In some cases you may need to charge tax on shipping. This can be done on each shipping module and you can choose the tax ID/Amount you wish to charge as well as select if you to charge tax for in-state sales only.

1. Enable tax on a shipping module

Go to Shopping Cart >> Store >> Shipping Module 

This will list our all of the shipping modules. You will want to next click on the “Configure Shipping Method” link to make any setting changes. 

On this form you have the ability to select a Tax to charge as well as choose to charge tax only if it is shipping within your state.

Prior to being able to select a tax to charge you will need to first set that tax up. To learn how to manage taxes go to State Sales tax.