How does TaxJar treat shipping and handling?

Our TaxJar Reports are programmed to view shipping taxability based on the most common use-case and defaults according to state-specific shipping taxability rules.

The TaxJar API is programmed to either calculate or not calculate tax on shipping in a specific state based on the most common use-case as well.

The good news is TaxJar now supports our customers to over-ride the default settings for shipping taxability on a state by state basis for their particular business setup. 

  • You can change this setting shipping taxability in your State Nexus Settings.
  •  TaxJar users can only change the default taxability settings in states where shipping is generally tax-exempt. In order to prevent unintended errors, we don’t currently offer the option for businesses to default to not collecting tax in a state where shipping is generally taxable.
  • Important: When you make this change and are using the TaxJar API, your calculations will also change.