Frequently asked questions
Find answers to common questions about Taxy. Can't find what you're looking for? Reach out to our support team.
5Getting Started
What is Taxy?
Taxy is an AI-powered tax automation platform designed specifically for startups. We help you stay compliant with sales tax, maximize your R&D tax credits, and automate quarterly estimated taxes—all in one place.
How do I get started with Taxy?
Getting started is easy! Sign up for a free trial, connect your accounting software and bank accounts, and our AI will analyze your data to identify tax obligations and opportunities. Most customers are fully set up within 15 minutes.
What integrations do you support?
We integrate with 50+ tools including QuickBooks, Xero, Stripe, Gusto, Brex, Mercury, GitHub, and many more. We're constantly adding new integrations based on customer requests.
Do I need to be technical to use Taxy?
Not at all! Taxy is designed to be user-friendly for founders and finance teams of all backgrounds. We handle the technical complexity behind the scenes.
Is there a free trial?
Yes! All plans come with a 14-day free trial. No credit card required to start. You can explore all features before deciding if Taxy is right for you.
5R&D Tax Credits
What are R&D tax credits?
R&D tax credits are federal and state tax incentives that reward companies for investing in research and development. They can significantly reduce your tax liability or even provide a refund.
Does my startup qualify for R&D credits?
Many startups qualify! If you're developing new or improved products, processes, or software, you likely have qualifying R&D activities. This includes writing code, building prototypes, testing new features, and more.
How much can I claim in R&D credits?
The federal R&D credit is typically 6-8% of qualifying expenditures. Many states offer additional credits ranging from 3-24%. For a startup with $500K in qualifying expenses, that could mean $30K-$80K in total credits.
Can startups use R&D credits against payroll taxes?
Yes! Qualifying small businesses (under $5M in gross receipts and in their first 5 years) can apply up to $500,000 per year of R&D credits against their payroll taxes instead of income taxes.
How does Taxy calculate R&D credits?
Taxy connects to your development tools (GitHub, Jira, etc.) and payroll systems to automatically identify qualifying R&D activities and expenses. Our AI categorizes activities and generates IRS-compliant documentation.
5Sales Tax
What is sales tax nexus?
Nexus is the legal term for having sufficient presence in a state that requires you to collect and remit sales tax. This can be established through physical presence (office, employees, inventory) or economic activity (sales over certain thresholds).
How do I know if I have nexus in a state?
Taxy automatically monitors your sales and physical presence across all 50 states and alerts you when you establish nexus. We track both physical and economic nexus thresholds.
Is SaaS taxable?
It depends on the state. Some states tax SaaS as tangible personal property, others exempt it entirely, and some have specific digital goods categories. Taxy tracks the taxability of your products in every jurisdiction.
Does Taxy file my sales tax returns?
Yes! Taxy can automatically prepare and file your sales tax returns in all 50 states. We can also handle remittance, so you don't have to worry about sending payments manually.
What happens if I haven't been collecting sales tax but should have been?
This is called having "back tax liability." Many states offer voluntary disclosure agreements (VDAs) that can limit penalties and interest. Taxy can help you understand your exposure and navigate the remediation process.
5Pricing & Billing
How much does Taxy cost?
Our Starter plan begins at $99/month, Growth at $299/month, and Enterprise pricing is custom. All plans include a 14-day free trial. See our Pricing page for full details.
Can I change plans later?
Yes! You can upgrade or downgrade your plan at any time. Changes take effect on your next billing cycle, and we'll prorate any difference.
Do you offer annual billing?
Yes, we offer a 20% discount for annual billing. Contact our sales team to set this up.
What payment methods do you accept?
We accept all major credit cards, ACH bank transfers, and wire transfers for Enterprise customers.
Can I cancel anytime?
Absolutely. There are no long-term contracts. You can cancel your subscription at any time from your account settings.
4Security & Compliance
Is my data secure with Taxy?
Yes. We use bank-grade security including 256-bit AES encryption, SOC 2 Type II certification, and regular third-party security audits. Your data is encrypted both in transit and at rest.
Who can access my data?
Only authorized team members at your company and, when needed for support, authorized Taxy employees. We maintain detailed access logs and follow the principle of least privilege.
Are you GDPR compliant?
Yes, Taxy is fully GDPR compliant. We provide tools for data export, deletion requests, and consent management.
What happens to my data if I cancel?
You can export all your data before canceling. After cancellation, we retain your data for 30 days in case you change your mind, then permanently delete it per your request.
4Support
How do I contact support?
You can reach our support team via email at support@taxy.io, through in-app chat, or by phone (Enterprise customers). We typically respond within 4 hours during business hours.
Do you offer implementation support?
Yes! All customers receive onboarding support to help them get set up. Enterprise customers receive dedicated implementation assistance and training.
Can I give my accountant access to Taxy?
Absolutely! You can invite external collaborators with role-based permissions. This is a great way to give your accountant or tax advisor visibility into your tax data.
What if I get audited?
Taxy maintains detailed audit trails and generates IRS-compliant documentation. Our Enterprise plan includes audit defense support, where our team works directly with tax authorities on your behalf.
Still have questions?
Our team is here to help. Reach out and we'll get back to you within 24 hours.