Kansas levies a statewide retail sales tax on the sale of most goods and some services. The general Kansas sales tax rate is 6.5%. With local sales taxes, rates can be as high as 11.5% in some areas. Understanding Kansas sales tax laws is key for businesses selling products or services in the state and consumers making taxable purchases.
This comprehensive guide provides an overview of Kansas sales tax including the tax rate, what’s taxable, exemptions, how to calculate the tax, reporting requirements, and more. Use it as a resource to learn about sales tax compliance in Kansas.
Kansas Sales Tax Calculator
To calculate Kansas sales tax on a purchase, you take the taxable sales price and multiply it by the combined state and local tax rate for that jurisdiction. You can also use online Kansas sales tax calculator to calculate Kansas sales tax.
Kansas Sales Tax Calculator
Kansas Sales Tax Calculator
For example, if you buy a $500 appliance in Wichita (sales tax rate 8.75%), the math is:
- Taxable purchase price: $500
- Tax rate: 8.75% (0.0875)
- Sales tax due: $500 x 0.0875 = $43.75
The total cost with sales tax is $500 + $43.75 = $543.75
Online sellers will generally calculate the sales tax at checkout based on your delivery address.
Kansas Sales Tax Rate
The statewide sales tax rate in Kansas is 6.5%. This rate is made up of:
- 4.0% state sales tax
- 1.5% state compensating use tax
- 1.0% local sales tax
On top of the 6.5% combined rate, cities and counties in Kansas can impose local sales taxes up to 5.0%. There is also a 0.5% or 1% countywide retailers’ sales tax in many areas.
In total, sales tax rates can range from 6.5% to 11.5% depending on the jurisdiction. Some major cities like Topeka and Wichita have rates over 9%.
To find the full sales tax rate for a location, you need to add the state, county, and city rates. The Kansas Department of Revenue provides a sales tax lookup tool to find the combined rate based on address. Rates are identified using a jurisdiction code.
What’s Taxable in Kansas?
Kansas broadly taxes retail sales of tangible personal property and certain services. Some major taxable categories include:
- Clothing, furniture, electronics, household goods
- Food and drinks sold by restaurants, bars, concessions
- Hotel rooms, short term rentals, other lodging
- Admission tickets to entertainment events
- Digital products like streaming services, ebooks
- Motor vehicles and automotive repairs/parts
- Telecommunications and satellite TV services
- Cleaning, pest control, and basic repair services
There are exemptions provided for certain necessities like groceries and prescription medicine. See the Kansas Department of Revenue’s guide to taxable sales for more details on what’s taxed.
Exemptions from Kansas Sales Tax
Some buyers and products are exempt from paying sales tax in Kansas:
Exempt Buyers
- Federal government agencies
- Kansas state and local government entities
- Public and private schools
- Nonprofit organizations with IRS 501(c)(3) status
To make tax exempt purchases, these entities must apply for Kansas sales tax exemption certificates.
Exempt Products
- Unprepared food and food ingredients
- Prescription drugs and insulin
- Motor fuel
- Farm machinery and equipment
- Manufacturing machinery and raw materials
- Goods purchased for resale or lease
See the full list of sales tax exemptions defined in Kansas tax regulations.
Registering for a Kansas Sales Tax Permit
Kansas businesses that sell taxable goods or services must register for a sales tax permit. Registration is done online through the Kansas Customer Service Center.
After registering, sellers will receive a sales tax certificate with their assigned Kansas registration number. This certificate must be prominently displayed at the place of business.
There is no fee to obtain a Kansas sales tax permit. Registration must be completed before making any retail sales.
How to File Kansas Sales Tax Returns
Kansas sales tax returns are due on a monthly, quarterly, or annual basis depending on the seller’s sales volume. Reporting periods are assigned after registration.
Returns can be filed online through the Kansas Customer Service Center. A schedule detailing total sales, taxable sales, exemptions, and sales tax due must be completed.
