Is shipping taxable in Massachusetts?
by September 21, 2023
Please note: This blog was originally published in 2019. It’s since been updated for accuracy and comprehensiveness.
Have you ever been confused by sales tax? It really is one of the most complex subjects for small business and it becomes even more indecipherable when states create their own unique set of rules to follow. A topic that has puzzled many a seller is whether to charge sales tax on shipping and handling. Let’s read further on how this is handled in Massachusetts.
Is shipping taxable in Massachusetts?
Good news! Massachusetts makes it easy to avoid paying sales tax on shipping and handling. All you need do is separate the charges for the shipping from the charges for the goods on the invoice and that the shipping charge reasonably reflects the costs of transportation.
Handling Massachusetts shipping and handling sales tax with TaxJar
The TaxJar app defaults to the most common Massachusetts scenario – that shipping and handling is non-taxable. However, if your business does charge sales tax on shipping, then TaxJar’s Shipping & Handling Override allows you to update that in your state tax settings. This will make the Massachusetts Expected Sales Tax Due Report more accurate. This will also tell the TaxJar API to charge sales tax on Massachusetts shipping. Learn more about how TaxJar treats shipping and handling here. And to learn more about TaxJar and get started, visit TaxJar.com/how-it-works.
Takeaway
You don’t have to pay sales tax on shipping in Massachusetts. All you have to do in order to not pay sales tax on shipping in Massachusetts is list the charges for shipping separately on the invoice.
Ready to automate sales tax? Sign up for a free trial of TaxJar today
Please note: This blog is for informational purposes only. Be advised that sales tax rules and laws are subject to change at any time. For specific sales tax advice regarding your business, contact a tax advisor.
