Is the plus 4 zip code extension (9 digit zip) required to calculate sales tax?

Calculating accurate rates is an integral part of TaxCloud's ability to help you remain compliant. For that reason, we highly suggest that a +4 zip code (also known as the 9 digit zip) is added to the destination address field.

Can Taxcloud calculate sales tax using a 5-digit zip code?

TaxCloud can calculate sales tax using a 5-digit zip code. However, a 5-digit zip code can encompass multiple jurisdictions, with potentially different rates. Additionally, there are even some 5-digit zip codes that cross state lines!

Why should I use a 9-digit zip code?

Utilizing a 9-digit zip code is more accurate and stays within the taxable jurisdictions. Furthermore, they are preferable to exact geo-coordinates in that they don't pin an exact house location and therefore identify the consumer to sales tax authorities.