Estimate tax based on zip code

Question

Using Google Checkout, I'm able to estimate tax based on the zip code that's assoicated with a user's account when they click "Buy." The user then sees the tax amount when they checkout.

Is it possible to estimate tax based on the user-entered zip code before a user reaches the checkout page? This is similar to the functionality in Google Products currently. I see some data here (http://code.google.com/apis/checkout/articles/Google_Checkout_Articles_Zip_Level_Taxes.html) but am not sure how to implement it within the checkout button I have.

Is there any other tax table or API that allows estimation of taxes based on zip code? Does Paypal offer this functionality?

Answer 1

have you looked at AvaTax module?

http://www.magentocommerce.com/magento-connect/one-pica-avatax-connector.html

Answer 2

If your building a cart from scratch you can use avalara's api. If your using a specific package such as magento, 3dcart, or so on they already connect to the major solutions. Avalara's solution also bridges the gap between the sales software and the accounting software such as Quickbooks and Sage.

Otherwise if the company your building this for is small enough and has time to update them manually, you can go to the states website or go to a place that compiles free tax rate tables such as taxrates.com

One major warning with any solution, sales tax taxability rules can be complex, this compounds when your scaling an e-commerce business. Even if your a small business in one state, there are multiple layers to the rules. Best to work talk with an accountant to double check when your initially setting this up.