Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 6, 2019 12:18:32 PM

If i buy a item out of state do i have to pay tax on the item also the shipping cost 225 do i have to pay tax on that too they say no tax collected at time of sale

0 2 693
2 Replies
Level 15
Jun 6, 2019 12:18:32 PM

Generally your state will collect  sales tax on the whole amount -- called use tax. Some states, I believe, do use tax only on the cost of the article ( bought  outside the state  for use in-state) but most include service/shipping cost i.e. the total out-of-pocket and do give you credit  for taxes paid (if)  to another state.

Level 6
Jun 6, 2019 12:18:34 PM

Here is an example of information relevant to California tax on shipping that might, or might not, be taxable.
See the following table from the California Tax and Fee Administration:
   https://www.cdtfa.ca.gov/formspubs/pub100/#applying