Taxwire Raises $25M to Scale Fully Managed AI Sales Tax Automation Platform

Taxwire, a global sales tax automation platform led by Andrew Rea and Steven Schmatz, has announced $25M in Seed and Series A funding from Headline Ventures, XYZ VC, Vinyl, Recall Capital, and Nomo Ventures.

The platform automates the complexities of sales tax collection, allowing businesses of all sizes to save time, reduce financial liabilities, and seamlessly manage compliance in the US and over 100 other countries.

Addressing Tax Compliance Complexity.

Indirect tax compliance has become increasingly complex as businesses navigate thousands of constantly changing tax rules across local, state, and international jurisdictions. In the United States alone, companies must comply with more than 22,000 city, county, and local tax jurisdictions, each with its own tax rates, product classifications, filing requirements, and deadlines. This complexity increases the risk of compliance errors, financial penalties, and regulatory audits, particularly for businesses relying on manual processes or legacy tax software.

According to Jinal Sanghavi, VP of Finance at Levanta, adopting Taxwire provided greater control over tax operations by introducing customer-approved workflows and improving accuracy. Sanghavi noted that the platform not only resolved tax over-collection issues but also established a more scalable operational foundation to support the company's long-term growth.

Taxwire Platform.

Taxwire provides a fully managed sales tax platform that automates compliance across the United States and more than 100 countries. The platform combines AI with human expertise to streamline tax workflows, reduce compliance risk, and maintain audit readiness.

It integrates with major billing and accounting platforms, including QuickBooks, Xero, and NetSuite, enabling businesses to manage sales tax within their existing financial systems.

Key Platform Capabilities.

Taxwire manages the entire tax compliance lifecycle through automated tax calculations across global jurisdictions, AI-powered product classification, and pre-filing validation that detects missing data and potential compliance issues before returns are submitted.

The platform also provides Slack-based access to tax specialists and AI agents, enabling finance teams to receive real-time guidance on jurisdiction-specific tax requirements.

Leadership Perspective.

Andrew Rea, Founder and CEO of Taxwire, said the company's mission is to eliminate the complexity of sales tax compliance by delivering a highly accurate, transparent, and fully automated platform that enables businesses to manage tax obligations with minimal manual effort.

Taylor Brandt, Partner at Headline, noted that Taxwire's combination of AI and tax expertise addresses longstanding limitations of traditional sales tax software, positioning the platform as an increasingly important solution for fast-growing businesses.