Teach Soap

Hi. Can somebody give me some info on how to calculate sales tax when I am shipping soap from one state to another? Sales tax is 8.9%, right ? Do I include the cost of shipping in the total to be taxed? From a quick google search I think it is, so if I am selling two pounds of soap @ $15/lb and charging $9 shipping. would it be $39(0.089)= $3.471. So I should invoice them a total of $42.47?

Generally speaking, you only have to charge sales tax within the state where you are located. For example, I only charge sales tax for customers in North Carolina, since that is where I live. A person in another state would not be charged, unless you have some sort of physical presence in that state (like an office). Sales tax rates vary between states, counties, and cities. You'd have to find out what your local rates are for in-state selling.

Here's a helpful blog post from the SBA about this:

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~Kelly~

Yes! You are right. Thank you very much. Need to apply for that Tax Permit anyway tho but in this case it is to someone out of state. Appreciate 'ya.