In Iowa, shipping charges are taxable when connected to the sale of taxable goods.
General Rule
Taxable: Shipping is taxable if taxable items are shipped.
Exempt: If the items shipped are exempt, shipping is exempt as well.
Handling Charges
Handling and combined “shipping & handling” fees are always taxable.
Best Practices for Compliance
Separate delivery charges on invoices.
Review mixed orders carefully — shipping is taxable if taxable items are included.
Example
Shipping taxable appliances with $30 delivery → $30 is taxable.
Shipping exempt food products with $30 delivery → $30 is exempt.
Stay Compliant with Kintsugi
Iowa’s rules can complicate mixed orders. Kintsugi Intelligence applies the correct treatment every time, saving you the guesswork.
⚖️ Important Notice: Sales tax regulations are subject to change without prior notice. For guidance tailored to your business, please consult a qualified tax advisor.