In Illinois, shipping charges may be exempt if they’re separately stated and not part of the selling price of taxable goods.
General Rule
Exempt: Delivery charges are not taxable if separately stated and optional.
Taxable: If shipping is included in the selling price or required, it is taxable.
Handling Charges
Handling and combined “shipping & handling” charges are always taxable.
Best Practices for Compliance
Clearly itemize shipping on invoices.
Avoid bundling shipping and handling into one fee.
Example
Customer buys taxable electronics for $500 with $25 separately stated “Delivery” → $25 is exempt.
Same sale with $25 “Shipping & Handling” → $25 is taxable.
Stay Compliant with Kintsugi
Illinois distinguishes between optional vs. required delivery. Kintsugi Intelligence ensures you apply tax correctly, regardless of invoice structure.
⚖️ Important Notice: Sales tax regulations are subject to change without prior notice. For guidance tailored to your business, please consult a qualified tax advisor.