Platform update · Shopify
Shopify tax calculation for return shipping fees
Starting October 23, 2026, return shipping fees will be taxed for US merchants using Shopify Tax or Tax Platform. Existing shipping tax settings will remain in effect.
According to Shopify’s release notes, return shipping fees for orders shipped to US addresses will be taxed like other shipping charges. The update applies to merchants using Shopify Tax or Tax Platform.
How return tax will be calculated
Starting October 23, 2026, Shopify will automatically calculate and apply tax to return shipping fees. The estimated tax will appear when a return is created, and the final amount will be recorded when the return is processed.
The taxes will flow into tax reports automatically.
Existing shipping tax settings still apply
Merchants’ 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 also 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 don’t use a manual workaround, no action is required.
The update covers the calculation and reporting of return shipping tax for merchants using the specified Shopify tax solutions.