---
title: "How to charge tax on shipping cost"
description: "Find out how to enable it, how CartGenie calculates shipping taxes, and whether you need it or not"
url: https://help.cartgenie.com/en/articles/74-how-to-charge-tax-on-shipping-cost
collection: "Taxes"
updated: 2025-04-24
language: en
---

# How to charge tax on shipping cost

Find out how to enable it, how CartGenie calculates shipping taxes, and whether you need it or not

## Enable charging tax on shipping cost

To enable taxes on shipping charges, go to your tax settings and open up a taxable jurisdiction (or create one if you haven’t done so already).

[Go to Tax Settings](https://dash.cartgenie.com/settings/taxes)

Enable the checkbox to “Charge tax on shipping”

![](https://staticfiles.gleap.io/ghelparticle/M8sRgfcSQDgKAPk0tnbcKFTfDM7ZuMBvDlhljWsUDSYNQbCXQX1OzlwN6IetZtn2MwRyiWPmh5p.png)

## How is shipping tax calculated?

**We calculate taxes on shipping charges by multiplying the order shipping cost x the default jurisdiction tax rate.**

So in the case above, any charges for shipping would be taxed at 8.25%. This amount is added to the shipping line item at checkout and is not seen separately.

Example:

```javascript
$100.00 item
$10.00 shipping
$9.08 tax (8.25%)
= $119.08 total cost
```

> **Info:** Note: Product level taxes and shipping taxes are calculated separately. If a customer purchases an item in a tax class with a unique tax rate (ex: 20%), taxes on shipping will still be charged at the default tax rate for the jurisdiction (ex: 8.25%).

## Should I be charging taxes on shipping?

Avalara has a shipping tax guide for each U.S. state. [Read more here](https://www.avalara.com/blog/en/north-america/2022/02/how-to-handle-sales-tax-on-shipping-a-state-by-state-guide.html).

We recommend consulting a tax expert if you have any questions for your specific jurisdiction, products, or business.