How Connecticut Handles Tax on Shipping

In Connecticut, shipping charges follow the taxability of the items being sold. If the items are taxable, the shipping charge is also taxable.

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General Rule

Taxable: Shipping is taxable when attached to taxable items.

Exempt: If all items in the shipment are exempt (e.g., certain groceries or medicines), then shipping is exempt.

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Handling Charges

Handling, packing, or combined “shipping & handling” fees are always taxable, even if shipping could otherwise qualify for exemption.

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Best Practices for Compliance

• Separate shipping on invoices to make exemptions clear when shipping exempt items.
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• Review mixed orders: If one taxable and one exempt item are shipped together, shipping is taxable on the whole order.
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Example

1. A taxable product with $15 shipping → shipping is taxable.
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2. An exempt prescription drug with $15 shipping → shipping is exempt.
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Stay Compliant with Kintsugi

Connecticut’s rules can be tricky with mixed orders. Kintsugi Intelligence ensures shipping charges are correctly taxed or exempt based on what’s in the order.

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