Sales tax in the US can be a bit complicated because it not only varies by state but also by county, city, and even district. To make sure your orders are taxed correctly, we apply sales tax based on the delivery address ZIP code. You can check specific rates using TaxJar.
General formula
In most cases, sales tax is calculated like this: (Printful Enterprise product price + shipping + services) × tax rate = sales tax
- Printful Enterprise product price is what we charge for the item and its fulfillment.
- Shipping is the delivery cost.
- You can find the list of states where Printful Enterprise charges sales tax here.
In some states that don’t tax shipping, the formula is: (Printful Enterprise product price + services) × tax rate = sales tax
State-specific exceptions
Some states require different calculations:
- Alaska, California, and Massachusetts: We use your retail price (what you charge your customer): retail price × tax rate = sales tax
- Connecticut: Tax is based on your retail price plus retail shipping: (retail price + retail shipping) × tax rate = sales tax
If your retail price isn’t available, we use the Printful Enterprise price, except in California, where we add 10% to the Printful Enterprise price to estimate the retail price.
New York’s item-based rules
In New York, sales tax is calculated per item:
- Items over $110 (Printful Enterprise price) and non-apparel items are taxed at the standard rate.
- Clothing and footwear items under $110 per item or pair may qualify for reduced rates, depending on the destination county.
States where shipping isn’t taxed
These states don’t include shipping when calculating sales tax:
Alabama, Arizona, California, Colorado, District of Columbia, Idaho, Iowa, Kansas, Maine, Maryland, Massachusetts, Michigan, Nevada, Oklahoma, Utah, Virginia, and Wyoming.
For those states, the formula is: (Printful Enterprise product price + services) × tax rate = sales tax
Note that “Price” refers to either your retail price or the Printful Enterprise price, depending on the rules of the destination state. California and Massachusetts always require the retail price.
Retail delivery fees: Colorado and Minnesota
Some states charge additional delivery fees on top of sales tax. These are separate from the sales tax but apply under similar conditions:
- Colorado charges a retail delivery fee on most orders delivered by motor vehicle.
- Minnesota adds a $0.50 fee to qualifying orders over $100 delivered by motor vehicle to a Minnesota address.
These fees may still apply even if the order contains tax-exempt products like clothing. However, if you submit a valid resale certificate or nonprofit exemption, the fee may be waived.