Whether you charge sales tax on shipping depends on where the order is going. Some states tax delivery charges on a taxable sale no matter how you bill them. Others exempt shipping when it is listed separately on the invoice. A few also look at who does the delivering, when title passes, or whether the customer could have picked the item up. To see the combined rate that applies to an order's destination, use the US sales tax calculator.
The table below summarises each state's rule for shipping charges on a sale of taxable goods, with the state guidance it comes from. Each state links to its full sales tax guide.
This article is educational information, not tax advice. Shipping rules turn on invoice wording and contract terms, so confirm the treatment of your own transactions with the state tax agency.
Key takeaways
- No state sales tax, no tax on shipping. Alaska (at the state level), Delaware, Montana, New Hampshire, and Oregon have no statewide sales tax. Local sales taxes in Alaska under the Remote Seller Sales Tax Code include delivery charges in the taxable price.
- Many states tax shipping on taxable sales, even when separately stated. Examples include Arkansas, Connecticut, Georgia, Indiana, Kentucky, Louisiana, Minnesota, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Washington, and Wisconsin.
- Other states exempt separately stated shipping. Arizona, Iowa, Kansas (since 1 July 2023), Maryland, Michigan (since 26 April 2023), Missouri, Nevada, Oklahoma, Utah, and Virginia are examples, usually on condition that the charge reflects actual delivery cost.
- Handling is often treated differently. A combined "shipping and handling" line can make the whole charge taxable in states that would otherwise exempt shipping, including California, Maryland, Maine, and Nevada.
- Delivery usually follows the item. In states that tax shipping, the charge is generally exempt when the item is exempt, and many states require you to allocate a single shipping charge across taxable and exempt items in the same box.
What decides whether shipping is taxable
State rules usually come down to a few questions:
- Is the charge separately stated? Many exemptions only apply when shipping appears as its own line on the invoice and in your books. Folding it into the item price almost always makes it taxable.
- Who delivers it? Some states exempt shipping by common carrier or the U.S. Postal Service but tax delivery in the seller's own vehicle. Alabama, California, and Maine draw this line.
- When does title pass? In states such as California and South Carolina, shipping is more likely to be taxable when the sale is not complete until the goods arrive (for example, FOB destination or a "delivered" price).
- Could the customer avoid the charge? Florida and Illinois look at whether the buyer could have picked up the item or arranged its own carrier. A delivery charge the buyer cannot avoid is generally taxable.
- Does it include handling? Charges for handling, packing, or crating are taxable in several states that exempt pure transportation, and a combined charge can take on the handling treatment.
- Is the item taxable? In most states that tax shipping, delivery of an exempt item, such as clothing in New Jersey or groceries in many states, is not taxed.
Shipping taxability by state
"Separately stated shipping" describes a shipping charge on a sale of taxable tangible goods, listed as its own line on the invoice. Rules for local taxes in home-rule jurisdictions, such as Colorado's home-rule cities, can differ.
