In Texas, shipping charges are taxable if they’re tied to taxable goods, unless they’re clearly separated.
General Rule
Taxable: Delivery is taxable when included in the price of taxable goods.
Exempt: If separately stated and only covers shipping, it may be exempt.
Handling Charges
Handling or combined “shipping & handling” fees are always taxable.
Best Practices for Compliance
Itemize delivery charges on invoices.
Separate shipping from handling to preserve exemptions.
Example
Selling taxable furniture with $40 “Delivery” separately stated → $40 is exempt.
Selling same item with $40 “Shipping & Handling” → $40 is taxable.
Stay Compliant with Kintsugi
Texas requires careful invoice presentation. Kintsugi Intelligence ensures charges are properly separated and taxed correctly.
⚖️ Important Notice: Sales tax regulations are subject to change without prior notice. For guidance tailored to your business, please consult a qualified tax advisor.