How Much Does Avalara Cost?

Figuring out what Avalara will cost your business is a common challenge, largely because they don’t publish a simple price list. Their pricing is tailored to each business’s specific needs, which means you have to go through their sales process to get a number. This article breaks down the key factors that determine your final Avalara subscription fee. We’ll cover their pricing model, provide estimated cost ranges for different business sizes, and outline the exact questions you should ask to get a clear and complete quote.

Why Avalara Doesn’t Publish Standard Pricing

Like many enterprise software providers, Avalara uses a quote-based pricing model. This isn't meant to be secretive; rather, it reflects the complex and custom nature of sales tax compliance. A solution that works for a small online Shopify store in a single state is fundamentally different from what a multinational manufacturer using a complex ERP system needs. Trying to fit both into a predefined “plan” wouldn't work.

Here are the primary reasons behind this customized approach:

• Tailored Fit: Your final cost is a direct reflection of the services you actually use. Pricing is based on a combination of transaction volume, the number of states you do business in, the specific software integrations you need, and which Avalara modules (like returns filing or exemption certificate management) you require.
• Complexity Varies: Sales tax is not a uniform problem. Your industry, product or service taxability, and sales channels dramatically change your compliance needs. For instance, selling digital goods internationally has different requirements than selling B2B hardware across the United States. A quote-based system allows Avalara to account for this nuance.
• Value-Based Model: The price is often aligned with the value and risk mitigation Avalara provides. For a large company with nexus in 40 states, the cost of an audit or failing to remit tax correctly can be catastrophic. The subscription cost, while significant, is a fraction of that potential liability. This value proposition is different for every company, influencing the final price.

The Core Factors That Determine Your Avalara Cost

Your Avalara quote isn't a single line item. It's a bundle of services and features, each contributing to the total price. Understanding these components is the key to decoding your proposal and ensuring it aligns with your company’s needs.

1. Transaction Volume

This is the biggest driver of your base subscription cost. It's crucial to understand that Avalara's definition of a "transaction" may be broader than just a completed sale. It often includes any API call to their tax calculation engine, which could mean:

• Sales orders
• Invoices
• Credit memos or returns
• Committed transactions in your ERP
• Canceled or voided invoices

During the sales process, be sure to clarify exactly what document types count toward your annual transaction limit. Avalara's pricing is tiered based on this volume. For example, a base package might include up to 1,000 transactions per year, with the next tier covering up to 5,000, and so on. The cost per transaction decreases as your volume increases, but your total annual fee goes up with each tier.

2. Number of Nexus Jurisdictions

Where you have a legal obligation to collect and remit sales tax (nexus) is a major pricing factor, especially for the returns filing component of their service. A business with nexus in only one or two states will pay far less than a national seller with nexus in 45 states.

This includes both physical nexus (offices, employees, inventory) and economic nexus, which is triggered by exceeding certain sales revenue or transaction count thresholds in a state. Part of Avalara's service is helping you track these thresholds, but the more jurisdictions they have to monitor and file in, the higher your subscription will be.

3. Software Integrations (Connectors)

Avalara works by connecting directly to the software you already use to run your business. These connections, or "connectors," are often priced individually. Each maintained integration adds complexity and cost.

Common integrations include:

• ERP Systems: NetSuite, SAP, Oracle, Microsoft Dynamics
• Accounting Software: QuickBooks, Xero, Sage
• E-commerce Platforms: Shopify, BigCommerce, Magento (Adobe Commerce), WooCommerce
• Marketplaces: Amazon, Walmart, eBay

If you sell through multiple channels—like a Shopify storefront and Amazon FBA—you will likely need at least two connectors, which will increase your annual fee. Maintaining and updating these connectors to keep pace with platform changes requires significant effort, which is reflected in the price.

4. Specific Avalara Products and Modules

Avalara is not a single product but a suite of compliance tools. Your final quote will depend on which modules you bundle together.

