Sales Tax Fundamentals
Get up to speed on the basics of sales tax
Is Shipping Taxable in Maryland?
byJanuary 21, 2021
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
The TaxJar app defaults to the most common Maryland 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 Maryland Expected Sales Tax Due Report more accurate. This will also tell the TaxJar API to charge sales tax on Maryland shipping.Learn more about how TaxJar treats shipping and handling here.Have questions or comments about taxable shipping in Maryland? Leave a comment and start the discussion! And to learn more about TaxJar and get started, visit TaxJar.com/how-it-works.
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.)
Please note: This blog is for informational purposes only. Be advised that sales tax rules and laws are subject to change at any time. For specific sales tax advice regarding your business, contact a tax advisor.