Shopify Tax integrates effortlessly with your Shopify platform, and it accurately collects sales tax. It's easy to set up and free for some sellers, so it's no surprise it's popular.
Unfortunately, merchants often make a major compliance mistake when using Shopify Tax. They assume that because the platform calculates and collects tax, they are fully compliant with their obligations. This is not the case.
Shopify Tax handles sales tax collection, but only for on-platform sales. It doesn't register you with any state, and it doesn’t file most returns on its own. If you want help with those things, you need a true end-to-end solution like Accounly.
So, which is better for your company?
Shopify Tax is best for:
Accounly is best for:
You can also use them together.
Accounly works as a standalone service, but it also integrates seamlessly with Shopify Tax. Accounly is available on the Shopify App Store, and using both is often the preferred choice for sellers looking for simplicity, affordability, and efficiency.
This guide explains the differences between Shopify Tax and Accounly. It compares pricing, tax calculation, nexus monitoring, registration, and filing. It also explains how the two services can work independently or together, so you can decide whether your company needs one or both.
The trusted solution for U.S. sales tax, VAT, and GST compliance, used by 3,000+ global businesses.
The table below shows some of the key differences between Shopify Tax and Accounly.
It's important to understand how Accounly and Shopify Tax price their services.
Shopify Tax charges a percentage of sales, so its cost scales with revenue.
Accounly charges a flat fee per registration and filing, so its cost scales with the number of states where you’re registered.
Shopify offers free sales tax calculation and collection for sellers who meet specific thresholds, but the rules for qualifying for the free service changed recently.
Here are the requirements, according to the Shopify Tax pricing page:
If your store has more than $25 million in sales per year (for stores created before May 13, 2026) or per lifetime (for stores created after May 13, 2026), you will receive custom pricing. A Shopify Customer Success Manager will work with you to establish your cost structure.
Shopify’s automated filing is charged separately at a cost of $75 per return for the Basic, Grow, and Advanced Plans and $50 per return for Shopify Plus users.
This filing fee applies even if Shopify Tax generates a return but does not submit the return due to unresolved errors. This can come at a high cost and is not an issue with a service like Accounly.
Accounly offers full end-to-end compliance. Returns are reviewed by US-based tax experts before submission, and the Accounly Guarantee covers your costs if we make a mistake, including late filing fees or penalties you incur as a result.
Accounly's pricing works differently:
For example, if a merchant registers and files in six states, Accounly would charge a one-time $900 fee for the initial six registrations plus $450 in filing fees each time it files for you.
With Shopify Tax, you’d pay its percentage fee and still need to register in those six states yourself or pay someone to do it.
The trusted solution for U.S. sales tax, VAT, and GST compliance, used by 3,000+ global businesses.
The biggest difference between Accounly and Shopify Tax comes down to the fact that Shopify's service is limited, while Accounly manages every aspect of sales tax compliance.
Shopify Tax calculates and collects tax at checkout, but it doesn’t tell you where you owe it, register you, or file most returns.
The most important piece of sales tax compliance is knowing where you owe tax. This means you must understand where you have physical nexus (a physical connection to the state) and economic nexus (a sufficient number or volume of sales in a state).
States set different economic nexus thresholds, such as $100,000 or 200 transactions. It's up to you to monitor your sales to customers in each state, and this means you must monitor total sales across all sales channels.
Shopify Tax offers a Tax liability insights page, which displays transactions that occur in Shopify only. If you sell on other channels, you can manually import other orders, but they will only be accounted for on your Tax liability insights page if they have a valid shipping address.
Tax liability is displayed for states with state-level economic nexus tax laws. It does not track nexus for local taxes in home rule states like Alaska or Colorado. And you must manually monitor the page to see when you may have established nexus in each state.
Accounly manages all of this for you, with no manual input required. Accounly offers free nexus monitoring that tracks activity across all your sales channels, including Stripe, Shopify, Amazon, and more. Accounly also offers proactive automatic alerts when a threshold is crossed.
If you're a single-channel seller who only sells on Shopify and you regularly check your dashboard, Shopify Tax may do all you need. But if you sell elsewhere, Accounly's free plan can simplify your compliance obligations, reduce the risk of error, and save you time.
When you establish nexus, you must register with the state and begin collecting sales tax to avoid penalties.
Shopify Tax won't register for you. You must handle this process yourself or work with a third party.
Accounly auto-registers on your behalf for a flat rate of $150 with no commitment. Once you meet the registration trigger, it's just done for you.
Accounly can do this for you even if you're using Shopify Tax, as Accounly integrates effortlessly with Shopify.
For many Shopify merchants, registration is the clearest reason to add Accounly. Shopify Tax offers no registration support at any price.
Once you register with a state, you must file tax returns and remit taxes. Sales tax due dates vary by state rules and usually by your sales volume.
Shopify's automated filing is closed to new enrollment and will end completely after 2026, so only stores already enrolled can use it through the end of the year.
Shopify now recommends using Accounly to handle filing. Accounly offers the following promotion for merchants who are moving from Shopify’s automated filing:
Accounly provides Shopify migration support, concierge service, nexus monitoring, registrations, filings, a virtual mailbox for notice management, and an on-time filing guarantee.
To get the offer, sign up on Accounly's page for Shopify merchants.
In addition, Shopify won’t track sales on outside marketplaces like Amazon or TikTok. While those marketplaces may collect and remit sales tax for you, many states still count those sales towards nexus thresholds or require you to report them, so they need to be tracked.
Accounly handles the situations Shopify Tax can't. Accounly can file for you in every state where you're registered, take care of back taxes (including voluntary disclosure agreements) and amendments, and manage marketplace sales effectively when filing.
When we file for you, every return is reviewed by a US-based tax expert and backed by the Accounly Guarantee. If we file late, we cover your penalties and interest.
The trusted solution for U.S. sales tax, VAT, and GST compliance, used by 3,000+ global businesses.
Yes. You can use Shopify Tax and Accounly together, or choose Accounly for a full end-to-end solution.
The Shopify Tax apps documentation indicates you can still use a third-party app to manage sales tax collection instead of the Shopify Tax built-in service. This means if you choose, you can use other tax calculation and collection tools in your Shopify storefront.
However, you can also continue using Shopify Tax and opt to use Accounly to fill the gaps. If you use Accounly and Shopify Tax together:
Many Shopify brands use Accounly with Shopify Tax to meet all their compliance needs because Accounly provides a true end-to-end solution that lets Shopify merchants manage sales tax in as little as five minutes a month.
Book a demo or get started with Accounly today to understand how we help ecommerce sellers and learn what we can do for you.
>> Read More: Managing Sales Tax for Digital Goods on Shopify