Is shipping taxable in Washington?
by March 21, 2024
Please note: This blog was originally published in 2019. It’s since been updated for accuracy and comprehensiveness.
There are a million questions being asked about sales tax at any given time. It can be one of the most trying (and tiring) subjects for small business owners, especially the rules on sales tax vary from state to state. Then when you get drill down to specific questions, like whether to charge sales tax on shipping, it can be exhausting. Let’s take a look at how the great state of Washington answers this question for its small business owners.
Is shipping taxable in Washington?
According to the state of Washington, you will pay tax on shipping. If the items that you are shipping are taxable, the shipping and handling are taxable. If you have taxable and non-taxable items like silverware and food items, there should be two charges and the fee needs to be fairly allocated between the shipping for the taxable silverware and the shipping for the non-taxable food. Only then is the shipping charge for the non-taxable food not taxable.
Handling Washington shipping and handling sales tax with TaxJar
The TaxJar app defaults to the most common Washington scenario – that shipping and handling is taxable. However, if your business does not 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 Washington Expected Sales Tax Due Report more accurate. This will also tell the TaxJar API to not charge sales tax on Washington shipping. Learn more about how TaxJar treats shipping and handling here. To learn more about TaxJar and get started, visit TaxJar.com/how-it-works.
Takeaway
You will most likely pay sales tax on shipping and handling in Washington.
If you are selling an item that is taxable and you ship it, the shipping and handling is taxable. The only way it isn’t taxable is:
- You are shipping non-taxable items like food.
- There are two separate charges for shipping, if you are shipping both taxable and non-taxable items. Each shipping fee must be balanced for the items shipped.
Other than that, you are going to have to pay sales tax on shipping and handling.
Ready to automate sales tax? To learn more about TaxJar and get started, visit TaxJar.com/how-it-works.
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.
