Tag: sales tax

Elimination of Food Sales Tax

The Kansas Legislature passed a bill to eliminate the state sales tax on groceries by 2025. This will not happen immediately, as the tax will gradually decrease over time.

The first sales tax decrease from 6.5% to 4% goes into effect on January 1, 2023. The tax will then drop again from 4% to 2% on January 1, 2024, and will be eliminated entirely on January 1, 2025.

Many regular grocery store items will qualify for this change, but prepared foods do not. Foods that do qualify for the sales tax elimination include basic grocery items like produce, milk, eggs, bread, meat, bakery items, bottled water and soft drinks, candy and dietary supplements

Foods that do not qualify and will still be taxed at the state’s 6.5% rate include prepared foods that are ready to eat or just need reheating, foods sold along with eating utensils provided by the seller, alcoholic drinks and tobacco.

Local taxes on food will also remain in effect, meaning that groceries won’t be totally tax-free if the town, city or county where you shop has a local or county sales tax.

By: Brenda Langdon