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