Is shipping taxable in Kentucky?
by April 24, 2025
There are few things that create more mind boggling confusion for e-commerce sellers than sales tax. With all its different rules and applications, it can take years to come to a thorough understanding of when and how it is applied. By the time you do have it all figured out, they will have most likely changed the rules again. In this article, we will explore whether shipping and handling are taxable in Kentucky
Is shipping taxable in Kentucky?
Per the state’s taxing authority, shipping charges are generally taxable if the actual seller of the taxable product makes the delivery. In addition, handling charges are always taxable. When a seller invoices the customer for a single charge for shipping and handling, then this combined charge is taxable regardless of who makes the delivery.
To sum it up, shipping is generally considered taxable in Kentucky.
Handling Kentucky shipping and handling sales tax with TaxJar
The TaxJar app defaults to shipping being taxable in Kentucky. However, if your business does not charge sales tax on shipping in the state, then TaxJar’s Shipping & Handling Override allows you to update that in your state tax settings. This will make the Kentucky Expected Sales Tax Due Report more accurate. This will also tell the TaxJar API to charge sales tax on Kentucky shipping charges.
Learn more about how TaxJar treats shipping and handling here.
