---
title: "Connecting TaxCloud to Stripe"
description: "Connect TaxCloud to Stripe to automatically import transactions, track sales tax collected in each taxing jurisdiction, and simplify the filing process."
canonical_url: "https://support.taxcloud.com/articles/connecting-taxcloud-to-stripe-KFtedSiZgq"
md_url: "https://support.taxcloud.com/articles/connecting-taxcloud-to-stripe-KFtedSiZgq.md"
---
# Connecting TaxCloud to Stripe

Connect TaxCloud to Stripe to automatically import transactions, track sales tax collected in each taxing jurisdiction, and simplify the filing process.

[https://www.loom.com/share/26f36f65c536446ea3f5e832ecb93bd9](https://www.loom.com/share/26f36f65c536446ea3f5e832ecb93bd9)

# How the integration works

TaxCloud works in conjunction with Stripe Tax to ensure that you can report on and file your sales taxes.

| Feature | Managed by… | Details |
|----|----|----|
| Sales tax calculation & collection | **Stripe Tax**: calculates and collects tax initially **TaxCloud**: recalculates taxes after capture as part of the [SST program](https://taxcloud.com/streamlined-sales-tax-csp-provider/) | Ensure that your tax collection settings are the same in both Stripe Tax and TaxCloud, based on the [nexus threshold tracking in TaxCloud](/articles/how-do-i-know-if-ive-reached-economic-nexus-in-a-state-FCadeLu6Pk). |
| Nexus calculations | **TaxCloud** | TaxCloud utilizes its visibility into all of your connected sales channels to [calculate nexus thresholds](/articles/understanding-nexus-threshold-calculations-EIJdnJcfOc). |
| Tax Reporting | **TaxCloud** | TaxCloud offers [reporting and transaction tools](/articles/understanding-tax-reports-and-drilling-into-transaction-details-DaG54aIVrZ) to help you track sales and tax data across all your connected sales channels. |
| Tax Filing | **TaxCloud** | TaxCloud can [file your sales taxes](https://support.taxcloud.com/en-us/articles/understanding-taxclouds-filing-costs-filing-subscription-nvqsDZdoSR), simplifying the process and allowing you to focus on your core business. |

## Supported Stripe Workflows

TaxCloud automatically imports orders and refunds from Stripe as they occur in real time — no manual action is required after the integration is connected.

| **Stripe Action** | **TaxCloud Capture** |
|----|----|
| **[Invoice](https://docs.stripe.com/invoicing/overview)** | Order |
| **[Checkout](https://docs.stripe.com/payments/checkout/how-checkout-works)** | Order |
| **[Refund](https://docs.stripe.com/refunds)** (checkouts only) | Refund |
| **[Credit note](https://docs.stripe.com/invoicing/dashboard/credit-notes)** | Refund |

## Unsupported Stripe Workflows

Some Stripe workflows do not provide TaxCloud with enough information to process. These limitations are due to how Stripe shares data with third-party apps, not TaxCloud.

| Stripe Workflow | Details |
|----|----|
| Direct payment refunds on invoices | Stripe does not include invoice details in the refund event, so TaxCloud cannot match it to the original order. Issue a [credit note](https://docs.stripe.com/invoicing/dashboard/credit-notes) instead. |
| Marketplace transactions via [Stripe Connect](https://docs.stripe.com/connect/charges) | Stripe does not include line items, product details, or shipping information in platform-originated charge events. This is a Stripe platform limitation that affects all third-party tax apps. |
| Non-USD transactions | The integration is currently limited to US jurisdictions. |
| Standalone refunds | Refunds can only be synced if the original order was previously imported into TaxCloud. If an order was placed before the integration was connected, or failed to import, the corresponding refund cannot be processed. [Contact our Support Team](/articles/how-to-contact-taxcloud-2kOI9DHHRK) to have the missing transaction imported. |

# Before you begin

Complete these steps before you set up the integration.

## Verify Stripe requirements

Your Stripe account must meet these requirements to use the integration:

* Using Stripe Tax for tax calculation and collection
* Tax-inclusive pricing disabled for the United States

## Complete TaxCloud Setup

Your TaxCloud account must be set up so that the integration works correctly. If you are new to TaxCloud, your onboarding specialist will assist with this process.


1. Sign into [TaxCloud](https://app.taxcloud.com/).
2. [Complete your TaxCloud Business Profile](https://support.taxcloud.com/en-us/articles/video-how-to-complete-your-taxcloud-business-profile-GY9sSwsrGU).
3. [Set up your locations](https://support.taxcloud.com/en-us/articles/how-to-set-up-a-location-and-state-0WpiODyFaj).
4. [Enable tax collection for the states where you have met physical and/or economic nexus thresholds](https://support.taxcloud.com/en-us/articles/how-to-enable-disable-tax-collection-in-a-state-kP6ZCdvuNS). 

# Step 1: Configure your Stripe Tax settings

Before installing the TaxCloud app, make sure your Stripe Tax settings are complete. TaxCloud uses these settings to determine how tax is calculated across your transactions when they are captured for reporting and filing.

