Massachusetts generally exempts shipping from sales tax if it’s separately stated. Handling charges, however, are taxable.
General Rule
Exempt: Separately stated shipping charges are exempt.
Taxable: If shipping is included in the price of the goods or bundled with handling, the entire amount is taxable.
Handling Charges
Handling fees are always taxable.
“Shipping & Handling” combined charges are taxable in full.
Best Practices for Compliance
Separate shipping from handling on invoices.
State actual delivery costs to keep them exempt.
Example
A taxable product with $20 “Delivery” listed separately → $20 is exempt.
The same product with $20 “Shipping & Handling” → $20 is taxable.
Stay Compliant with Kintsugi
Massachusetts requires careful separation of shipping and handling. Kintsugi Intelligence ensures your invoices are structured correctly to avoid over-taxation.
⚖️ Important Notice: Sales tax regulations are subject to change without prior notice. For guidance tailored to your business, please consult a qualified tax advisor.