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Avalara Help Center

Does Avalara use the zip code or full address to calculate tax?

Overview

I need to know if Avalara uses the zip code or the full address to calculate tax.

Environment

Avalara AvaTax

Resolution

  • International transactions only require the Country Code
  • The bare minimum required to calculate tax in the US and Canada is the City, State, Zip, and Country Code 
    • However, it is best to provide a full address: Building number, street name, city, state, zip, country code
    • A full address will provide the most accurate tax calculation, whereas the bare minimum will pull the tax rates from the zip code center location
      • The zip code center location will not provide the most accurate tax rate and jurisdictions in many states, mostly due to the large amount of individual tax jurisdictions most states have.
  • If the address cannot validate according to the USPS, then AvaTax will default to the city, state, and zip

 

 

 

 

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