In Kentucky, shipping charges are taxable if they’re connected to taxable sales.
General Rule
Taxable: Delivery charges are taxable if taxable items are shipped.
Exempt: If exempt items are shipped, the shipping charge is exempt.
Handling Charges
Handling, packing, or combined “shipping & handling” charges are always taxable.
Best Practices for Compliance
Separate delivery charges clearly on invoices.
Watch out for mixed orders — shipping is taxable if taxable items are included.
Example
Shipping taxable electronics for $400 with $40 delivery → $40 is taxable.
Shipping exempt food products with $40 delivery → $40 is exempt.
Stay Compliant with Kintsugi
Kentucky’s shipping rules are closely tied to the taxability of the products. Kintsugi Intelligence ensures that delivery charges are automatically 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.