In Connecticut, shipping charges follow the taxability of the items being sold. If the items are taxable, the shipping charge is also taxable.
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.
Handling Charges
Handling, packing, or combined “shipping & handling” fees are always taxable, even if shipping could otherwise qualify for exemption.
Best Practices for Compliance
Separate shipping on invoices to make exemptions clear when shipping exempt items.
Review mixed orders: If one taxable and one exempt item are shipped together, shipping is taxable on the whole order.
Example
A taxable product with $15 shipping → shipping is taxable.
An exempt prescription drug with $15 shipping → shipping is exempt.
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.
⚖️ Important Notice: Sales tax regulations are subject to change without prior notice. For guidance tailored to your business, please consult a qualified tax advisor.