Kansas Sales Taxes
Before selling in Kansas, it's important to know sales tax rules. This includes registering for a sales tax permit and understanding how to apply the right rate.
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Kansas levies a state sales and use tax of 6.5 percent and local taxes (discretionary) for some counties and towns. The state’s sales tax is applied to most tangible personal property and certain services, while its use tax applies to taxable goods purchased from out-of-state retailers. A Kansas city or county can charge an additional 1 percent sales tax on top of the state rate. However, the city or county must follow the same Kansas state sales tax laws and rules. For example, the city or county can’t charge its own separate sales tax on shipping and handling charges.
Sales tax is a complex subject, and new laws are constantly being passed. A good way to stay on top of changes is to sign up for email newsletters from the Department of Revenue. These newsletters will provide you with notifications about new laws that affect sales and use tax. You should also check the KDOR website often to see what legal changes affect your business.
Kansas Sales Tax Rates July 2024
| Rate Type | Rate | Description |
|---|---|---|
| State Sales Tax Rate | 6.50% | Base rate applied to most taxable goods and services |
| Local Sales Tax Rates (Maximum) | Up to 4.25% | Varies by city and county; combined with state rate for total sales tax |
| Food Sales Tax | January 1, 2024: 2% | Phased reduction; full elimination by January 1, 2025 |
Kansas Sales Taxes Changes for the Tax Year 2024
As of January 1, 2024, the Kansas state sales tax on groceries has dropped from 4% to 2%. The change is part of a plan that Gov. Laura Kelly and lawmakers put in place after passing the “Axe the Food Tax” law in 2022. The tax will continue to decrease over the next three years until it reaches zero in 2025. The lower tax does not affect local sales taxes imposed by cities and counties.
The reduced rate applies to food and ingredients, not prepared foods. The tax also does not apply to certain items, such as bottled water, candy, and dietary supplements. The lower state sales tax only applies to the statewide rate. Local rates remain in place, including Topeka’s 1.5% rate and Shawnee County’s 1.35% rate.
The state sales tax is a general purpose tax that is collected on the retail sale, rental or lease of tangible personal property or taxable services in Kansas. It is levied on the seller at the time of sale and consists of the state sales tax and the local sales and use tax. The state sales tax is used to finance portions of the state government, including general revenue, conservation, education, and parks/recreation. The local sales and use tax is used to finance a variety of local projects, including public safety, infrastructure, housing, and education.
How to Register for Sales Tax Permit in Kansas?
If you are a business owner who sells taxable goods or services in Kansas, you must register and collect sales tax from your customers. You must also remit the tax to the state and file timely returns. Failure to do so may result in interest and penalty charges. You should also keep careful records of all your sales and remittances.
The registration process can take up to 3-4 weeks, so starting the process at least three or four weeks before you begin making sales in the state is important. Additionally, businesses must account for use tax on taxable purchases made out-of-state and where no sales tax was collected. This is typically reported on a business’s sales tax return. The state of Kansas also assesses penalties and interest on unpaid taxes. If you have questions about filing or payment deadlines, contact the state’s sales tax office for assistance.
