Can freight charges be taxed?

Answer by  Att4372 (1704)

Freight is a shipping expense and part of the cost / sales price of goods. In some states, freight charges are subject to sales tax. In those states, if an item costs $10 with $5 shipping charge, you pay sales tax on $15; therefore, freight is taxed.

Answer by  mayi (212)

yes frieght charges may be taxed and collected by government depending on the size of the freight and the amount of cargo that it contains. Freight can be taxed for business porpuses.

Answer by  nkhill (73)

If you add freight charges to your invoice then that is part of the gross taxable income - you can then take a deduction for actual freight expenses.

Answer by  Chaneygirl (1755)

Yes, it can be sales taxable and is income taxable. Whether is is sales taxable depends on your state's sales tax regulations. You probably need to check with your state's rules and regulations to get a definite answer on this. Since it is money collected from a customer, it is income taxable with a corresponding expense for the shipping expense.