MA Sales Tax 101 Shipping States

Is Shipping Taxable in Massachusetts?

by Mark Faggiano

Shipping Taxability Massachusetts

Last updated July 14, 2017

Howdy, Bay Staters. Have you ever been confused by sales tax? It really is one of the most complex subjects for small business and it becomes even more indecipherable when states create their own unique set of rules to follow. A topic that has puzzled many a seller is whether to charge sales tax on shipping and handling. Let’s read further on how this is handled in Massachusetts.

Is shipping taxable in Massachusetts? 

Here is what the Massachusetts’ Department of Revenue has to say on the matter:

Massachusetts shipping

Good news! Massachusetts makes it easy to avoid paying sales tax on shipping and handling. All you need do is separate the charges for the shipping from the charges for the goods on the invoice and that the shipping charge reasonably reflects the costs of transportation.

Handling Massachusetts Shipping and Handling Sales Tax with TaxJar

The TaxJar app defaults to the most common Massachusetts scenario – that shipping and handling is non-taxable.
However, if your business does 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 Massachusetts Expected Sales Tax Due Report more accurate. This will also tell the TaxJar API to charge sales tax on Massachusetts shipping.
Have questions or comments about taxable shipping in Massachusetts? Leave a comment and start the discussion! And to learn more about TaxJar and get started, visit TaxJar.com/how-it-works.

In Summary:

You don’t have to pay sales tax on shipping in Massachusetts.
All you have to do in order to not pay sales tax on shipping in Massachusetts is list the charges for shipping separately on the invoice.

Still have questions? Start talking in the comments.

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