• AvaTax Sales & Use Tax: This is the core tax calculation engine. It's the foundation of nearly every subscription and its cost is largely driven by transaction volume.
• Avalara Returns: This add-on automates the preparation and filing of your sales tax returns. The cost is typically priced on a per-return, per-filing basis. If you need to file monthly in 20 states, your cost will be much higher than if you file quarterly in five states.
• Avalara Exemption Certificate Management (CertCapture): If you sell to tax-exempt entities (like wholesalers, governments, or non-profits), this module is indispensable. It automates the collection, validation, and storage of exemption certificates. Its price is usually based on the number of certificates you need to manage.
• Avalara Cross-Border: For businesses that sell internationally, this module calculates customs duties, import tariffs, and VAT. It’s a specialized, and therefore more expensive, service.

Estimated Avalara Cost Ranges

Disclaimer: The following figures are estimates based on user-reported data and industry analysis. The only way to know your exact cost is to get a custom quote directly from Avalara. These ranges are intended to give you a general idea of what to expect.

For Small Businesses

• Profile: An e-commerce business using a platform like Shopify or BigCommerce, with nexus in 1-3 states and fewer than 5,000 transactions per year.
• Typical Package: AvaTax core calculation engine, one e-commerce connector, and Avalara Returns for a few jurisdictions.
• Estimated Annual Cost: $2,000 - $7,000

For Mid-Sized Businesses

• Profile: A multi-channel seller (e.g., website and Amazon) or a B2B company using an ERP like NetSuite, with nexus in 10-25 states and transaction volume in the tens of thousands annually.
• Typical Package: AvaTax, Avalara Returns, CertCapture for managing exempt sales, and connectors for both their ERP and e-commerce platform.
• Estimated Annual Cost: $10,000 - $25,000+

For Enterprise Companies

• Profile: A large, multinational business with complex operations, high transaction volume (hundreds of thousands or millions), multiple business units using different systems, and international sales.
• Typical Package: The full suite of Avalara products, including AvaTax, Returns for all applicable states, CertCapture, Cross-Border solutions, and custom integrations.
• Estimated Annual Cost: $50,000 - $150,000+

Key Questions to Ask Your Avalara Sales Rep

To avoid surprises and ensure you're getting the right package, go into your sales conversation prepared. Your goal is to get a complete picture of the total cost of ownership, not just the base subscription fee.

Here are the questions you need to ask:

1. What exactly counts as a "transaction"? Ask for a list of all document types (invoices, credit memos, voided sales, etc.) that will decrement your annual transaction limit.
2. What are the overage fees? If you exceed your transaction limit mid-year, how much will you pay for additional transactions? Is it a flat fee or a per-transaction cost?
3. Are implementation fees included? Is there a one-time onboarding fee? What does it cover (e.g., training, integration setup)?
4. How much does each software connector cost? Is it a one-time fee or an annual subscription?
5. What is the detailed pricing for Avalara Returns? Is it a flat fee per state, or does it vary by filing frequency (monthly vs. quarterly vs. annually)?
6. What is the standard annual price increase upon renewal? Can a price-increase cap be written into our contract?
7. What level of support is included? Does our subscription include phone support and a dedicated success manager, or is that an additional cost?

By asking these specific questions, you turn a vague sales conversation into a clear-cut assessment of your company's full investment in sales tax automation.

Final Thoughts

Determining your Avalara cost comes down to a detailed assessment of your transaction volume, nexus footprint, required integrations, and the specific compliance modules you need. While you won't find a pricing page on their website, you can use the factors discussed here to prepare for your conversation with their team and arrive at a package that truly fits your business.

While automation tools like Avalara handle the mechanics of calculation and filing, the strategic decisions around tax remain. Answering tough questions about an emerging nexus issue, the taxability of a new product, or the rules in a specific state still requires deep expertise. We built Feather AI to give tax professionals instant access to citation-backed answers from authoritative IRS and state tax codes, helping you advise clients or guide your business with confidence.