Does Magento Charge Tax on Shipping?

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Does Magento charge tax on shipping?

To start adjusting your shipping options, you can go to System > Configuration > Delivery methods. You should be able to spot the tabs called Flat Rate, Table Rate and Free Shipping

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Type on PDF: All You Need to Know

If the cost of your package exceeds the minimum postage cost charged under your shipping method, your package will be discounted accordingly based on your location and the product you are shipping. Example 1: You have a small purchase of 10.00. You ship the package via First Class Mail. The average first class postage cost is 4.75. Because of the high cost for that piece, the package only has a 2.00 value and will be mailed free of charge. Example 2: You have a larger purchase of 10.00. You ship the package via First Class Mail. The average first class postage cost is 10.85. Because of the high cost for that piece, the package only has a 14.00 value and will be mailed at the standard postage rate. If you notice a difference in the cost of your shipment when using a Flat Rate Shipping Method.