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Overview

The /calculate endpoint allows you to determine the amount of sales tax to charge on a transaction. By providing details such as customer information, line items, and pricing, you’ll receive accurate tax calculations based on applicable jurisdictions and rates.

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Factors Affecting Tax Rates

Our system considers the following factors to determine the appropriate tax for a transaction:
  1. Seller Information
    • State Registrations:
      • If your corporation is not registered to pay taxes in a state, the /calculate endpoint will return a tax amount of 0 for that state.
      • If your corporation is registered in a state, we calculate the tax amount based on that state’s rates and rules.
  2. Product-Specific Information
    • Product Taxability:
      • Product Configuration: Each corporation can define and manage its product catalog via our /products endpoints. (Coming soon)
      • Product Code Assignment: For every product in the catalog, you can assign a specific product code using the API.
      • Tax Rate Computation: When the /calculate endpoint is called, each line item includes a product id. We use this id to retrieve the pre-configured product code for that product, determining its taxability for the transaction.
        • If a product is classified as non-taxable based on its product code, the tax amount for that specific line item will be 0.
        • If a product is taxable, the tax is calculated based on the product’s price and applicable tax rates.
  3. Customer Information
    • Shipping Address: We compute the tax rate based on the shipping address provided for each transaction.
    • Customer Exemptions: Transactions can be exempted from sales tax based on properties of the customer making the purchase. You can read more about these exemptions here.

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Sample Calculation Object

The /calculate endpoint returns a JSON object containing the transaction details and calculated taxes. Example response: 
{
  "data": {
    "id": "a7850851-be24-4c71-b9a3-3035e2d0c617",
    "corporation_id": "74df772f-9260-42cf-9c20-3b613b60fecd",
    "transaction_date": "2025-07-01",
    "transaction_currency": "USD",
    "discount": 0,
    "total_amount": 14338.01,
    "total_tax": 1190.05,
    "total_due": 15528.06,
    "customer_details": {},
    "tax_currency": "USD",
    "addresses": {
      "ship_from": null,
      "ship_to": {
        "address_line_1": "123 N Central Ave",
        "address_line_2": "",
        "address_line_3": "",
        "postal_code": "85004",
        "city": "Phoenix city",
        "state": "AZ",
        "country": "US"
      }
    },
    "line_items": [
      {
        "line_item_id": "51f4ac30-e4f6-42e9-bb34-80305ea870b2",
        "amount": 14338.01,
        "taxable_amount": 14338.01,
        "quantity": 1,
        "tax_code": "TPP",
        "product_id": "",
        "line_number": 1,
        "effective_tax_rate": 8.3,
        "base_tax_rate": 9.1,
        "tax_breakdown": [
          {
            "jurisdiction_name": "ARIZONA",
            "jurisdiction_type": "STATE_OR_PROVINCE",
            "rate": 5.6,
            "base_rate": 5.6,
            "tax_class": "TAXABLE",
            "tax_class_reason": "TAX_APPLIED"
          },
          {
            "jurisdiction_name": "MARICOPA COUNTY",
            "jurisdiction_type": "COUNTY",
            "rate": 0.7,
            "base_rate": 0.7,
            "tax_class": "TAXABLE",
            "tax_class_reason": "TAX_APPLIED"
          },
          {
            "jurisdiction_name": "PHOENIX CITY",
            "jurisdiction_type": "CITY",
            "rate": 2,
            "base_rate": 2.8,
            "tax_class": "TAXABLE",
            "tax_class_reason": "TAX_APPLIED"
          }
        ],
        "total_tax_due": 1190.05,
        "tax_collected": 0,
        "is_tax_included": false,
        "product_source_platform": "",
        "product_source_platform_id": ""
      }
    ]
  }
}