| State | Separately stated shipping | Conditions | Combined shipping and handling | Source |
|---|---|---|---|---|
| Alabama | Depends | Not taxable when delivered by common carrier or USPS and billed as a separate item. Delivery in the seller's own or leased vehicle is taxable. | Not addressed in the DOR's freight FAQ; confirm with the department | Ala. Admin. Code r. 810-6-1-.178 |
| Alaska | No state sales tax | Local sales taxes adopted under the Remote Seller Sales Tax Code allow no deduction for delivery charges. Local exemptions may apply. | Taxable where local tax applies | ARSSTC Uniform Code |
| Arizona | Not taxable | Must be separately stated on the invoice and in the books and reflect the cost of shipping. "Delivery included" pricing and flat fees unrelated to size, weight, or distance are taxable. | A flat-rate shipping and handling charge is taxable | A.R.S. § 42-5061(A)(2); A.A.C. R15-5-133 |
| Arkansas | Taxable | Freight billed directly to the buyer by a common carrier is not taxable. Freight on nontaxable goods is exempt. | Taxable | Ark. Rule GR-18A |
| California | Depends | Not taxable when shipped by independent carrier or USPS, separately stated, and not above actual cost. Seller's own vehicle: exempt only if separately stated and delivery happens after the sale. "Delivered" pricing is taxable. See our California shipping guide. | Handling portion is taxable; only actual shipping cost is excluded | CDTFA Regulation 1628 |
| Colorado | Not taxable (state) | Delivery charges must be separately stated and separable from the sale. Charges not separately stated are part of the taxable price. Home-rule cities set their own rules. | Not confirmed from official guidance | 1 CCR 201-4, Rule 39-26-102(7) |
| Connecticut | Taxable | Retailer shipping charges are taxable whether or not separately stated. Not taxable when the underlying sale is not taxable. | Taxable; handling billed with shipping is treated as shipping | Conn. Gen. Stat. § 12-407(a)(8)–(9); SN 2001(6) |
| Delaware | No sales tax | Delaware has no sales tax. | Not applicable | Delaware Division of Revenue |
| District of Columbia | Unclear | The Code excludes separately stated transportation charges from the sales price when transportation occurs after the sale, while delivery folded into the price is taxable. We did not find OTR guidance applying the rule; confirm with OTR. | Taxable when not separately stated | D.C. Code § 47-2001(p) |
| Florida | Depends | Not taxable only when separately stated and the buyer could avoid it by picking up the item or arranging its own carrier. Shipping on exempt items is exempt. | Taxable unless the same test is met | Rule 12A-1.045, F.A.C. |
| Georgia | Taxable | Seller delivery charges on a taxable sale are taxable even if optional or separately stated. | Taxable | O.C.G.A. § 48-8-2(34); Rule 560-12-2-.45 |
| Hawaii | Unclear | Hawaii's general excise tax applies to gross receipts without a deduction for costs, and we found no official exclusion for shipping. Goods shipped out of state are exempt. | Unclear | Tax Facts 37-1 |
| Idaho | Not taxable | Must be separately stated and for shipping directly to the buyer. Freight-in to the seller is taxable. | Not taxable if separately stated | IDAPA 35.01.02.061 |
| Illinois | Depends | Taxable when the buyer cannot get the item without paying for delivery. Not taxable when separately contracted, the buyer could pick up, and the charge reflects actual cost. | Same test | 86 Ill. Adm. Code 130.415 |
| Indiana | Taxable | Seller delivery charges are taxable regardless of shipping terms. Charges furnished and billed by a third party are not. Allocate on mixed shipments. | Taxable | IC 6-2.5-1-5; Information Bulletin #92 |
| Iowa | Not taxable | Must be separately stated or separately invoiced. Freight-in to the seller is taxable. | Not confirmed from official guidance | Iowa Sales and Use Tax Guide |
| Kansas | Not taxable (since 1 July 2023) | Must be separately stated, clearly labelled, and reflect a true or reasonable delivery cost. Fuel surcharges and freight-in are taxable. | "Delivery charges" include handling; confirm labelling rules | K.S.A. 79-3602; Notice 23-02 |
| Kentucky | Taxable | Delivery charges are part of gross receipts. Delivery of exempt items is exempt. | Taxable | KRS 139.010; Sales Tax Facts |
| Louisiana | Taxable | Transportation charges are part of the sales price whether or not separately stated. Not taxable when the buyer contracts directly with the carrier. Exempt with an exempt or resale sale. | Taxable | La. R.S. 47:301; RIB 25-025 |
