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Avalara Help Center

How can I make freight non taxable?


You want all Freight line items to be non taxable.


Avalara AvaTax


  • Create a tax rule making your freight tax code non taxable or use a different freight code that matches your need
    • Alternatively, use the NT tax code for your Freight item


Note: NT will not show as freight on reports, to see value categorized as freight use the correct freight tax code, and add a tax rule if needed to make non taxable. Most customers find that the issue is that they are using an inappropriate tax code, so it is showing unexpected tax. Using a freight tax code that matches your freight description resolves the issue.