Minnesota taxes shipping charges when they’re connected to taxable goods.
General Rule
Taxable: Delivery charges are taxable if taxable items are shipped.
Exempt: If all goods in the shipment are exempt, shipping is exempt as well.
Handling Charges
Handling, packing, or combined “shipping & handling” charges are always taxable.
Best Practices for Compliance
Itemize shipping on invoices.
Watch mixed orders — if taxable goods are included, shipping is taxable.
Example
Shipping taxable books with $15 delivery → $15 is taxable.
Shipping exempt groceries with $15 delivery → $15 is exempt.
Stay Compliant with Kintsugi
Minnesota’s rules track the taxability of the items sold. Kintsugi Intelligence automatically applies the correct treatment for each 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.