Some states consider shipping charges to be a necessary part of a taxable eCommerce transaction, and require online sellers to charge sales tax on delivery charges.

To configure a shipping tax:

  1. Locate the Click here to specify tax rates that will apply only to shipping charges link on the Sales tax configuration page (Store setup > Taxes) and click on it to specify tax rates that will apply only to shipping charges: shipping-tax.png

  2. Click the the New Rate button new-rate.png

  3. Define a zone the tax will be applied to: zone

  4. Set a tax rate in %: rate.png

  5. Click Save changes to make the settings active.

If you have Tax Classes defined, the shipping tax set up will look as follows:

tax-class.png

So you’ll also need to define a tax class applicable to the shipping tax you are setting.