Platform update · Shopify
Shopify tax calculation for return shipping fees
Starting October 23, 2026, return shipping fees will be taxed automatically for US merchants using Shopify Tax or Tax Platform.
Shopify has announced an update to the way return shipping fees are taxed on orders shipped to US addresses. The change takes effect on October 23, 2026.
How return shipping tax will work
For merchants using Shopify Tax or Tax Platform, return shipping fees will be taxed like other shipping charges. Shopify will show the estimated tax when a return is created, record the final amount when it is processed, and automatically include these taxes in tax reports.
Existing shipping tax settings will continue to apply. If shipping is set to be untaxed in a state, return shipping fees in that state will remain untaxed.
What merchants need to do
If you use a manual workaround to calculate, collect, import, or reconcile tax on return shipping fees, review it before October 23 to avoid double-counting tax.
If you do not use a manual workaround, no action is required.
The update applies to orders shipped to US addresses for merchants using Shopify Tax or Tax Platform.