About This Tool
Why This Exists
In 2022, I helped a Series A SaaS company respond to a Texas Comptroller audit. They had 47 employees, $8M ARR, and zero sales tax compliance. The back-tax bill was $312,000. Interest and penalties pushed it past $400,000.
The founders weren't negligent. They asked their accountant about sales tax early on. The accountant said "software isn't taxable." That was true in California, where they were based. It wasn't true in Texas, Pennsylvania, or New York—three of their largest markets.
The problem wasn't that they didn't care. The problem was that getting a straight answer about SaaS sales tax requires reading 50 different state tax codes, tracking constantly-changing economic nexus thresholds, and understanding how each state classifies "software as a service"—which ranges from "definitely taxable" (Texas) to "definitely exempt" (California) to "it depends on whether you have a Chicago customer" (Illinois).
I built this tool because that $400,000 audit was preventable. A 15-minute analysis at Series A would have identified the problem. Instead, it became a crisis at Series B due diligence.
Who Maintains This
This tool is maintained by a small team with backgrounds in tax technology consulting. We've spent years helping SaaS companies navigate multi-state sales tax compliance and built this tool to make that knowledge accessible to everyone.
We're not a big company with a sales team. We're practitioners who got tired of seeing the same preventable mistakes. If you find an error or have questions, email us directly at hello@saasnexus.com.
How Rules Are Verified
Every state rule in this tool is verified against primary sources:
- State tax statutes — the actual law (e.g., TX Tax Code §151.0035)
- Administrative regulations — how agencies interpret the law
- Published guidance — official bulletins, rulings, and FAQs from state tax authorities
- Advisory opinions — formal responses to taxpayer questions
We do not rely on secondary sources (blog posts, third-party summaries) for rule determination. Every state analysis includes source citations so you can verify yourself.
Update Process
- Quarterly full verification: Every state rule is re-checked against current official sources every 3 months.
- Continuous monitoring: We track legislative changes and new guidance from priority states (TX, CA, NY, PA, WA).
- User corrections: If you spot an error, email us. We investigate and correct within 48 hours.
See our changelog for a complete history of rule updates.
What This Tool Is Not
- 1.Not tax advice. This tool provides general guidance based on published rules. It cannot account for every fact of your situation. For complex situations, consult a tax professional.
- 2.Not a replacement for compliance software. This tool tells you where you likely have obligations. It doesn't calculate exact tax amounts, file returns, or manage exemption certificates. For that, you need Avalara, TaxJar, or similar.
- 3.Not guaranteed accurate. Rules change. We update quarterly, but a state could issue new guidance tomorrow. Always verify critical decisions against current official sources.
Contact
Found an error? Have a question?
Email: hello@saasnexus.com
We read every email. Error reports are prioritized and typically addressed within 48 hours.