| Maine | Depends | Not taxable when shipped directly to the buyer by common carrier, contract carrier, or USPS and separately stated. Seller's own vehicle is taxable. | Taxable | 36 M.R.S. § 1752(14); Instructional Bulletin 39 |
| Maryland | Not taxable | Must be a separately stated charge for delivery directly to the buyer. Freight into the seller is taxable. | Taxable | COMAR 03.06.01.08; Business Tax Tip #8 |
| Massachusetts | Not taxable | Must be separately stated and reasonable, reflecting the cost of preparing and moving the goods to a location the buyer designates. Since 1 September 2004, title passage and delivery method no longer decide the outcome. | Excluded if separately stated and reasonable; a lump-sum charge with a substantial profit component is not reasonable | M.G.L. c. 64H § 1; Directive 04-5 |
| Michigan | Not taxable (since 26 April 2023) | Must be separately stated on the invoice and separately recorded in the seller's books. | Not taxable when separately stated; "delivery charges" include handling | MCL 205.51a (2023 PA 20) |
| Minnesota | Taxable | Taxable when the item is taxable, even if separately stated. Allocate on mixed shipments. Delivery furnished and billed by a third party is generally not taxable. | Taxable | Minn. Stat. § 297A.61, subd. 30 |
| Mississippi | Taxable | Delivery charges are part of gross proceeds on a taxable sale. Exempt when the item is exempt. | Taxable | MS DOR Delivery Charges |
| Missouri | Not taxable | Usual and customary delivery charges that are separately stated are excluded (since 28 August 2017). | Unclear; the regulation treats handling as taxable | RSMo § 144.010 |
| Montana | No sales tax | Montana has no general sales tax. | Not applicable | Montana Department of Revenue |
| Nebraska | Taxable | Taxable when the buyer pays the retailer. Not taxable when the buyer contracts with and pays the carrier directly. Allocate on mixed shipments. | Taxable | Neb. Rev. Stat. § 77-2701.35; Info Guide 6-507 |
| Nevada | Not taxable | Transportation, shipping, and postage charges separately stated to the buyer are not taxable. Handling, crating, and packing are taxable. | Taxable | NAC 372.101; Tax Bulletin SUT 15-0002 |
| New Hampshire | No sales tax | New Hampshire has no general sales tax. | Not applicable | NH Department of Revenue Administration |
| New Jersey | Taxable | Taxable when the item is taxable. Delivery of exempt items, such as clothing, is not taxable. An unallocated charge on a mixed shipment is fully taxable. | Taxable | Tax Topic Bulletin S&U-5 |
| New Mexico | Taxable | Part of gross receipts when the seller pays the carrier and passes on the cost. Not taxable when the buyer pays the carrier directly. | Taxable | 3.2.1.15 NMAC |
| New York | Taxable | Taxable when the item is taxable. Not taxable when the buyer contracts with the carrier and is billed separately by it. | Taxable | TB-ST-838 |
| North Carolina | Taxable | "Sales price" includes delivery charges on a taxable sale. | Taxable | G.S. § 105-164.3 |
| North Dakota | Taxable | Part of the selling price since 1 October 2005. Not taxable when the buyer independently hires and pays the carrier. | Taxable | ND Guideline: Freight and Delivery Charges |
| Ohio | Taxable | "Price" includes delivery charges, including shipping and postage. | Taxable | R.C. 5739.01(H)(1)(a)(iv) |
| Oklahoma | Not taxable | Separately stated charges for transporting items from vendor to consumer are not taxable. Freight-in is not deductible. | Not taxable when separately stated; delivery charges include handling | OAC 710:65-19-70 |
| Oregon | No sales tax | Oregon has no sales tax. | Not applicable | Oregon Department of Revenue |
| Pennsylvania | Taxable | Taxable even when separately stated. Not taxable when someone other than the vendor both delivers and bills, or when the sale is not taxable. | Taxable | 61 Pa. Code § 54.1 |
| Rhode Island | Taxable | Delivery charges are part of the sales price. Allocate on mixed shipments. | Taxable | 280-RICR-20-70-15 |
| South Carolina | Depends | Taxable when delivered in the retailer's vehicle or by common carrier FOB destination. Not taxable when shipped by common carrier FOB origin. | Follows the same test | SC Reg. 117-310; Revenue Ruling #19-9 |
| South Dakota | Taxable | Taxable even if invoiced separately. Allocate on mixed shipments. | Taxable | SD DOR Shipping and Transportation tax fact |
