Drake Tax
Drake Tax is a professional tax preparation software designed to help small to mid-sized accounting firms manage federal and state returns with integrated e-filing and practice management tools.
TaxJar
TaxJar is a cloud-based compliance platform that automates sales tax calculation, reporting, and filing for e-commerce businesses to simplify multi-state tax management and ensure accurate financial record-keeping.
Quick Comparison
| Feature | Drake Tax | TaxJar |
|---|---|---|
| Website | drakesoftware.com | taxjar.com |
| Pricing Model | Subscription | Subscription |
| Starting Price | $99/month | $19/month |
| FREE Trial | ✓ 0 days free trial | ✓ 30 days free trial |
| Free Plan | ✘ No free plan | ✘ No free plan |
| Product Demo | ✓ Request demo here | ✓ Request demo here |
| Deployment | ||
| Integrations | ||
| Target Users | ||
| Target Industries | ||
| Customer Count | 0 | 0 |
| Founded Year | 1977 | 2013 |
| Headquarters | Franklin, USA | Woburn, USA |
Overview
Drake Tax
Drake Tax provides you with a comprehensive suite of tools to handle federal and state tax returns for individuals and businesses. You can speed up your workflow using the built-in data entry shortcuts and automatic calculations that minimize manual errors. The platform includes integrated e-filing, allowing you to track the status of every return from transmission to IRS acceptance in real-time.
Beyond simple tax prep, you can manage your entire practice with included tools for document storage and client write-ups. The software is designed specifically for professional tax preparers who need a reliable, high-volume solution without the per-form costs found in other professional suites. You can choose between unlimited filing versions or pay-per-return options depending on your firm's specific volume and budget requirements.
TaxJar
TaxJar helps you navigate the complexities of e-commerce sales tax without the manual headache. You can connect your storefronts to automatically calculate taxes in real-time, track where you have reached nexus thresholds, and generate signature-ready reports. It eliminates the stress of keeping up with changing state laws and varying tax rates across thousands of jurisdictions.
The platform is designed specifically for online sellers, from small boutiques to high-volume enterprise retailers. You can automate your entire filing process with the AutoFile service, which handles your returns and payments directly with the states. By centralizing your tax data from multiple channels like Amazon, Shopify, and Walmart, you maintain a single source of truth for your business compliance.
Overview
Drake Tax Features
- Lookback Tools View prior-year data instantly while working on current returns to ensure consistency and catch missed deductions for your clients.
- Automatic Calculations Update your tax results instantly as you enter data, with the software automatically choosing the most beneficial filing status.
- Integrated E-filing Submit federal and state returns directly to the IRS and track their acceptance status without leaving the application.
- Drake Documents Store and organize your client's tax records electronically to maintain a paperless office and meet record-keeping requirements.
- Multi-State Returns Generate and file multiple state returns simultaneously, with data flowing automatically from the federal return to save you time.
- Tax Planner Compare different financial scenarios for your clients to help them minimize their future tax liabilities and plan effectively.
TaxJar Features
- Real-time Calculations. Calculate accurate sales tax at checkout for every jurisdiction using a rooftop-level API that handles complex state rules.
- Nexus Tracking. Monitor your sales across different states to see exactly when and where you have met economic nexus requirements.
- AutoFile Service. Enroll in automated filing to have your sales tax returns submitted and paid to the state on your behalf.
- Multi-Channel Sync. Connect your Shopify, Amazon, and eBay accounts to pull all your transaction data into one centralized dashboard.
- Reporting Tools. Generate return-ready reports that break down your sales and tax collected by state, county, and local district.
- TaxJar API. Integrate tax calculations directly into your custom application or ERP with a developer-friendly API that scales with you.
Pricing Comparison
Drake Tax Pricing
- Includes 15 tax returns
- Additional returns for $30 each
- All tax packages included
- Integrated e-filing
- Drake Documents and Scheduler
- Free online training
- Everything in Pay-Per-Return, plus:
- Unlimited individual returns
- Unlimited business returns
- Unlimited state returns
- Drake Tax Planner
- No per-return fees
TaxJar Pricing
- Automated data syncing
- Economic nexus insights
- Return-ready reporting
- Email support
- Up to 200 orders per month
- Everything in Starter, plus:
- Real-time tax calculation API
- Exemption certificate management
- Multi-channel reporting
- Phone support
- Advanced user permissions
Pros & Cons
Drake Tax
Pros
- Fast data entry with keyboard-driven shortcuts
- Excellent customer support with short wait times
- All-in-one pricing includes all states and forms
- Reliable performance even during peak filing dates
Cons
- Interface looks dated compared to modern web apps
- Learning curve for navigating complex form trees
- Limited cloud-based features in the desktop version
TaxJar
Pros
- Seamless integration with major platforms like Shopify
- Clear visibility into state-by-state nexus status
- AutoFile saves hours of manual data entry
- User-friendly dashboard simplifies complex tax data
Cons
- AutoFile carries an additional fee per filing
- Pricing increases quickly with higher order volumes
- Limited support for international VAT requirements