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Avalara vs FreeTaxUSA

Updated June 2026 · A structured head-to-head comparison.

Sales tax automation.

Free federal tax filing.

The verdict

Both Avalara and FreeTaxUSA are credible tax tools, and the right pick comes down to your priorities.

Avalara — Sales tax automation.

Choose FreeTaxUSA if you'd rather have a lower starting price (free – $7.99 once), a free plan to start on and a higher overall rating (4.6/5). Free federal tax filing.

Avalara vs FreeTaxUSA: side by side

DimensionAvalaraFreeTaxUSA
Starting priceCustomFree – $7.99 onceWinner
Free planNoYesWinner
Pricing modelSubscriptionFreemium
Best forEcommerce, Smb, EnterpriseIndividuals, Budget Filers
PlatformsWeb, ApiWeb
Rating4.0/54.6/5Winner

Avalara key facts

Vendor
Avalara
Pricing
Subscription — Custom
Free tier
No
Platforms
Web, Api
Best for
Ecommerce, Smb, Enterprise
Editor rating
4.0 / 5
Founded
2004
Headquarters
Seattle, WA, USA

FreeTaxUSA key facts

Vendor
TaxHawk
Pricing
Freemium — Free – $7.99 once
Free tier
Yes
Platforms
Web
Best for
Individuals, Budget Filers
Editor rating
4.6 / 5
Founded
2001
Headquarters
Provo, UT, USA

Frequently asked questions

Is Avalara better than FreeTaxUSA?

Neither is universally better — FreeTaxUSA edges ahead on overall rating, but the best choice depends on price, platforms, and your use case. See the side-by-side table above.

Is Avalara or FreeTaxUSA cheaper?

FreeTaxUSA is the more affordable of the two to get started, at free – $7.99 once. Avalara starts at custom; FreeTaxUSA starts at free – $7.99 once.

Can Avalara replace FreeTaxUSA?

Yes for most teams — both are tax tools with heavily overlapping features. The main trade-offs are pricing and platform support, covered in the comparison above.