In Indiana, shipping charges are taxable when connected to the sale of taxable items.
General Rule
Taxable: Delivery charges (freight, postage, transportation) are taxable when taxable goods are sold.
Exempt: If all items in the shipment are exempt, then delivery is exempt as well.
Handling Charges
Handling, packing, or combined “shipping & handling” charges are always taxable.
Best Practices for Compliance
Separate shipping on invoices for transparency.
Check mixed orders carefully — shipping becomes taxable if taxable goods are included.
Example
Shipping taxable furniture for $200 with $20 delivery → $20 is taxable.
Shipping exempt medical equipment for $200 with $20 delivery → $20 is exempt.
Stay Compliant with Kintsugi
Indiana’s rules closely follow the taxability of the underlying items. Kintsugi Intelligence automates this logic so shipping charges are always treated 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.