We apply sales tax rates based on zip codes. The tax rate is different in each state, and within each state, it varies by county, city, and district.
The general formula for calculating sales tax is:
((Printful product price + shipping + services) * tax rate) = Sales Tax
In this formula, services mean a digitization fee, if applicable.
The Printful price is what we charge you for the product and fulfillment. This formula is applicable to states that Printful charges sales tax in, but there are several exceptions:
- For Massachusets and California, retail price is used when calculating sales tax: (Retail Price * Tax Rate) = Sales Tax
- For Connecticut, retail price and retail shipping are used when calculating sales tax: ((Retail Price + Retail Shipping) * Tax Rate) = Sales Tax
The retail price is the price that you charge your customer. If we don't know your retail price, then we use our Printful price (except in California).
For New York sales tax will be calculated per item, not per order:
- For items over $110 (Printful price) and non-apparel items, the standard tax rate will be applied;
- For clothing (including hats and fabric) and footwear items below $110 per item or pair, sales tax will be charged at a reduced rate, depending on the county where the order is shipped to. Reduced rates of the specific counties can be found here.
Some states don't include shipping in their sales tax calculation. These states are:
- Alabama
- Arizona
- California
- District of Columbia
- Idaho
- Iowa
- Maine
- Maryland
- Massachusetts
- Nevada
- Oklahoma
- Utah
- Virginia
- Wyoming
This means the formula for these states looks like this:
(Price * Tax Rate) = Sales Tax
In this formula, the price is either retail price or Printful price, depending on the state to which your order will be shipped (remember that in MA and CA retail price is used).
All US-based orders going to Colorado and charged sales tax will be also charged the retail delivery fee. The retail delivery fee has the same requirements as the Colorado sales tax, though it isn’t a part of the sales tax, but a separate fee applied in addition to the tax. If you have a resale certificate and you submit it to Printful, we won’t charge you the retail delivery fee. You can learn more about the retail delivery fee here.
