Is shipping taxable in Illinois?
Quick answer
It depends on how you invoice it. In Illinois, separately stated delivery is generally exempt, while bundled shipping-and-handling is taxable.
Delivery is exempt only when separately contracted for and the buyer could realistically avoid it.
Rule summary
How Illinois treats each category.
| Separately stated shipping | Generally exempt |
|---|---|
| Shipping bundled into item price | Taxable — it becomes part of the sales price |
| Handling charges | Taxable in most states, even where freight is exempt |
| Shipping on an exempt item | Not taxable — delivery follows the taxability of the goods |
Source: Illinois Department of Revenue · rates as published for 2026
This page summarizes the general rule. Every state writes exceptions for specific products, and local jurisdictions can differ from the state treatment. Confirm your situation with the Illinois Department of Revenue or a tax professional before relying on it for filing.
Combined rates in Illinois
What a taxable purchase actually costs in Illinois.
Frequently asked
Answers pulled from the same rule set.
- Is shipping taxable in Illinois?
- It depends on how you invoice it. In Illinois, separately stated delivery is generally exempt, while bundled shipping-and-handling is taxable.
- Should I charge tax on shipping for a mixed order in Illinois?
- On an order containing both taxable and exempt goods, tax the delivery charge in proportion to the taxable share of the order, by price or by weight. Document whichever method you use consistently.
More Illinois guides
Other Illinois rules that change the total.