TEXAS SALES TAX 101: Are Delivery or Shipping Charges Taxable?

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Texas-state-sealShipping and handling charges are taxable if the charges they are associated with the sale of taxable goods or service.

To illustrate, let’s say you sell some furniture in the amount of $500 with a $40 delivery charge and collect sales tax on each sale.  Because the sale is taxable, you must also collect sales tax on the $40 delivery charge.

If the customer gives you a resale certificate or if they are an exempt organization (government or charitable organization), then no tax is collected on either amount.

Like any good CPA, I need to add a disclaimer:  Unfortunately, it is impossible to offer comprehensive tax info over the Internet, no matter how well-researched or written.  And remember, I love my readers, but having me bookmarked on your computer doesn’t make you a client.   Before relying on any information given on this site, contact a tax professional to discuss your particular situation.