How Texas Handles Tax on Shipping

In Texas, shipping charges are taxable if they’re tied to taxable goods, unless they’re clearly separated.

General Rule

• Taxable: Delivery is taxable when included in the price of taxable goods.
  ​

• Exempt: If separately stated and only covers shipping, it may be exempt.
  ​

Handling Charges

Handling or combined “shipping & handling” fees are always taxable.
​

Best Practices for Compliance

• Itemize delivery charges on invoices.
  ​​

• Separate shipping from handling to preserve exemptions.
  ​

Example

1. Selling taxable furniture with $40 “Delivery” separately stated → $40 is exempt.
   ​​

2. Selling same item with $40 “Shipping & Handling” → $40 is taxable.
   ​

Stay Compliant with Kintsugi

Texas requires careful invoice presentation. Kintsugi Intelligence ensures charges are properly separated and taxed correctly.

⚖️ Important Notice: Sales tax regulations are subject to change without prior notice. For guidance tailored to your business, please consult a qualified tax advisor.