Introduction: A Break for Shoppers at Last?
For years, Kansans have grappled with the burden of paying sales tax on groceries—a financial strain that affects households across income levels. The familiar line-item charge at grocery checkout registers has sparked decades of debate, advocacy, and legislative effort. Now, with a major shift in 2023, many residents are asking: Is food tax gone in Kansas?
The answer is nuanced but fundamentally promising. As of July 1, 2023, Kansas took a historic step by eliminating the state-level sales tax on groceries, making it one of the few states to fully remove this regressive tax. However, the story doesn’t end at the state level. Local taxes, exemptions, and implementation details mean the financial relief varies across regions. This article dives deep into the reality of the grocery tax repeal in Kansas, exploring how it works, who benefits, and what remains to be addressed.
Understanding the Grocery Sales Tax in Kansas Before 2023
How Much Were Kansans Paying?
Prior to 2023, groceries in Kansas were subject to the state’s standard 6.5% sales tax, one of the few states in the U.S. to tax unprepared food at the state level. When combined with local option taxes (which vary by city and county), the total sales tax on groceries could reach upwards of 8.5% to 9.8% in some areas, such as Wichita or Topeka.
This placed a disproportionate burden on low- and middle-income families, who spend a larger share of their income on food compared to wealthier households. The taxation of groceries is widely regarded by economists as a regressive tax policy—one that hits lower-income groups hardest.
Political and Public Pressure for Change
For over two decades, advocacy groups, lawmakers, and community leaders in Kansas pushed for the elimination of the grocery tax. Groups such as the Kansas Appleseed Center for Law and Justice, the League of Women Voters of Kansas, and AARP launched campaigns highlighting the impact of the tax on seniors, working families, and children.
Polls consistently showed public support for ending the tax. A 2022 survey from the University of Kansas found that 74% of respondents favored full elimination of the sales tax on food, regardless of their political affiliation.
Despite this, past legislative efforts failed due to concerns over revenue loss and competing budget priorities. Lawmakers struggled to develop alternatives to offset the projected hundreds of millions in lost tax revenue.
The 2023 Breakthrough: Ending State Sales Tax on Groceries
Likely Passage and Governor’s Support
In April 2023, a bipartisan coalition in the Kansas Legislature reached a landmark agreement on tax reform, culminating in the passage of House Substitute for Senate Bill 46 (HSB 46). The bill, signed into law by Governor Laura Kelly on April 25, 2023, included a key provision: the elimination of the state’s 6.5% sales tax on groceries.
This move fulfilled a key campaign promise from Governor Kelly and aligned with the economic vision of moderate Republicans who supported the bill. It also included adjustments to income tax brackets and increases to certain tax credits to balance the state’s budget.
Effective Date and Legislative Intent
The repeal took effect July 1, 2023, immediately relieving state-level taxation on eligible food items. The intent behind the law was to provide direct financial relief to Kansas families, reduce economic inequality, and simplify the tax code. Analysts estimated that the average Kansas household would save $400 to $600 annually on grocery expenses.
What “Grocery Tax Gone” Actually Means
While headlines celebrated the end of “food tax” in Kansas, the reality is more complex. Here’s what changed—and what hasn’t.
What Was Eliminated: State Sales Tax on Groceries
As of July 1, 2023:
- The 6.5% state sales tax on essential food items for home consumption is fully repealed.
- Eligible items include fresh produce, meat, dairy, bread, canned goods, and other staples.
- The exemption covers food purchased using SNAP (food stamps) and WIC benefits.
This repeal applies whether items are bought at supermarkets, convenience stores, or farmer’s markets.
What Has Not Been Eliminated: Local Option Taxes
One of the most confusing aspects of the reform is that local governments can still impose sales taxes on groceries. Kansas allows cities and counties to levy “local option” sales taxes (LOST), which are not affected by the state-level repeal.
For example:
| City | State Tax (Pre-2023) | State Tax (Post-2023) | Local Tax | Total Grocery Tax Rate |
|---|---|---|---|---|
| Topeka | 6.5% | 0% | 1.55% | 1.55% |
| Wichita | 6.5% | 0% | 1.95% | 1.95% |
| Lawrence | 6.5% | 0% | 1.075% | 1.075% |
| Overland Park | 6.5% | 0% | 1.075% | 1.075% |
This means that while the state no longer taxes groceries, shoppers in many areas still see a tax on their receipt—just one levied locally, not by the state.
Items Still Subject to Full Sales Tax
Not everything you buy at a grocery store is tax-free. Kansas maintains sales tax on:
- Prepared foods (e.g., rotisserie chicken, deli meals, hot food bars)
- Alcoholic beverages
- Vitamins and supplements (not classified as food)
- Soft drinks and candy (though candy was recently reclassified—more on this below)
- Food sold in restaurants or consumed on-site
It’s important to note that stores often charge sales tax at the register on a mix of taxable and non-taxable items. Consumers may not always see individual breakdowns unless they hand their cashier a basket of only untaxed groceries.
