Due to their natural materials, paper handles on paper bags are widely reusable, recyclable, and compostable. They are recycled by being pulped and turned into new bags, shredded to be used as a filler for protecting the contents within the packaging, or recycled into new products like cardboard, creating a new life cycle for the material.
There are some paper handles that are not always recyclable, such as laminated paper handles and waxed paper handles. Laminated paper handles have an added layer of film put on to them, usually to add extra protection, strength, and durability to the paper.
If laminated paper ends up in a paper mill, it could contaminate the rest of the paper. In regards to waxed handles, a water-resistant layer is added when the wax is applied, which prevents the material from being recyclable as it makes it more difficult for the paper to break down.
Handles made from other materials, such as plastic, string, or ribbon, that are attached to a paper bag should be removed before recycling your bag.