Some states do not implement any sales tax.
Tax Policies by State
In New York, if the shipping charge is part of the order and the item is taxable, then the shipping charge is considered taxable.
In California, shipping charges are not subject to sales tax if they are stated separately on the invoice and not more than the actual cost of delivery through a common carrier. Handling charges are taxable, so they must be listed separately as well.
Tax Avoidance on Online Sales
How do I avoid taxes on online sales?
States Without Sales Tax
What states do not tax online purchases?
- Alaska
- Delaware
- Montana
- New Hampshire
- Oregon
Additionally, Hawaii utilizes a general excise tax on business income from retail sales rather than a sales tax to the consumer.
You would not collect your own state’s sales tax on products you’re shipping out of state.
In New York, if the item being shipped is taxable, and if you charge for the shipping as part of the order, then the shipping charge is considered taxable. If the item is not taxable, then the shipping is not seen as taxable either.