| Tennessee | Taxable | Taxable regardless of shipping terms. Not taxable when a third party hired and paid by the buyer delivers. | Taxable | Tenn. Code Ann. § 67-6-102; Notice 07-20 |
| Texas | Taxable | Seller delivery charges on a taxable item are taxable even if separately stated. | Taxable | 34 TAC § 3.303; Publication 94-171 |
| Utah | Not taxable | Must be separately stated on the invoice. | Not taxable when separately stated; delivery charges include handling | Utah Code § 59-12-102 |
| Vermont | Taxable | Taxable when the item is taxable. Allocate on mixed shipments. | Taxable | Vermont Sales and Use Tax FAQ |
| Virginia | Not taxable | Separately stated transportation charges to the buyer, including postage and common carrier, are not taxable. Freight-in is not covered. | Unclear; handling is not a transportation charge | 23VAC10-210-6000 |
| Washington | Taxable | Part of the selling price however billed. Allocate on mixed shipments. | Taxable | RCW 82.08.145; WAC 458-20-110 |
| West Virginia | Taxable | Vendor-billed delivery, including postage and handling, has been taxable since 1 October 2009. | Taxable | Administrative Notice 2009-20 |
| Wisconsin | Taxable | Taxable whether the seller, a carrier, or USPS delivers. Charges the buyer pays to a carrier independent of the seller are excluded. | Taxable | Wis. Stat. § 77.51(15b) |
| Wyoming | Not taxable | DOR rules say transportation or outbound freight charges are not taxable and are not part of the taxable sales price of a retail sale. Inbound freight in a wholesale purchase is part of the seller's cost and stays in the retail price. | Not addressed; the rule covers transportation and outbound freight only | Wyoming DOR Rules, Ch. 2, § 5(i) |
How to handle shipping charges in practice
- List shipping on its own line. In states that exempt separately stated shipping, this is usually required, and it never hurts in states that tax it.
- Keep handling separate, or know what combining costs you. Where handling is taxable and shipping is not, a combined line can make the whole charge taxable.
- Charge actual cost. Several states tax the portion of a shipping charge above your actual delivery cost, or deny the exemption for flat fees.
- Allocate on mixed orders. When one box holds taxable and exempt items, split the shipping charge by price or weight in states that require it. New Jersey and New York tax the whole charge if you don't.
- Match your checkout to your terms. Your shipping terms, pickup options, and carrier choice can change the answer in California, Florida, Illinois, and South Carolina.
For more on the general rules, see Can you charge sales tax on shipping? and our California shipping guide.
Kintsugi applies each state's shipping rules at checkout, including separately stated delivery and allocation on mixed carts, so your shipping lines are taxed correctly wherever you sell. Book a demo to see it in action.
Frequently asked questions
Is shipping taxable in most states?
On a taxable sale, more states tax delivery charges than exempt them, especially states that follow the Streamlined Sales Tax definition of "delivery charges." Roughly a dozen states exempt shipping when it is separately stated, and several others depend on the carrier, the shipping terms, or whether the buyer could avoid the charge.
Does listing shipping separately make it tax-free?
Only in some states. Separately stating shipping is required for the exemption in states such as Arizona, Kansas, Maryland, Michigan, and Utah, but it does not help in states such as Georgia, New York, Texas, or Washington, which tax the charge on a taxable sale however it is billed.
Is handling taxable?
Often, yes. Several states that exempt transportation still tax handling, packing, and crating. California, Maine, Maryland, and Nevada tax a combined shipping and handling charge, or its handling portion.
Is shipping taxable if the item is exempt?
Generally no. In states that tax shipping, the delivery charge usually follows the item, so shipping on exempt items is not taxed. When a shipment mixes taxable and exempt items, many states require you to allocate the charge.
Does it matter if I use UPS or USPS instead of my own truck?
In some states. Alabama, California, and Maine treat delivery in the seller's own vehicle differently from delivery by a common carrier or the Postal Service. In most other states, the carrier does not change the result.
