1.

On the Admin menu, select Sales > Tax > Product Tax Class.

2.

In the upper-right corner, click the Add New button.

3.

Enter a Class Name for the new tax class. For example, “Shipping.”

4.

When complete, click the Save Class button.

1.

On the Admin menu, select System  > Configuration.

2.

In the panel on the left, under Sales, select Tax.

3.

Click to expand the Tax Classes section.

4.

Set Tax Class for Shipping to the class you created for shipping.

5.

When complete, click the Save Config button.