Kansas Sales Tax Guide for Businesses (Updated 2026)

Key Takeaways (Updated 2026)

• Elimination of State Sales Tax on Food (Effective January 1, 2025): Kansas has fully phased out the state portion of the sales tax on groceries and food ingredients. As of January 1, 2025, qualifying food items are taxed at 0% at the state level. However, city and county local sales taxes still apply.
• Nexus Rules Remain Firm (Economic & Physical): Economic nexus in Kansas still requires remote and out-of-state sellers to register and collect tax once $100,000 in Kansas sales is exceeded in the current or prior calendar year. Physical presence (e.g., office, employees, inventory) continues to create nexus as well.
• Marketplace Facilitator Requirements Are Active: Kansas requires marketplace facilitators (Amazon, eBay, Etsy, Walmart, etc.) to collect and remit sales/use tax on behalf of sellers once the $100,000 threshold is met.
• Kansas Is a Destination-Based State: As a destination-based sourcing state, sales tax is based on the delivery location—not the seller’s location. This makes accurate local rate tracking critical.
• Local Sales Tax Rates Change Quarterly: Kansas Department of Revenue updates city, county, and special jurisdiction rates quarterly. Businesses must monitor Publication 1700 and rate notices to remain compliant.

Do You Need to Collect and Remit Sales Tax in Kansas? 

If your business has nexus in Kansas, you are required to collect and remit sales tax on:

• Retail sales of tangible personal property
• Rentals and leases of tangible personal property
• Certain taxable services (including repair, installation, and maintenance of tangible property)
• Admissions to entertainment, amusement, and recreational venues

Kansas also imposes a compensating use tax on goods purchased without tax and brought into Kansas for use, storage, or consumption. If you are an out-of-state seller with nexus, you may be responsible for collecting compensating use tax instead of retailers’ sales tax.

If you’re unsure whether your business has nexus or which tax type applies, SalesTaxSolutions.US can perform a nexus review and rate analysis tailored to your operations.

Common Kansas Sales Tax Exemptions

Even if your business has nexus in Kansas (triggering collection responsibilities), not all sales are taxable. Kansas law specifically exempts certain customers, items, and uses or transactions from sales tax, meaning tax should not be collected on those sales if the statutory requirements are met and proper documentation is obtained.

For many exemptions—especially those involving exempt entities, resale, or special use exemptions—proper documentation (exemption certificates) is required. Kansas law requires sellers to retain exemption certificates in their records to substantiate why tax was not collected.

New Grocery Sales Tax Law (Effective January 1, 2025)

A phased reduction of the state sales tax on food and food ingredients culminated in a 0% state tax on qualifying groceries effective January 1, 2025. This change eliminates the state portion of the tax on food and food ingredients for human consumption. This means that businesses who primarily sell food and food ingredients may not need to collect Kansas sales tax.

However, local sales and use taxes (city, county, special jurisdictions) may still apply on groceries. Also, prepared foods (such as restaurant meals or deli hot foods) continue to be fully taxable.

While some food retailers may see reduced state-level liability, compliance complexity remains due to local rate application and product classification.

Do You Have Sales Tax Nexus in Kansas? 

Nexus refers to the connection a business has with a state that triggers a sales tax obligation. Like most states, Kansas recognizes both physical and economic nexus.

Physical Sales Tax Nexus in Kansas 

You may have physical nexus if you:

• Operate a storefront, warehouse, or distribution facility in Kansas.
• Maintain inventory or office space in the state.
• Employ people (employees or independent contractors) in Kansas.
• Hold stock or property in Kansas for sale.

Economic Sales Tax Nexus in Kansas 

Kansas established economic nexus following the Wayfair decision. A business has economic nexus if it:

• Has $100,000 or more in cumulative gross sales to Kansas customers in the current or immediately preceding calendar year.

There is no transaction threshold—only the dollar threshold applies. This also applies to both direct sellers and, generally, marketplace facilitators.

Are Marketplace Facilitators Required to Collect and Remit Sales Tax in Kansas? 

Yes.

Marketplace facilitators must collect and remit sales tax (or compensating use tax) on behalf of third-party sellers once they exceed the economic nexus threshold in Kansas. The obligation applies whether the facilitator is physically located in Kansas or outside the state.

Examples of marketplace facilitators include broadly known platforms such as:

• Amazon    
• eBay    
• Etsy
• Shopify Shop App 
• Walmart (online)    

If you sell exclusively through marketplaces, you may not need to collect tax yourself. But you are still responsible for confirming that the facilitator is properly registered and collecting on your behalf.

Filing Sales Tax in Kansas 

Before filing sales and use taxes, you must register with the Kansas Department of Revenue and obtain a sales tax permit. Registration options include:

• Online Registration through Kansas DOR’s online services.
• Submit a paper form, Kansas Business Tax Application (CR-16).
• Through Streamlined Sales Tax for multi-state registrations.

Once you have registered with Kansas and received a sales tax certificate, you can begin collecting sales tax at the correct rates. Kansas local sales tax rates (city, county, and special districts) change periodically, and the KDOR publishes updates quarterly. Businesses should check the latest Publication 1700 and related rate tables to ensure correct local rate application.

When it comes time to file returns, you are required to file online via the Kansas Customer Service Center, regardless of filing frequency.

When Are Sales Tax Returns Due in Kansas? 

Filing frequency (monthly, quarterly, or annually) is assigned when you register and can be updated upon review. Tax obligations and due dates are determined by your total tax liability and filing history. See the graphic below for a breakdown of when returns are due in Kansas, and how they correspond with annual tax liability.