Sales Tax 101 Shipping States WI

Is Shipping Taxable in Wisconsin?

by Mark Faggiano

Shipping Taxability Wisconsin

Last updated July 14, 2017

Every state is different when it comes to sales tax. And that goes for sales tax on shipping charges, too. Some states require online sellers to take the amount charged for shipping and handling into account when charging¬†sales tax. Today we’ll take a look at whether or not you should consider shipping taxable in Wisconsin.

Sales Tax on Shipping in Wisconsin?

Here’s what the Wisconsin Department of Revenue has to say about sales tax on shipping charges in Wisconsin:

Delivery charges taxable Wisconsin

This seems fairly straightforward, right? When the goods or services you are selling are subject to tax then then any charges – including the delivery charge – is also taxable. For example, if you ship via USPS, the charge is taxable if you’re shipping taxable goods. But even if you charge a delivery fee to deliver in your own company van, that charge is subject to sales tax, too.

According to p. 42 of Wisconsin Department of Revenue Publication 201, if you ship a shipment that includes taxable and non-taxable items, you are required to figure out what percentage of the package makes up the taxable item(s) and what percentage makes up the non-taxable item(s). The percentage of shipping charges applicable to the taxable item(s) is subject to sales tax, while the percentage of shipping applicable to the nontaxable items is not subject to sales tax.

charge sales tax on shipping in Wisconsin

Summary: Shipping Charges are Taxable in Wisconsin

Wisconsin is straightforward when it comes to charging sales tax on shipping. If an item you sell is taxable and you charge your buyer shipping charges, then those charges are subject to sales tax. If a package includes taxable and nontaxable items, then only the portion of the shipping charges used to ship the taxable item are subject to sales tax.

Do you sell in Wisconsin and have questions or comments about the taxability of shipping in the Badger State? Start the conversation in the comments!

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