Recent Developments: Candy and Soft Drink Tax Changes
2024 Update: Candy and Soda Still Taxed, But Debate Rages
In 2024, lawmakers considered expanding the grocery tax exemption to include candy and soft drinks, which are currently taxed at both state and local levels. However, they faced a significant legal and definitional hurdle: Kansas statute defines candy and soda as “luxury items,” not essentials.
Opponents argue that removing the tax on sugary products could undermine public health goals, while proponents say these items are common in household shopping baskets and tax fairness should apply.
As of now, soft drinks and candy remain taxed at 6.5% (state) plus any applicable local tax.
The “Snack Tax” Paradox
Interestingly, Kansas does not tax most snack foods like potato chips or pretzels—because they are defined as “food” under current law. However, if they contain chocolate or are sweetened heavily, they may be reclassified as candy. This inconsistency has led to criticism and calls for legislative clarification.
Who Benefits the Most from the Grocery Tax Repeal?
While all Kansas residents benefit from lower grocery prices, some groups see more relief than others.
Low- and Moderate-Income Households
Families spending $600 to $800 per month on groceries now save approximately $39 to $52 per month (6.5% of $600 = $39) at the state level. For a household earning $40,000 annually, this saving can mean the difference between stretching a budget and facing food insecurity.
Charitable organizations like Harvesters–The Community Food Network reported that the tax repeal has reduced pressure on food pantry visits for families trying to supplement groceries.
Seniors on Fixed Incomes
Many retirees rely on fixed incomes from Social Security and pensions. Even a modest monthly saving on food can improve quality of life. AARP Kansas hailed the repeal as a “victory for economic dignity” among older adults.
Working Families with Children
Families with children often face unexpectedly high grocery bills. The repeal helps absorb some of the cost increases due to national inflation, especially during the challenging post-pandemic years.
Some school districts have also noted a drop in student lunch debt, indirectly suggesting that household budgets are less strained.
State Revenue Impact and Long-Term Budget Planning
Estimated Revenue Loss from the Tax Cut
Eliminating the 6.5% tax on groceries cost Kansas an estimated $900 million per year in state revenue. To offset this, the legislature implemented several changes:
- Increased the standard income tax deduction for individuals and joint filers.
- Raised the top income tax rate for high earners slightly.
- Reformed business tax credits to boost compliance and collection efficiency.
Despite initial concerns, state revenue collections in fiscal year 2024 remained strong due to broader economic growth and higher-than-expected income tax receipts.
No New Taxes Needed (So Far)
Governor Kelly emphasized that the relief was achieved without increasing other taxes or cutting essential services. Instead, the state relied on a combination of surplus revenue and structural reforms to maintain a balanced budget—a rare political achievement.
Does This Make Kansas More Competitive Economically?
Aligning with National Trends
As of 2024, only five U.S. states still impose a statewide sales tax on groceries: Mississippi, Alabama, South Dakota, Texas, and Utah (with partial taxes in others). The repeal aligns Kansas with the growing majority of states that exempt groceries.
This shift enhances Kansas’s regional appeal. Relocating families and businesses often weigh cost-of-living factors, and tax-friendly policies can serve as soft incentives for economic growth.
Supporting Local Grocers
Smaller grocery stores and rural markets have reported a 5% to 7% increase in average basket size, likely due to improved consumer confidence and reduced sticker shock at checkout. Some retailers have used the tax change as a marketing tool, advertising “tax-free groceries” to attract customers.
However, some convenience stores with limited grocery selection may not see the same benefits, as they derive more revenue from taxable items like soda and snacks.
Challenges and Criticisms
Local Taxes Dilute Full Relief
While the state tax is gone, local taxing authorities—including school districts—still rely on sales tax revenue. Because food makes up a large share of consumer spending, some cities are reluctant to give up this revenue stream.
Efforts to encourage municipalities to voluntarily eliminate local grocery taxes have seen little success. Lawmakers lack the constitutional authority to force local tax changes, meaning disparities across counties will persist.
Administrative Burden on Retailers
Grocery stores had to reprogram cash registers, update signage, and train employees for the change. The Kansas Department of Revenue provided guidance, but confusion lingered during the first months.
Some stores inadvertently continued charging state sales tax due to outdated software settings. The state allowed a grace period for compliance but encouraged reporting of errors.
Lack of Retroactive Relief
The tax repeal was not retroactive. Kansasans who paid grocery taxes in the first half of 2023 did not receive rebates or refunds. Critics argue that a one-time relief payment might have further boosted consumer spending.
The Road Ahead: Can the Local Grocery Tax Be Eliminated Too?
Grassroots Momentum Builds
Advocacy groups are now targeting local option taxes. Organizations such as the Kansas Coalition for Affordable Groceries are petitioning city councils and county commissions to consider exemptions.
In 2023, the city of Lawrence reduced its local grocery tax rate from 1.275% to 1.075%—a modest change, but one seen as symbolic.
