Scaling an Amazon FBA business requires you to wear many hats, but acting as a tax professional should not be one of them.

Most sellers just want to launch profitable products and let the logistics run themselves without worrying about government audits. But the reality of FBA is that your inventory spreads across the country, which instantly triggers tax laws in states you have never visited. This leaves many business owners stuck with manual checks of warehouse reports or paying for expensive enterprise software they do not need.

We’ve compiled this list of the best Amazon seller tax software to help you automate your compliance and get back to growing your store.

How to choose the best Amazon seller tax software

Selecting the right tax software is critical because Amazon sellers face unique challenges that other businesses do not. You need a tool that understands how Fulfillment by Amazon works and can keep up with your inventory movements. 

Here are the key factors you should consider before subscribing:

1. Real-time nexus tracking

This is the most important feature for any Amazon seller. Amazon moves your inventory to different warehouses across the country without asking you first. This creates a physical presence or economic nexus in states you might not expect. You need software that monitors these movements daily and alerts you the moment you are legally required to register in a new state.

2. Automated filing capability

You must decide whether you want software that only tells you what you owe, or one that actually pays the state for you. Tools like Kintsugi offer autofile services that submit your returns and payments automatically. This costs more, but it eliminates the risk of human error and missing strict state deadlines.

3. Transaction volume pricing

Pay close attention to how the software charges you. Some tools charge a fee based on the number of transactions you process each month. If you sell low-priced items at high volume, this model can become very expensive very quickly. Look for a solution that offers a flat rate or tier-based pricing that matches your business margins.

4. Multichannel integration

Most successful Amazon sellers eventually expand to other platforms like Shopify, eBay, or Walmart. Your tax software needs to pull data from all these sources into one single dashboard. If it only connects to Amazon, you will be left doing manual math to combine your sales data, which defeats the purpose of automation.

Quick overview of the top Amazon seller tax software

The 8 best Amazon seller tax software

1. Kintsugi 

Source 

Kintsugi is built to handle the heavy lifting of sales tax for high-volume Amazon sellers. It connects directly to your Amazon Seller Central account to track exactly where your inventory travels across the fulfillment network. 

The system uses AI to categorize your products, so you never apply the wrong tax rate to items with special rules, such as groceries or apparel. 

Unlike many software tools that rely solely on bots, Kintsugi pairs its technology with a dedicated support team. This ensures you have actual humans to help you resolve state notices or registration questions quickly.

Why Kintsugi is the best choice for Amazon sellers

• AI-driven product categorization: Amazon sellers often have huge catalogs with different tax rules. Kintsugi uses AI to scan your inventory and automatically assign the correct tax code to every SKU so you never pay tax on exempt items.

• Real-time nexus monitoring: FBA inventory moves constantly and creates new tax liabilities overnight. Kintsugi tracks your sales and physical presence 24/7 to alert you the exact moment you cross a threshold in a new state.

• Responsive expert support: Tax issues are stressful and waiting days for a generic email reply is not an option. Kintsugi offers fast and reliable customer service from experts who understand e-commerce tax laws and can help you fix issues immediately.

• Audit ready reconciliation: Amazon settlement reports are notoriously messy but Kintsugi reconciles them down to the cent. It ensures that the tax Amazon collected from your customers matches exactly what you report to the state to prevent audit flags.

Customer Story: How Obvi saved tens of thousands in penalties

Ravi Melwani, VP of Finance & Operations at Obvi, previously used a popular competitor to manage its sales tax. However, the manual processes at the previous agency led to a lack of clarity regarding filing timelines and nexus obligations.

"We saved hours and tens of thousands from penalties and interest since signing up with Kintsugi. The best part is I don't have to do the state tax, and you're awesome with response time."

— Ravi Melwani, VP of Finance & Operations at Obvi

After switching to Kintsugi, the difference was immediate. Kintsugi’s system not only automated their compliance but actually flagged errors from their previous provider. By correcting these past mistakes, Obvi was able to win back significant funds.

