State of California California Department of Consumer Affairs

Sales Tax (Delivery/Shipping Charges)

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SALES TAX (DELIVERY/SHIPPING CHARGES)

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Sales tax for delivery or shipping charges vary, depending on whether or not the charges are separate charges on an invoice or are delivery charges that are included in the unit price.


Delivery or shipping is not taxable, providing:

  1. The item is shipped directly to the purchaser using the U.S. Postal Service, an independent contract carrier or common carrier other than the consumer's own vehicle.
  1. The purchaser is not charged for more than the actual cost of shipping.


Delivery or shipping is taxed when:

  1. Delivery, shipping, or handling charges are included in the unit price so that the whole transaction is taxed as a unit, one time, altogether. Handling charges, even when separately stated, are subject to taxation.
  1. Freight charges represent the cost of shipping to a consumer's business or home. The whole transaction is taxed as a unit, one time, altogether, as stated in #1.


Equalization (California Board of)
450 N Street
Sacramento, CA 95814
(800) 400-7115
www/boe.ca.gov


See also: Franchise Tax Board



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