Sales Tax Holiday FAQ's

Does the exemption apply to shipping and handling charges?

If all items in a shipment qualify as eligible items and the sales price for each is within the sales tax holiday price threshold, the shipping and handling charges are not taxable.

If the shipment includes exempt items and taxable items (including an eligible item with a sales price in excess of $20 (school supplies)/$75 (clothing)), the seller should allocate the shipping and handling charges by a percentage based on the total price of the taxable items to the total price of all the items in the shipment.  The retailer must charge tax on the portion of the shipping and handling charges allocated to the taxable items in the shipment.

SearchIcon