Read the full case study here

2. TaxJar

Source 

TaxJar is widely considered the standard for Amazon sales tax automation because it is incredibly easy to use. It connects directly to your Amazon Seller Central account and pulls in your transaction data every day. 

Its most popular feature is AutoFile, which automatically submits your tax forms and payments to the state for you. This ensures you never miss a deadline or pay a late fee. The dashboard uses a simple color-coded map to show you where you are collecting tax and where you might need to register next.

Choose if 

• You want a completely hands-off solution that files your returns for you automatically.

• You need to track your economic nexus status across all 50 states in real time without doing manual math.

• You sell on multiple channels like Shopify and eBay, and want all your tax data in one single dashboard.

Avoid if 

• You sell highly complex products, such as medical devices, with very specific tax rules across different cities.

• You need strong support for international VAT, as its main focus is strictly on the United States sales tax.

• You are a very low-volume seller who cannot justify the monthly subscription cost and per return filing fees.

3. Avalara

Source 

Avalara is a robust and powerful tool designed for large businesses and enterprise sellers. It is renowned for its ability to handle complex tax matters worldwide. If you sell products that have different tax rates in different cities or countries, Avalara can calculate them instantly at checkout. 

It integrates with virtually every type of business software or ERP system available. It is often the top choice for sellers who have outgrown simpler tools and need a solution that can handle millions of transactions without breaking.

Choose if 

• You sell globally and need a single system to handle VAT, GST, and US sales tax simultaneously.

• You sell items with tricky tax rules, like food, clothing, or supplements, where taxability changes by zip code.

• You are an enterprise seller who needs a dedicated account manager and highly customized reporting.

Avoid if

• You are a small business with a limited budget, as the setup fees and annual contracts can be expensive.

• You find complex software interfaces difficult to use and prefer something that works out of the box.

• You only sell in a few states and do not need the heavy-duty features designed for multinational corporations.

4. Link My Books

Source 

Link My Books is a user-friendly alternative for sellers who find other accounting connectors too expensive or difficult. It is especially strong for sellers who operate in the UK and Europe. It uses a clear wizard to help you categorize your products with the correct tax codes. 

This ensures you do not pay too much tax on sales that should be zero-rated or tax-exempt. It creates clean invoices for every payout and sends them to your accounting platform so you can see your exact profit margins.

Choose if

• You sell on Amazon marketplaces in the UK or Europe and need to handle VAT correctly.

• You want a clear view of your profit and loss on each product you sell without complex spreadsheets.

• You need a cost-effective way to sync your Amazon data into Xero or QuickBooks Online.

Avoid if

• You need a tool that handles the actual filing and payment of sales tax returns for you.

• You are not using one of the major cloud accounting platforms, such as Xero or QuickBooks.

• You strictly sell in the US and do not need the advanced VAT features it offers.

5. A2X

Source 

A2X is essential for sellers who need accurate accounting for tax reporting. Amazon deposits money into your bank account every two weeks as a single lump sum. This makes it impossible to know how much of that money is sales tax, shipping income, or reimbursement fees. 

A2X solves this by automatically splitting that deposit into clean lines. It sends a tidy journal entry to your accounting software that separates the sales tax you collected so you do not accidentally count it as profit. It also ensures your books match your bank account perfectly every time.

Choose if 

• You use cloud accounting software like QuickBooks Online, Xero, or Sage to manage your business finances.

• You want to be audit-ready with financial records that match your Amazon 1099 forms to the penny.

• You sell in multiple currencies and need a tool that handles currency conversions accurately in your books.

Avoid if 

• You use desktop accounting tools, such as QuickBooks Desktop, that are not easily connected to the internet.

• You are looking for a tool that automatically sends your tax payments to the government on your behalf.

• You have a low transaction volume and can easily enter your sales data into your books manually.

6. SimplyVAT

Source 

SimplyVAT is different because it combines software with human service to help you manage European taxes. Selling across Europe requires registering for VAT in multiple countries, which is a very difficult process to do alone. 

