diff --git a/changelog.txt b/changelog.txt
index cdf2d81cc..b2439866a 100644
--- a/changelog.txt
+++ b/changelog.txt
@@ -1,5 +1,8 @@
 *** WooCommerce Tax Changelog ***
 
+= 3.2.3 - 2025-xx-xx =
+* Fix   - Resolved issue where shipping features were incorrectly loading when in tax-only mode for some installations.
+
 = 3.2.2 - 2025-11-10 =
 * Add   - Allow round tax at subtotal level, instead of rounding per line.
 * Add   - Allow calculating taxes for VAT countries without providing ZIP.
diff --git a/classes/class-wc-connect-help-view.php b/classes/class-wc-connect-help-view.php
index 0a90b5cd3..c7ae6361b 100644
--- a/classes/class-wc-connect-help-view.php
+++ b/classes/class-wc-connect-help-view.php
@@ -298,7 +298,7 @@ public function page() {
 			);
 
 			// Shipping related.
-			if ( ! WC_Connect_Loader::is_wc_shipping_activated() && '1' !== WC_Connect_Options::get_option( 'only_tax' ) ) {
+			if ( WC_Connect_Loader::should_load_shipping_features() ) {
 				do_action(
 					'enqueue_wc_connect_script',
 					'wc-connect-admin-test-print',
diff --git a/readme.txt b/readme.txt
index 5aadc3396..f664fea67 100644
--- a/readme.txt
+++ b/readme.txt
@@ -70,6 +70,9 @@ This plugin relies on the following external services:
 
 == Changelog ==
 
+= 3.2.3 - 2025-xx-xx =
+* Fix   - Resolved issue where shipping features were incorrectly loading when in tax-only mode for some installations.
+
 = 3.2.2 - 2025-11-10 =
 * Add   - Allow round tax at subtotal level, instead of rounding per line.
 * Add   - Allow calculating taxes for VAT countries without providing ZIP.
diff --git a/woocommerce-services.php b/woocommerce-services.php
index 56000cabc..b3deeb06c 100644
--- a/woocommerce-services.php
+++ b/woocommerce-services.php
@@ -915,7 +915,7 @@ public function load_admin_dependencies() {
 			add_action( 'admin_notices', array( $this, 'render_schema_notices' ) );
 
 			// Don't register settings if only_tax mode.
-			if ( '1' === WC_Connect_Options::get_option( 'only_tax' ) ) {
+			if ( ! self::should_load_shipping_features() ) {
 				return;
 			}
 
@@ -950,7 +950,7 @@ public function attach_hooks() {
 			$this->paypal_ec->init();
 
 			// Only register shipping label-related logic if WC Shipping is not active.
-			if ( ! self::is_wc_shipping_activated() && '1' !== WC_Connect_Options::get_option( 'only_tax' ) ) {
+			if ( self::should_load_shipping_features() ) {
 				add_action( 'rest_api_init', array( $this, 'wc_api_dev_init' ), 9999 );
 
 				$this->init_shipping_labels();
@@ -1950,10 +1950,22 @@ public static function has_only_tax_functionality() {
 			$result = ( WC_Connect_Jetpack::is_connected() && '1' === WC_Connect_Options::get_option( 'only_tax' ) ) ||
 						( ! WC_Connect_Jetpack::is_connected() && ! self::_has_any_labels_db_check() );
 
-			// Allow tests to override this functionality
+			// Allow tests to override this functionality.
 			return apply_filters( 'wc_connect_has_only_tax_functionality', $result );
 		}
 
+		/**
+		 * Checks whether shipping-related functionality and views should be loaded.
+		 *
+		 * Shipping features should only be loaded when the WooCommerce Shipping plugin
+		 * is not active and the site is not restricted to tax-only functionality.
+		 *
+		 * @return bool True if shipping features should be loaded, false otherwise.
+		 */
+		public static function should_load_shipping_features(): bool {
+			return ! self::is_wc_shipping_activated() && ! self::has_only_tax_functionality();
+		}
+
 		public function maybe_rename_plugin( $plugins ) {
 			$plugin_basename = 'woocommerce-services/woocommerce-services.php';