Connecting a direct API integration with TaxCloud

If you are using a system that TaxCloud doesn’t offer an integration for, you may still be able to connect it using our API, if that platform offers an integration with the TaxCloud API.

In this guide, you will learn how to:

• Register the connection in TaxCloud
• Get your API credentials
• Provide those credentials to your external platform
• Test the connection
• Go live

Prerequisites

Ensure you have these in place before you begin:

Complete TaxCloud Setup

Your TaxCloud account must be set up so that the integration works correctly.

1. Sign into TaxCloud.
2. Complete your TaxCloud Business Profile.
3. Set up your locations and states.

Determine which Taxability Information Codes you need

Review the list of TaxCloud Taxability Information Codes (TICs) to determine which codes apply to the goods & services that you sell.

1. If all of your goods and services fall under one TIC, you can set that up yourself.
2. If you need to use multiple TICs, please use the product catalog feature if using the API v3 version. If using API v1, you may be able to configure each individual TICs from your connected platform product catalog. See more details in step 4 below. 

Confirm you can configure the platform

To connect a system to TaxCloud using our API, you need to have access to that system’s tax configuration or integration layer. This means you can install plugins, enter API credentials, or make modifications as needed to complete the setup. If you’re working with a third-party provider, check that it offers an integration with TaxCloud before proceeding.

Determine which API version you’ll use

TaxCloud currently supports two versions of its API. You don’t need to choose a version; your platform or developer will have already done that. The best way to tell which version you’re using is to check the type of credentials required:

• Version 1 (v1): You’ll be asked for a Login ID and API Key.
• Version 3 (v3): You’ll be asked for a ConnectionID and API Key.

Version 3 is newer, more secure, and gets new features. However, if your integration was built with Version 1, that’s okay. Just make sure you have the correct credentials before continuing.

Step 1: Create a Custom API Integration

1. Log in to your TaxCloud account.
2. Go to Integrations > Create New Integration > Custom-API.
3. Add your integration name and dev platform URL.
4. Choose a TIC code for default tax rules.
5. Save to generate your ConnectionID.

Step 2: Get Your TaxCloud API Credentials

Your credentials will depend on which version of the TaxCloud API your platform or integration is using. Use the sections below to find the right information for your version.

If You’re Using API v3 

You’ll need two credentials:

Click on the Manage API Keys button to create a new API key for your new integration or copy an already existing one for that integration. 

If You’re Using API v1

You’ll need two credentials:

Step 3: Add Your Credentials to the External Platform

Once you’ve collected your API credentials, the next step is to add them to the system you’re connecting to TaxCloud. Follow the instructions below based on the API version you’re using.

If You’re Using API v3

1. In your external platform, navigate to the section where tax settings or external APIs are configured.
2. Locate the fields for Connection ID and API Key.
3. Paste your Connection ID into the appropriate field.
4. Paste your API Key into the corresponding field.

If you’re Using API v1

1. In your external system’s tax configuration area, locate the settings for tax service or API integration.
2. Find the fields labeled Login ID and API Key.
3. Paste your Login ID into the appropriate field.
4. Paste your API Key into the corresponding field.

Step 4: Set up Taxability Information Codes (TICs)

After determining what your products TIC(s) are, you need to set them up as they determine how your products are taxed. Setting up your TICs is also based on your API version.

For API v3

You have two options for assigning TICs:

• In Your Connected Platform: If your external platform supports assigning TICs in its product catalog, you can set the appropriate TIC for each product there.
• Using TaxCloud’s Product Catalog: You can also manage your product catalog directly within TaxCloud and assign TICs to each item from the UI.

When you add a new product, you can add the product’s TIC as shown below:

For API v1

API v1 does not support the Product Catalog feature in the UI. Hence, you have the two options described below:

• In Your Connected Platform: If supported, assign TICs in the product catalog of your connected platform.
• In Your API Calls: You must include the correct TIC at the line item level in each API request for tax calculation.

Step 5: Set up Exemptions

To properly process transactions for tax-exempt customers, you must ensure both the customer and their exemption certificate are correctly registered. You do this by following the steps below:

1. Mark the customer as exempt in your connected platform.

2. Upload their exemption certificate in the app. Navigate to Settings > Exemption Certificates. Click Add to add a new exemption certificate. Complete the steps in the resulting windows successfully. Make sure to use the customer ID from the connected platform.

   

To effectively record your exemptions, you can use the certificates you created in two ways:

• Attach the certificate ID you receive after creating the certificate to each customer exempt transaction.
• Or you can allow the system to automatically match transactions involving exempt customers with their certificate. However, you need to ensure that you have a certificate for each exempt transaction. Failure to do so will mean a delay in the final tax filing, unless resolved. 

Step 6: Test the integration

Before going live, test that the external system can talk to TaxCloud correctly. You can:

• Trigger a test checkout using dummy data.
• Check TaxCloud > Transactions to see if test data is received.
• Validate that sales tax values match what you expect.

Step 7: Activate the integration

Once you’ve confirmed that the connection works and tax is being calculated correctly:

1. Return to TaxCloud > Integrations.
2. Open the integration you created.
3. Click Go Live.

Live status means the platform is now authorized to send real transactions to TaxCloud.

Want to Build Your Own Integration?

If you're planning to build API integration yourself (e.g., for calculating tax in code, assigning TICs, or authorizing transactions), use our Developer Guide instead. The guide explains how to interact with the API directly, with endpoint-level details and examples.