Having trouble with sales tax? It seems like there always are issues popping up, chiefly due to the the fact that states establish their own laws about when it is applied. One issue in particular is whether or not to charge sales tax on shipping and handling. Let’s see how that’s handled for the good people of Maryland, from Baltimore to Annapolis.
Is shipping taxable in Maryland?
Gotta love a short and sweet answer! Thanks, Maryland. It appears that sellers will not have to pay sales tax on shipping, as long as the shipping charge is separately stated on the invoice. The shipping charge must also be separated from any handling fee. If it’s combined with a handling or processing fee, then the shipping charge is taxable.
Handling Maryland Shipping and Handling Sales Tax with TaxJar
You are not required to charge sales tax on shipping charges to customers in Maryland as long as you separate out any “handling” charges on the invoice you send to your customer. (Handling charges are taxable.)
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