transactions as exempt due to wholesale or otherwise, entity exempt!
  • Marketplace Facilitator Exemptions: You can designate transactions sold via a marketplace facilitator as exempt via the API.

To get started, here's how to access the TaxJar API