In Tennessee, shipping charges are taxable if they’re tied to taxable goods.
General Rule
Taxable: Delivery is taxable when taxable items are shipped.
Exempt: If all goods in the shipment are exempt, delivery is exempt too.
Handling Charges
Handling and combined “shipping & handling” charges are always taxable.
Best Practices for Compliance
List delivery separately on invoices.
Be cautious with mixed orders — taxable items make shipping taxable.
Example
Shipping taxable electronics with $30 delivery → $30 is taxable.
Shipping exempt food with $30 delivery → $30 is exempt.
Stay Compliant with Kintsugi
Tennessee’s rules are simple but require care with mixed orders. Kintsugi Intelligence ensures compliance 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.