SimplyVAT helps you register in countries such as Germany, France, and Italy. Their software then tracks your sales to tell you what you owe. If you receive a letter from a foreign tax office, their team of experts will help you understand it and respond correctly.

Choose if

• You are using the Amazon Pan EU program to store your inventory in warehouses across different countries.

• You want a dedicated human account manager to guide you through the registration and filing process.

• You are concerned about navigating complex tax laws and paperwork in languages you do not speak.

Avoid if 

• You only sell within the United States and have no plans to expand into Europe.

• You want a fully automated software tool with absolutely no human interaction or consulting.

• You are just starting out and cannot afford a service that charges monthly consulting fees.

7. Taxomate

Source 

Taxomate is an affordable automated syncing tool for Amazon sellers who need to keep their costs low. It works in the background to import your orders and settlements from Amazon and sends them to your accounting system. 

It creates invoices or bills that map your sales and fees to the right accounts. It allows smaller sellers to have professional-level books without paying for expensive enterprise features. It also has a feature to track the cost of goods sold so you can see your gross profit.

Choose if

• You are very price-sensitive and want a low-cost solution to sync your data.

• You need to bring in months or years of past data to catch up on your bookkeeping.

• You want to track your inventory costs to see your true profit on each settlement.

Avoid if

• You are a high-volume enterprise seller processing millions of transactions per year.

• You need advanced tax filing services included in the same price as the connector tool.

• You require immediate phone support for troubleshooting technical issues.

8. Numeral

Source 

Numeral is designed specifically for the modern tech stack, making it a top choice for startups and software companies that find legacy tools like Avalara too clunky. Unlike traditional plugins that just calculate tax, Numeral focuses on Ledger Reconciliation. 

It connects to QuickBooks Online to ensure that the revenue you recognize matches the tax you collected and filed. It offers a white-glove service that handles state registrations and filings for you, ensuring you remain compliant as you scale into new states.

Choose if

• Your business has complex billing logic, such as annual plans and upgrades, and you need to automatically track deferred revenue.

• You require Cash to Revenue reconciliation in QuickBooks Online to prevent data mismatches between your payment processor and your bank.

• You want a fully outsourced compliance team that handles state registrations and notice management manually for you.

Avoid if 

• You use QuickBooks Desktop, as Numeral relies on the QuickBooks Online API and does not offer a native desktop connector.

• You have physical retail stores with POS systems, so legacy providers like Avalara are better suited to your physical infrastructure.

• You are a low-volume seller, so the depth of features such as revenue recognition may be unnecessary and cost-prohibitive compared with basic tools.

Choosing the best Amazon seller tax software

Amazon sellers face a unique set of challenges because FBA inventory creates tax obligations in states where you have no physical office. You need software that monitors these warehouse movements to detect exactly when you owe tax and separates your actual sales tax collected from Amazon fees. 

Kintsugi is designed to solve these specific problems by tracking your nexus in real time and automating your liability calculations. If you are ready to stop worrying about audits and automate your entire tax lifecycle, check out Kintsugi today.

Think you don’t have nexus? Our data might disagree. Book a demo

FAQs

1. Do I need to collect sales tax if I sell on Amazon? 

Yes, most states require you to collect sales tax once you exceed certain sales thresholds, typically $100,000 in revenue or 200 transactions in that state.

2. Does Amazon automatically collect and pay sales tax for me? 

Amazon collects and pays tax for you in most states under Marketplace Facilitator Laws, but you still need to register and file returns in many of those states to report the data.

3. What happens if I do not pay sales tax on Amazon? 

State governments can audit your business and force you to pay all the back taxes you owe, plus heavy interest and penalties, which could bankrupt your business.

4. Can I use my accounting software like QuickBooks to file sales tax? 

QuickBooks is great for bookkeeping, but it is not designed to track economic nexus or file complex state sales tax returns, so you usually need a dedicated tool like Kintsugi.