Do You Pay Sales Tax on a Shipping Container?

Sales tax is one of the line items people forget when they compare quotes from different shipping containers sales companies, and it can add a meaningful amount to the total. Whether you pay it, and how much, depends on where the container is delivered, how you'll use it, and who you are.

This guide covers the general rules and common exemptions. It isn't tax advice, as rules vary by state and change over time, so check with your state's revenue department or your accountant. For how tax fits into the rest of a quote, see our guide to shipping containers sales prices and costs.

The general rule

In most U.S. states, a shipping container is treated as tangible personal property, like furniture or equipment. That means:

• Buying one is usually subject to sales tax.
• The rate is usually based on where it's delivered, including any local taxes.
• Renting or leasing one is also taxable in many states.

Five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon. Some local areas in Alaska do charge sales tax.

What else might be taxed

Rules differ by state for:

• Delivery charges: taxable in some states, especially when they're part of the sale.
• Modifications: doors, windows and other work done before delivery are often taxed as part of the sale.
• Accessories: lock boxes, vents and shelving are usually taxed like the container.
• Installation or on-site work: may be treated as a service or as part of the sale.

Ask your seller how tax is calculated on each line of your quote.

Common exemptions

You may be able to buy without paying sales tax if you're one of these. You'll usually need to give the seller a certificate before the sale.

Nonprofits and charities

Many states exempt qualifying nonprofit organizations, but not all, and the rules vary widely. Some exempt only certain types of organization, such as charities, schools or churches.

Government agencies

Federal, state and local government purchases are typically exempt with the right documentation.

Resale

If you're buying the container to resell or rent out, you may be able to buy it tax-free with a resale certificate. Tax is then collected when you sell or rent it.

Agriculture

Some states exempt equipment used directly in farming. Whether a storage container qualifies depends on the state and how it's used.

Manufacturing or other business uses

A few states exempt equipment used directly in manufacturing or other specific industries. Containers often don't qualify, but it's worth asking.

How to claim an exemption

1. Find the right form for your state. Most states publish exemption and resale certificates on their revenue department's website.
2. Fill it in with your organization's details and tax ID.
3. Send it to the seller before the sale, so the invoice is issued without tax.
4. Keep a copy with your purchase records.

If you're a tax-exempt organization buying from us, you can request a tax exemption and we'll follow up for your certificate.

Tax on container rentals

Many states tax rentals of equipment, including containers, on each payment. Rent-to-own plans may be taxed as rentals until ownership transfers, or as a sale, depending on the state. Ask how tax is applied before you sign.

Questions to ask your seller about tax

1. Is sales tax included in this quote, or added on top?
2. Which rate are you using: my delivery address, or your location?
3. Is the delivery charge taxed?
4. Are modifications and accessories taxed?
5. Which exemption or resale certificates do you accept, and when do you need them?
6. For a rental or rent-to-own plan, is tax charged on each payment?

A quick checklist before you buy

• I know whether my state taxes container purchases and rentals
• I've checked whether my organization qualifies for an exemption
• I have the right certificate ready to send before the sale
• My quote shows tax as a separate line
• I've asked how delivery and modifications are taxed

Do I pay property tax on a container?

Possibly. In some areas, a container that stays in one place for a long time, especially one modified into a building, can be treated as a structure or as business property for property tax purposes. Check with your county assessor if you're planning a long-term or permanent installation.

FAQ

Is a shipping container taxable?

In most states, yes. It's treated like other equipment, and tax is usually based on where it's delivered.

Do nonprofits pay sales tax on containers?

It depends on the state and the type of organization. Many states offer exemptions for qualifying nonprofits with a certificate provided before the sale.

Is delivery taxed?

In some states. Ask your seller whether delivery is taxed on your quote.

Is renting a container taxed?

Often, yes. Many states tax equipment rentals on each payment.