Tax is now calculated on return shipping fees
Starting October 23, 2026, for merchants using Shopify Tax or Tax Platform in the United States, return shipping fees will be taxed like any other shipping charge. Shopify calculates and applies the tax automatically, so you don’t need to fix under-collection on returns. When you create a return, you’ll see the estimated tax. When you process the return, we record the final amount. These taxes flow into your tax reports automatically. This update applies to orders shipped to US addresses. Your e
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Changelog What’s new in Shopify Back to Changelog September 25, 2026 Tax is now calculated on return shipping fees Starting October 23, 2026, for merchants using Shopify Tax or Tax Platform in the United States, return shipping fees will be taxed like any other shipping charge.
Shopify calculates and applies the tax automatically, so you don’t need to fix under-collection on returns. When you create a return, you’ll see the estimated tax. When you process the return, we record the final amount. These taxes flow into your tax reports automatically. This update applies to orders shipped to US addresses.
Your existing shipping tax settings still apply — if you’ve set shipping to be untaxed in a state, return shipping fees in that state remain untaxed. * What you need to do: * - If you use a manual workaround today to calculate, collect, import, or reconcile tax on return shipping fees, review it before October 23 to avoid double-counting tax.
- Otherwise, no action is required. Learn more Improvement Orders
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This briefing is based on reporting from Shopify Changelog. Use the original post for full primary-source context.
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