In Maryland, shipping charges are taxable when they’re tied to taxable items.
General Rule
Taxable: Delivery, freight, and transportation charges are taxable if the items shipped are taxable.
Exempt: If the shipment consists entirely of exempt goods, then shipping is exempt.
Handling Charges
Handling, packing, or combined “shipping & handling” charges are always taxable.
Best Practices for Compliance
Separate delivery charges from the price of goods on invoices.
Check mixed orders — if taxable items are included, shipping becomes taxable.
Example
Shipping taxable electronics for $300 with $30 delivery → $30 is taxable.
Shipping exempt prescription drugs for $300 with $30 delivery → $30 is exempt.
Stay Compliant with Kintsugi
Maryland’s rules directly link shipping to the taxability of the items sold. Kintsugi Intelligence ensures shipping charges are applied correctly, no matter 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.