Is shipping taxable?
Sales tax laws regarding the taxability of shipping charges vary by state. Some states tax shipping charges, while others do not. This can be confusing for online sellers, especially those dealing with sales tax nexus in multiple states. To help, we’ve compiled a guide on how each state handles shipping charges.
Here are some important assumptions for using this guide:
- You are an e-commerce seller, not a traditional brick-and-mortar merchant.
- You deliver items to customers via common carriers (e.g., UPS).
- You do not use your own vehicle for deliveries, as states may have different rules for this.
- You are shipping taxable items to customers within your state (e.g., shipping from Georgia to a customer in Georgia).
For more specific scenarios not covered here, it’s best to contact a representative in your state. Sort through the list below to find your state and any other states where you have sales tax nexus.
States where shipping is taxable
In the following states, shipping charges are taxable when included as part of an order, regardless of whether they are bundled with the item’s price or listed separately:
- Arkansas
- Connecticut
- District of Columbia
- Georgia
- Hawaii
- Indiana
- Kentucky
- Minnesota
- Mississippi
- Nebraska
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Vermont
- Washington
- West Virginia
- Wisconsin
States where shipping is not taxable if separately stated
In the following states shipping charges are not subject to tax,if listed separately from the selling price of the item. However, they are taxable if included as part of the item’s price:
- Alabama
- Arizona
- California
- Colorado
- Florida (Shipping may be taxable if it meets certain criteria.)
- Idaho
- Illinois
- Iowa
- Kansas
- Louisiana
- Maine
- Maryland (Like Virginia, if shipping and handling are combined, shipping is taxable)
- Massachusetts
- Michigan (This changed in 2023, read more here)
- Missouri
- Nevada
- Oklahoma
- Utah
- Virginia (NOTE: if shipping and handling charges are combined, then that charge is taxable even if separately stated)
- Wyoming
For further insights, explore the Startxpress Help Center and Blog. If you have questions or need support, reach out anytime at support@startxpress.io!
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