South Dakota treats shipping as taxable in most situations.
General Rule
Taxable: Delivery charges are taxable when connected to taxable sales.
Exempt: Shipping is exempt only if all items in the shipment are exempt.
Handling Charges
Handling or combined “shipping & handling” fees are always taxable.
Best Practices for Compliance
Assume shipping is taxable with taxable goods.
Separate charges on invoices for clarity, though it usually won’t affect taxability.
Example
Shipping taxable appliances for $800 with $50 delivery → $50 is taxable.
Shipping exempt medical supplies with $50 delivery → $50 is exempt.
Stay Compliant with Kintsugi
South Dakota broadly taxes shipping. Kintsugi Intelligence ensures charges are applied correctly without guesswork.
⚖️ Important Notice: Sales tax regulations are subject to change without prior notice. For guidance tailored to your business, please consult a qualified tax advisor.