California Sales Tax for Interior Designers - Shipping Charges

Tax does not apply to charges for shipping or delivery for nontaxable sales. For taxable sales, your charges for shipping or delivery are generally not taxable if all of the following conditions apply:

  • The charges are separately stated on your invoice.
  • A contract or common carrier, or the U.S. Mail, makes the delivery.
  • Your charges to the client for delivery do not exceed the amount you pay to the carrier.
  • Charges are for transportation directly to the client. Charges for delivery from the factory or dealer to your place of business or other intermediate point are generally taxable.
If you deliver goods using your own vehicle, or sell them for a price that includes delivery charges, the delivery charge is usually taxable.

Your invoice should use terms such as delivery, shipping, freight, or postage to represent delivery charges.

Other related charges, including handling, are generally taxable.

If you charge a single amount that combines delivery and a related handling charge, for example, shipping and handling, you must apply tax to the handling portion of the charge.

The shipping portion is not taxable if it meets the criteria listed above.

It is important to keep good records that fully document your shipping costs.


Source: California Department of Tax & Fee Administration (CDTFA)

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