Understanding Stripe Tax pricing

Stripe Tax can be paid for in two different ways: pay-as-you-go or subscription-based pricing. Both are automatically deducted from your Stripe Balance.

Fees for Stripe Tax are specific to each market and based on the location of the merchant, regardless of where the transaction takes place. For example, a merchant based in the US, selling products to various countries, will be charged in US Dollars ($) for all transactions.


Pay-as-you-go (PAYG)

PAYG pricing is usage-based and determined by the number of transactions or the sales volume that you process through Stripe Tax for tax calculation and collection. You only incur fees for transactions in jurisdictions where you have an active tax registration. The pricing is different based on the type of integration you use (no-code vs API).

PAYG No-code integration with Stripe Billing, Invoicing, Checkout, and Payment Links

PAYG pricing for Stripe Tax no-code integration is 0.5% of the volume processed, in jurisdictions where you are registered to collect tax. This volume includes the complete transaction amount, including any calculated sales tax.

PAYG Stripe Tax API pricing

Stripe Tax provides two distinct APIs: Calculations API and Transactions API. Both APIs are priced based on the number of API calls you make.

Fees for the API are specific to each market and based on the location of the merchant, regardless of where the transaction takes place. For example, a merchant based in the US, selling products to various countries, will be charged in US Dollars ($) for all transactions.

Stripe Tax Calculations API only

You will be charged from your Stripe Balance on a daily basis for all Calculation API calls made.

Stripe Tax Calculations and Transactions APIs

With every Transaction API call, you receive up to 10 Calculation API calls for free. If you exceed the 10 Calculation API calls per Transaction API call, $0.05 is charged per additional Calculation call. This is aggregated on a monthly basis.

Stripe Tax API customers are charged on a daily basis for all Calculation and Transaction API calls made. At the end of each calendar month, a rebate is applied if there’s a difference in Calculation API calls. Rebates are typically completed by the end of the month, followed by an additional three business days. Unused Calculation API calls don’t carry over to the next month.

See: Stripe Tax API pay-as-you-go pricing examples

Subscription-based pricing

This is an annual-contract, paid monthly. See Subscription and Cancellation terms for more information.

Stripe Tax provides 4 tiers suited for predictable pricing. Each tier includes a certain number of tax transactions and tax api calculations called an entitlement. If you exceed the entitlement, you’ll be charged an overage fee corresponding to the chosen tier.

You’ll only see the option to sign up for a subscription-based plan if it is currently available in your region. If eligible, sign up or switch to a subscription-based plan from the Your plans page in the Dashboard.

The monthly fee is deducted from the balance at the beginning of the billing period and overage fee is deducted from the balance after the end of the billing period.

FAQ

When should I use Stripe Tax?

We recommend using Stripe Tax to monitor your tax obligations – this functionality is free.

You have the flexibility to activate Stripe Tax for specific transactions as needed. However, Stripe Tax automatically identifies multiple locations to ensure that your transactions are monitored correctly against local registration thresholds and that you always charge customers the right amount of tax. We want to make it easy for you to comply with taxes across all your transactions, so we recommend using Stripe Tax on all your transactions where you have passed a tax threshold and have an active registration.

Is the Stripe Tax Transaction API call the same as a payment transaction?

No, the Stripe Tax Transaction API call is independent from a successful payments transaction. You need to call the Transaction API specifically for Stripe Tax. This is consistent for all Stripe API products.

Related articles

When do you charge a fee for Stripe Tax?

Do you charge a fee when the tax collected is zero?

Do you calculate taxes on Transactions in markets where I’m not registered?