Skip to main content

News · E-Commerce

Shopify to calculate tax on return shipping fees in the US

For US merchants using Shopify Tax or Tax Platform, starting October 23, 2026, return shipping fees will be taxed automatically like standard shipping charges.

1 min read Source: changelog.shopify.com

What changed: Per the Shopify Changelog, starting October 23, 2026, return shipping fees for US merchants using Shopify Tax or Tax Platform will be taxed like any other shipping charge; Shopify calculates and applies the tax automatically, so merchants no longer need to manually fix under-collection on returns.

Who is affected

Shopify merchants shipping to US addresses who use Shopify Tax or Tax Platform.

What it means for your business

For businesses using Shopify, this means tax on return shipping fees is now calculated and applied automatically, though those using a manual workaround should review it to avoid double-counting.

What to do

If you currently use a manual workaround to calculate, collect, import, or reconcile tax on return shipping fees, review it before October 23, 2026 to avoid double-counting tax. Otherwise, no action is required.

When it takes effect

October 23, 2026 (for US merchants using Shopify Tax or Tax Platform).

Source: https://changelog.shopify.com/posts/tax-is-now-calculated-on-return-shipping-fees

Related reading

First conversation

Tell us what you want to do, and we will work out together where to start.

In the first call we talk through your business, where things stand and what matters most. We say plainly which parts make sense for us to take on and which you should run yourself.

Cookies and measurement

Apart from what the site needs to work, measurement or advertising tags only run if you allow them. No measurement tags are active on this site right now. Details