Governor Laura Kelly says that Kansans are projected to save $156 million due to the reduction in the state sales tax rate from 2% to 0 and the “Axe The Food Tax” legislation she signed in 2022. According to projections from the Kansas Department of Revenue, reducing the state sales tax on groceries from 2% to zero will save shoppers $13 million per month in 2025.
The state sales tax reduction applies to food, food ingredients, and certain prepared foods. When looking at a receipt, shoppers will see two tax rates, one for qualifying purchases and one for all other items. The total elimination of the state sales tax on qualifying items went into effect on Jan. 1, 2025.