 ![Stripe Tax settings](https://support.taxcloud.com/api/attachments.redirect?id=5e08d1bb-de22-4666-9a35-8e7a31c162a4)


1. In your Stripe dashboard, go to **Settings** (⚙️ in the top right corner) and select **Tax**.
2. Confirm your **head office address** is correctly entered. This is required before Stripe Tax can function.
3. Set a **Preset product category**. This applies to any product in your catalog that does not have a specific tax code assigned. For example, *Software as a Service* is a common default for software businesses.
4. Enable **tax on shipping**.
5. Under **Include tax in prices**, set this to **Automatic** or **No** so that tax is calculated on top of your listed prices. Setting this to **Yes** is not currently supported by the integration.
6. Navigate to the **Integrations** tab within Tax settings. Confirm that **Stripe Tax** shows as *In use* and is enabled for dashboard transactions.

# Step 2: Enable tax collection in Stripe to match TaxCloud

Make sure that your Stripe account is configured to collect tax in the same states as your and TaxCloud account; see the [TaxCloud Thresholds page](https://app.taxcloud.com/go/thresholds).

 ![Tax Locations in Stripe](https://support.taxcloud.com/api/attachments.redirect?id=39019c3d-7b15-4c14-beb5-666ad9330bcc)


1. In the Stripe sidebar, go to **Products > Tax**. 
2. Go to the **Locations** tab.
3. Under state registrations, add any state where you are required to collect tax. During setup, select your registration status:
   * If you’ve already been using TaxCloud, use the [nexus thresholds in TaxCloud](/articles/how-do-i-know-if-ive-reached-economic-nexus-in-a-state-FCadeLu6Pk) to inform where you enable collection.
   * When you enable collection:
     * If you are already registered, choose **I've already registered** and enter your existing details.
     * Otherwise, select **Enable sales tax** and start collecting immediately.
     * Decline any option to file taxes; TaxCloud will be doing that for you.

# Step 3: Assign tax codes to your Stripe products

TaxCloud reads the tax code set on each Stripe product to determine the correct tax rate. Review your product catalog before installing the app.


1. In your Stripe dashboard, navigate to your **Product catalog**.
2. Click on a product and select **Edit product**.
3. Scroll down to the **Product tax code** field and select or search for the most accurate description for that item.
4. Save your changes. Repeat this for each product in your catalog.


:::info
**Note:** Products without a specific code assigned will fall back to the default tax category you configured in the Stripe tax settings.

:::

# Step 4: Connect Stripe to TaxCloud

Once your Stripe Tax settings and product codes are in place, connect your Stripe account to TaxCloud.


1. In [TaxCloud](https://app.taxcloud.com/), go to **Integrations**.
2. Click **Add Connection**.
3. Click **Stripe**, then click **Connect**.
4. Select the Stripe account you’d like to connect, then click **Install app**.

   You will be redirected to your TaxCloud dashboard. The connection is created automatically.
5. The integration will initially appear in **Test mode**. Do not click *Go Live* yet.

# Step 5: Verify the connection and product codes

Before enabling live transactions, confirm that your products and their tax codes have synced correctly into TaxCloud.


1. In your TaxCloud dashboard, click the **Products** tab.
2. Review the list of items synced from Stripe. Check that each product appears and that the **Taxability Information Code (TIC)** assigned looks correct.
3. To override a TIC, click **Edit** next to the product, enter the correct code, and save.
4. Process a **test transaction** and confirm the tax calculation flows correctly into TaxCloud.
5. Once you have verified the test transaction, click **Go Live** to begin collecting tax on real customer payments.

# Step 6: Go Live

When you’re ready to start capturing Stripe transactions in TaxCloud, click **Go Live** on the connection.


1. Select when you’d like invoices to be captured in TaxCloud, recording a tax liability. We recommend using Invoice Finalized (when the invoice is created in Stripe). 
2. If you have historical data in Stripe that you need to pull into TaxCloud, set up **Historical Invoice Import**.

   
   1. If you have past invoices that need to be filed by TaxCloud, set up a tax **filing import**.
   2. If you have past invoices that you want to capture to inform our nexus calculations, set up a **nexus import**. We recommend going back to Jan 1st of the prior calendar year for most customers.
3. Select the confirmations, then click **Go Live**.

Now future Stripe invoices will be captured by TaxCloud. If you configured a historical import, that process begins now.

# Troubleshooting

* **Products not syncing to TaxCloud -** Confirm the TaxCloud app was installed correctly and that you selected the right Stripe account during authorization. Then check the Products tab in TaxCloud to see whether the items appear. If they do not, contact TaxCloud support.
* **Incorrect tax codes showing in TaxCloud** - If the synced TIC is incorrect, you can override it directly in the TaxCloud dashboard. Navigate to Products, click Edit next to the item, enter the correct TIC, and save.
* **Stripe Tax not showing as "In use"** - Make sure you have completed your head office address and state registration steps in Stripe. Then go to **Settings > Tax > Integrations** and confirm the toggles for dashboard transactions are enabled.