What is the Kansas state sales tax rate on food, and when does it drop?

Plain-English summary

Kansas Notice 23-12 explains the phased cut in the state sales tax rate on food and food ingredients, created by 2022 House Bill 2106 (Section 1, now K.S.A. 79-3603d). The state rate steps down as follows:

• 4.0% starting January 1, 2023;
• 2.0% starting January 1, 2024; and
• 0.0% starting January 1, 2025.

The notice specifically flags the drop from 4% to 2% on January 1, 2024, and reminds retailers selling food and food ingredients to update their point-of-sale systems and recordkeeping to charge the new rate.

Importantly, only the state rate changes. The local sales tax rate in effect on food does not change, so cities and counties continue to tax food at their local rates.

For more detail, the notice refers to Department Publication KS-1223, Food Sales Tax Rate Reduction, available on the Department's website.

What this means for you

Grocers and other food retailers

• Charge the reduced 2% state rate on food and food ingredients for sales on and after January 1, 2024 (down from 4% in 2023), plus any applicable local tax.
• Update your point-of-sale system and records so the correct state rate is applied.
• Plan for the state rate to reach 0% on January 1, 2025 -- but keep collecting local tax, which is unaffected.

Shoppers

• The state's share of tax on groceries falls to 2% in 2024 and disappears in 2025, though your city or county sales tax on food still applies.

Common questions

What is the state food sales tax rate now? 4% in 2023, dropping to 2% on January 1, 2024, and 0% on January 1, 2025.

Does local sales tax on food also drop? No -- only the state rate changes; local rates stay the same.

What counts as food? Food and food ingredients, as covered by K.S.A. 79-3603d; see Department Publication KS-1223 for details.

What do retailers need to do? Update point-of-sale systems and records to charge the correct reduced state rate.

Citations and references

• House Bill 2106 (2022), Section 1 -- enacted K.S.A. 79-3603d, the food sales tax rate reduction.
• K.S.A. 79-3603d -- reduces the state sales tax rate on food and food ingredients to 4% (2023), 2% (2024), and 0% (2025); local tax is unchanged.
• Publication KS-1223 -- Kansas Department of Revenue guide to the Food Sales Tax Rate Reduction.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 23-12

Original ruling text

Policy and Research
109 SW 9th Street Phone: 785-368-8222
PO Box 3506 Fax: 785-296-1279
Topeka KS 66601-3506 www.ksrevenue.gov
Mark A. Burghart, Secretary Laura Kelly, Governor

                                       NOTICE 23-12

                           FOOD SALES TAX RATE REDUCTION

                                   (OCTOBER 24, 2023)

   During the 2022 Legislative Session House Bill 2106 was passed and signed into law. New

Section 1 of the Bill, now K.S.A. 79-3603d, provides that, starting on January 1, 2023, the state
sales tax rate on food and food ingredients will be reduced to 4.0%. Starting on January 1, 2024,
the state sales tax rate will be reduced to 2.0%. And, starting on January 1, 2025, the state sales
tax rate will be reduced to 0.0%.

   Retailers making sales of food and food ingredients should note the state sales tax rate

reduction from 4% to 2% that starts January 1, 2024, and make any necessary changes to their
point-of-sale systems and other record keeping to properly charge the new rate. Please note the
local sales tax rate in effect does not change.

  For additional information regarding sales of food and food ingredients, please refer to the

Department Publication KS-1223 Food Sales Tax Rate Reduction, which is available through
the Department's website at: www.ksrevenue.gov.

                                  TAXPAYER ASSISTANCE

  Additional copies of this notice, forms or publications are available from our website,

www.ksrevenue.gov. If you have questions about this Notice, please contact:

                               Taxpayer Assistance Center
                              Kansas Department of Revenue
                              Scott Office Building, 1st Floor
                                     120 SE 10th Ave
                                      P. O. Box 3506
                                 Topeka, KS 66601-3506
                                   Phone: 785-368-8222
                                    Fax: 785-291-3614