Is the plus 4 zip code extension (9 digit zip) required to calculate sales tax?
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.
How do I get the 9-digit ZIP+4?
You don't have to look up ZIP+4 codes by hand. There are two ways to get an accurate 9-digit ZIP into your tax calculations:
- Send a complete street address: When you pass a full destination address — street, city, state, and 5-digit ZIP — TaxCloud standardizes it and resolves the ZIP+4 for you automatically before calculating tax. Providing the complete street address is the simplest way to get the most accurate rate.
- Use the Address Validation API: If you want to standardize and store the full ZIP+4 yourself (for example, at checkout or when cleaning up your address data), call TaxCloud's Address Validation API. You submit an address and it returns the standardized version, including the +4 extension, which you can then pass into your tax calculation requests.
:::info Address validation supports US addresses only. See the Address Validation API reference in our developer docs for request and response details.
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