Is shipping taxable?

Shipping charges can be subject to sales tax in many states. If an order is being shipped to a state that taxes shipping, TaxCloud automatically knows to calculate and apply the appropriate sales tax according to the Taxability Information Codes (TICs) applied to the Shipping line item in cart.

TaxCloud provides many TICs for shipping to account for various factors (including in-store pick-up options). Commonly used TICs related to transportation, shipping, postage, and similar charges are: 

  • Postage/Shipping TIC 11010 (used when you are charging your customer your actual shipping cost which can be demonstrated by your invoice from your shipping provider.)
  • Shipping & Handling TIC 11000 (used when you offer "Flat Rate Shipping" regardless of your actual shipping costs, or if you markup your shipping charges).

For a complete list of TaxCloud's taxability codes, please visit our TIC page and select the eyeglass icon under Explore to access the parent and sub-categories available. Additional feeds of the TIC information are available on the same page if you scroll down.

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