Questions? We have answers.

Shipping

Is Shipping Taxed?

Most likely no but depends on the final destination of the product. For example, in the USA shipping is taxed in about half the States as long as the shipping charge is separate from the sale (see table below).

 

State Shipping Taxed? Source
Alabama Not subject to sales tax if the shipping charges are listed separately on the invoice. Admin Code 810-6-1-.178
Alaska No sales tax. N/A
Arizona Not subject to sales tax. Handling charges are taxed. If shipping and handling, the entirety is taxed. Admin Code § R15-5-133
Arkansas

Subject to sales tax.

GR-18
California Not subject to sales tax if the shipping charges are listed separately on the invoice.

Publication 100 (Shipping and Delivery Charges)Article 12 Regulation 1628

Colorado Not subject to sales tax if the shipping charges are listed separately on the invoice. Colorado Sales Tax Guide (Page 10)
Connecticut Subject to sales tax. Page 13 of IP-2018(5)
Delaware No sales tax. N/A
Florida Not subject to sales tax if the shipping charges are listed separately on the invoice. Sales Tax Rules 12A-1.045FAQ from FL Dept. of Revenue
Georgia Subject to sales tax. § 48-8-2(34)(A)(iv)
Hawaii Subject to sales tax. § 237-3
Idaho Not subject to sales tax if the shipping charges are listed separately on the invoice. tax.idaho.gov (Retailers)§ 63-3613(b)(7)
Illinois Subject to sales tax. Nancy Kean vs Wal Mart Stores Inc.§ 130.415(b)(1)(D)(ii)
Indiana Subject to sales tax. § 6-2.5-1-5(a)(4) , Commissioner’s Directive #23 (top of Page 2
Iowa Not subject to sales tax if the shipping charges are listed separately on the invoice. tax.iowa.gov (Sales and Use Tax Guide)
Kansas Subject to sales tax. Sales Tax and Compensating Use Tax (Page 15)§ 79-3602(ll) Admin Reg. 92019-46
Kentucky Not subject to sales tax if the shipping charges are listed separately on the invoice. Kentucky Sales Tax Facts (Page 2)KRS 139.010(15)(a)(4)KRS 139.210
Louisiana Not subject to sales tax if the shipping charges are listed separately on the invoice. RS 47:301(3)(a)Revenue Ruling No. 01- 007
Maine Not subject to sales tax if the shipping charges are listed separately on the invoice.

Title 36, § 1752(14)Business Guide to Sales, Use, and Service Provider Tax

Maryland Not subject to sales tax if the shipping charges are listed separately on the invoice.

COMAR 03.06.01.08Maryland Sales Tax Guide for Businesses

Massachusetts Not subject to sales tax if the shipping charges are listed separately on the invoice.

Directive 04-5Directive 98-5

Michigan Subject to sales tax. § 205.51(1)(d)Dept. of Treasury (Sales and Use Tax FAQs)
Minnesota Subject to sales tax. § 297A.61(7)(a)Sales Tax Fact Sheet 155
Mississippi Subject to sales tax. Dept. of Revenue FAQsMississippi State Tax Commission Part IV Sales and Use Tax (Pages 16-17)
Missouri Not subject to sales tax if the shipping charges are listed separately on the invoice. Senate Bill No. 16
Montana No sales tax.

N/A

Nebraska Subject to sales tax. § 77-2701.35Nebraska Sales and Use Tax Guide on Delivery ChargesNebraska Sales and Use Tax FAQs
Nevada Not subject to sales tax if the shipping charges are listed separately on the invoice. NAC 372.101NRS 360B.480NRS 360B.290(2)Tax Bulletin SUT 15-0002
New Hampshire No sales tax. N/A
New Jersey Subject to sales tax. Publication ANJ-10Notice: Sales and Use Tax Rate ChangeBulletin S&U-4§ 54:32B-2(oo)(1)Admin. Code § 18:24-27.2
New Mexico Subject to sales tax if the Seller is making the payment to the carrier. In other words, shipping is almost always taxable. § 3.2.1.15 (Page 53)
New York Subject to sales tax except for grocery food § 1101(a)(b)(3)§ 1115(n)(3)
North Carolina Subject to sales tax. § 105-164.3(203)Sales and Use Tax Bulletins (Page 83)North Carolina Dept. of Revenue FAQs
North Dakota Subject to sales tax. § 57-39.2-01(7)§ 81-04.1-01-10 (Page 6)
Ohio Subject to sales tax. § 5739.01(H)(1)(a)(iv)§ 5703-9-52
Oklahoma Subject to sales tax. § 710:65-19-7068, § 1352(12.a)
Oregon No sales tax. N/A
Pennsylvania Subject to sales tax.

61 Pa. Code § 54.1 Pennsylvania Dept. of Revenue FAQ

Rhode Island Subject to sales tax.

§ 44-18-12(a)(iv)Regulation SU 07-33

South Carolina Subject to sales tax. § 117-310Dept. of Revenue (FAQs)
South Dakota Subject to sales tax. Rule 64:06:02:34South Dakota Dept. of Revenue (Publication)
Tennessee Subject to sales tax. § 67-6-102 1997 Letter Ruling #97-22Dept. of Revenue FAQs,
Texas Subject to sales tax. Sec. 151.007Texas Comptroller FAQs
Utah Not subject to sales tax if the shipping charges are listed separately on the invoice. § 59-12-102(103)(c)(ii)Tax Commission FAQs
Vermont Subject to sales tax. § 9701(4)(A)Dept. of Taxes FAQs
Virginia Not subject to sales tax if the shipping charges are listed separately on the invoice.

23VAC10-210-6000(A)

Washington Subject to sales tax. § 82.08.807WAC 458-20-110(3)
West Virginia Subject to sales tax. § 11-15B-2(49)(A)(iv)§ 110-15-89 (Page 142)
Wisconsin Subject to sales tax. § 77.51(15b)(b)4Dept. of Revenue FAQs
Wyoming Not subject to sales tax if the shipping charges are listed separately on the invoice. § 39-15-105(a)(ii)(A)Dept. of Revenue (Freight and Transportation Charges)
Was this article helpful?
0 out of 0 found this helpful
Have more questions? Submit a request

Articles in this section