Sales Tax Software Market Report 2026

The sales tax software market size has grown rapidly in recent years. It will grow from $10.64 billion in 2025 to $11.8 billion in 2026 at a compound annual growth rate (CAGR) of 10.9%. The growth in the historic period can be attributed to increasing complexity of multi-jurisdiction tax laws, expansion of digital commerce transactions, rising risk of compliance penalties, growth of cross-border sales activities, adoption of automated accounting systems.

The sales tax software market size is expected to see rapid growth in the next few years. It will grow to $17.83 billion in 2030 at a compound annual growth rate (CAGR) of 10.9%. The growth in the forecast period can be attributed to increasing adoption of ai-driven tax determination, rising focus on cross-border tax compliance, expansion of real-time reporting requirements, growing demand for scalable tax automation, increased regulatory scrutiny on indirect taxes. Major trends in the forecast period include increasing adoption of automated tax calculation engines, rising demand for real-time tax compliance updates, growing integration with erp and e-commerce platforms, expansion of cloud-based tax solutions, enhanced focus on audit readiness.

The growth of digital transactions is expected to drive the expansion of the sales tax software market in the future. Digital transactions refer to electronic exchanges of value made through online or mobile platforms, providing secure and efficient payment methods. The increase in digital transactions is attributed to the growth of the internet, widespread smartphone usage, advancements in payment technologies, and a shift toward cashless and contactless payment systems. Sales tax software plays a critical role in managing tax compliance for digital transactions, ensuring accurate and efficient tax calculations across online platforms. For example, in June 2024, Australia and New Zealand Banking Group, an Australia-based financial services company, reported that global non-cash transactions amounted to 1.3 trillion in 2023 and are expected to grow to 2.3 trillion by 2027. This growth in digital transactions is fueling the demand for sales tax software.

Leading companies in the sales tax software market are concentrating on developing innovative products such as cloud-based tax automation platforms to improve user experience, streamline tax compliance processes, and ensure accuracy in tax calculations across various industries and regions. A cloud-based tax automation platform is a software solution hosted in the cloud that assists businesses in automating tax-related processes such as tax calculation, compliance, filing, reporting, and documentation. For instance, in May 2023, CereTax Inc., a US-based software company, introduced a new user interface aimed at simplifying the sales tax automation process for businesses of all sizes. The updated portal in CereTax's cloud-based tax automation platform makes it easier for users to manage tax calculations, rules, and detailed reporting. Designed for simplicity and efficiency, the interface promotes operational continuity for businesses. By focusing on flexibility and user experience, the portal enhances the platform’s ability to provide advanced tax solutions while maintaining a user-focused approach.

In September 2023, Ryan LLC, an India-based tax consultancy, acquired the sales and use tax recovery services and audit defense business line from Avalara for an undisclosed sum. This acquisition boosts Ryan's ability to support enterprise clients, including Fortune 500 companies, by improving tax recovery, savings, and audit defense services across various industries and regions. Avalara is a US-based software company that provides tax compliance automation solutions.

Major companies operating in the sales tax software market are Oracle Corporation, SAP SE, Intuit Inc., Avalara Inc., Vertex Inc., Sovos Compliance LLC, Thomson Reuters, Wolters Kluwer N.V., Sage Group plc, Epicor Software Corporation, Infor Inc., Zoho Corporation, Xero Limited, MYOB Group Limited, Paddle, Quaderno Inc., Taxually Limited, Anrok Inc., Complyt Inc., Billtrust.

North America was the largest region in the sales tax software market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the sales tax software market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the sales tax software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The sales tax software market includes revenues earned by entities by providing services such as real-time calculation of sales tax, e-filing services, audit support, cross-border tax compliance, and analytics and insights. The market value includes the value of related goods sold by the service provider or included within the service offering. The sales tax software market consists of sales of cloud-based sales tax software, audit and risk management tools, and exemption certificate management tools. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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