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How New Jersey Handles Tax on Shipping

Learn how New Jersey handles sales tax on shipping charges

Updated over a month ago

In New Jersey, shipping charges follow the taxability of the goods being shipped.


General Rule

Taxable: Shipping is taxable if taxable goods are shipped.

Exempt: Shipping is exempt if all items in the shipment are exempt.


Handling Charges

Handling fees and combined “shipping & handling” charges are always taxable.


Best Practices for Compliance

  • List delivery charges separately on invoices.

  • Check mixed orders carefully — taxable items make the shipping taxable.


Example

  1. Shipping taxable electronics for $600 with $30 delivery → $30 is taxable.

  2. Shipping exempt groceries with $30 delivery → $30 is exempt.


Stay Compliant with Kintsugi

New Jersey’s rules are straightforward but can be tricky with mixed orders. Kintsugi Intelligence ensures the correct treatment automatically.


⚖️ Important Notice: Sales tax regulations are subject to change without prior notice. For guidance tailored to your business, please consult a qualified tax advisor.

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