Filing frequency:
- Monthly returns: due the 25th of the following month
- Quarterly returns: due the 25th of the month after the end of the quarter
- Annual returns: due January 25th
In addition to reporting tax collected, businesses must also account for use tax on taxable purchases where sales tax was not paid.
Remitting Kansas Sales Tax
Along with the return, businesses must submit sales tax payments electronically or by check by the filing deadline. Kansas offers several payment options:
- Online through the Customer Service Center
- Electronic funds withdrawal when filing online
- Credit/debit card (fees apply)
- Check or money order by mail
Kansas assesses penalties for late payments or failure to pay taxes due on a return. Interest also applies on unpaid amounts.
Kansas Use Tax
Kansas imposes a 6.5% use tax along with the sales tax. Use tax is essentially equivalent to the sales tax but applies when purchases are made out-of-state and sales tax was not collected.
Common examples include:
- Online orders from out-of-state sellers
- Catalog or phone orders from national retailers
- Purchasing items tax-free in another state and using in Kansas
For individuals, use tax is typically reported and paid on the Kansas income tax return. Businesses must account for use tax owed on their sales tax filings when purchases are for business use.
Local Sales Taxes in Kansas
There are several types of local sales taxes that cities and counties in Kansas can impose on top of the state sales tax:
- City sales tax: Cities can levy a local sales tax up to 2% with voter approval. Rates range from 0-2%.
- County sales tax: Counties may impose a sales tax up to 1% with voter approval.
- Special countywide tax: Additional 0.5-1% sales tax allowed in some counties to fund designated projects.
- Metropolitan transit authority tax: Areas with transit authorities can levy up to 1% extra sales tax.
Local sales taxes are administered and collected by the Kansas Department of Revenue, then distributed back to the local governments. Returns are filed under the jurisdiction code encompassing all applicable state and local taxes for an area.
Sales Tax Administration in Kansas
The Kansas Department of Revenue (KDOR) oversees the administration of state and local sales taxes. KDOR is responsible for:
- Publishing sales tax guidance and regulations
- Processing sales tax permit registrations
- Receiving and processing sales tax returns
- Collecting sales tax payments and distributing local taxes
- Auditing taxpayers and enforcing compliance
The Department provides a number of resources for taxpayers:
- KDOR website with sales tax guides
- Customer service center for tax questions
- Online seminars on Kansas taxes
- Taxpayer assistance for audit support
In addition to collecting tax, KDOR takes enforcement actions against non-compliant businesses in Kansas. This can include tax assessments, penalties, interest charges, liens, and seizure of business property in severe cases.
Key Kansas Sales Tax Updates
Some recent and upcoming changes related to Kansas sales tax:
- Multiple attempts to lower the state sales tax rate have failed to pass the legislature.
- A 2018 Supreme Court ruling allowed states to impose sales tax on more online purchases.
- Several counties have recently proposed new countywide sales taxes on upcoming ballots.
- A reduction in the statewide food sales tax rate from 6.5% to 4% is being discussed.
- Legislation exempting feminine hygiene products passed in 2022.
Taxpayers should monitor the KDOR website for notices about legal changes affecting Kansas sales tax. Sign up for email newsletters to stay current.
Sales Tax Resources for Kansas
- KDOR Sales Tax Overview – Details on Kansas sales tax
- Taxable Sales – List of taxable goods and services
- Exemptions – Rules on exemptions
- Sales Tax Publications – Brochures on sales tax topics
- Permit Registration – Applying for a Kansas sales tax permit
- Sales Tax Forms – Returns, certificates, and more
Conclusion
Following proper sales tax compliance practices is crucial for Kansas businesses and consumers. Use this guide as an overview of key requirements, exemptions, and filing details. Check the Kansas Department of Revenue website regularly for the latest updates. Being informed on Kansas tax rules can help avoid non-compliance penalties and other sales tax headaches.