Proposed Statewide Cap on Local Rates
Some lawmakers have introduced bills to cap local sales taxes on groceries, such as limiting them to 1%. However, these face stiff opposition from local officials who argue that it undermines home rule and could reduce funding for schools and public safety.
The Role of State Budget Surpluses
If Kansas continues to enjoy budget surpluses, as projected through 2025, future legislative sessions could allocate funds to reimburse localities for lost tax revenue. This model—used in other states—could make it easier for cities to phase out grocery taxes without harming services.
How to Maximize Your Grocery Savings Today
Even with the tax changes, smart shopping can stretch the savings further.
Check Your Receipt Carefully
Make sure your grocery store is applying the tax exemption correctly. If you bought only qualifying food items and see a 6.5% charge, notify the manager. You can also report violations to the Kansas Department of Revenue via their online complaint form.
Shop in Low-Tax Jurisdictions (If Possible)
Consumers near city borders may consider buying groceries in cities with lower local option taxes. For example, residents of Shawnee might save money by shopping in nearby areas with minimal or no local grocery tax.
Use Tax-Free Programs and Discounts
In addition to the tax repeal, Kansans can benefit from:
- Snap-Ed nutrition programs
- Double Up Food Bucks at farmers markets (match SNAP benefits dollar-for-dollar on produce)
- Senior discounts at major retailers like Dillons and Walmart
Conclusion: A Major Step Forward, But Work Remains
So, is food tax gone in Kansas? The short answer is: The state-level sales tax on groceries is gone—but local taxes remain. As a result, all Kansans now enjoy a reduction in grocery costs, with the most substantial benefits going to lower-income households and those on fixed budgets.
The 2023 repeal marks a significant victory in economic policy and social equity—a rare example of bipartisan cooperation delivering tangible benefits to everyday citizens. However, as long as local grocery taxes persist, the relief will be uneven across the state.
Looking ahead, the momentum from this reform could pave the way for further changes: the elimination of the so-called “snack tax,” the capping of local taxes, or targeted aid for food-insecure communities. For now, Kansans can celebrate a meaningful reduction in food costs—a step toward a more affordable, fair, and resilient future.
Has the grocery tax been completely eliminated in Kansas?
As of the latest update in 2023, the grocery tax has not been completely eliminated in Kansas, but significant progress has been made toward reform. Governor Laura Kelly signed a bill in April 2023 that removed the state-level sales tax—currently 6.5%—on most grocery items, effective from July 1, 2023. This change only applies to unprepared food purchased for home consumption, such as fruits, vegetables, meat, dairy, and bread. It marks a milestone in years of debate over making essential food items more affordable for Kansas families.
However, local option sales taxes—imposed by cities and counties—on groceries remain in effect, meaning consumers may still pay an additional 1% to 2% depending on their location. While the state tax is no longer applied, the full burden of grocery taxation has not been lifted. Advocates of the reform continue to push for the elimination of local grocery taxes in future legislation, but that decision now lies with individual local governments. Therefore, while the state grocery tax is gone, some tax on groceries persists at the local level.
Why did Kansas decide to eliminate the state grocery tax?
Kansas eliminated the state grocery tax as part of a broader tax relief initiative aimed at reducing financial stress on low- and middle-income households. Groceries are considered a basic necessity, and taxing them disproportionately affects those with limited incomes. By removing the 6.5% state sales tax, the government estimated that the average Kansas family would save around $200 annually, offering tangible relief amid rising inflation and food prices.
The decision was also driven by political consensus and public demand. For years, various lawmakers, advocacy groups, and constituents pushed for reform, citing Kansas’s previous status as one of the few states that taxed groceries at the state level. In 2022, voters approved a constitutional amendment allowing future tax relief on food, providing the legal foundation for the legislature to act. The successful passage of the tax repeal demonstrated bipartisan support, reflecting broad agreement on the need for a more equitable tax system.
What types of food are now exempt from the state sales tax in Kansas?
Most unprepared food items intended for home consumption are now exempt from the 6.5% state sales tax in Kansas. This includes essential groceries such as fresh produce, meat, poultry, seafood, dairy products, bread, cereal, canned goods, bottled water, and non-alcoholic beverages. Even seeds and plants grown for food purposes are included in the exemption. The goal is to ensure that staple food items necessary for daily sustenance are no longer taxed at the state level.
However, items that are considered prepared or eligible for on-site consumption still remain taxable. This includes meals from restaurants, fast food, grocery store hot bars, and deli items ready to eat. Additionally, items like candy, dietary supplements, alcohol, and tobacco are not covered by the exemption and continue to be subject to the state sales tax. The distinction ensures that the tax relief is focused on basic nutritional needs rather than luxury or convenience food options.
Does the grocery tax repeal apply to online grocery purchases?
Yes, the repeal of the state sales tax on groceries in Kansas applies to online purchases as long as the items qualify as unprepared food for home consumption. Whether shoppers buy groceries through services like Walmart+, Amazon Fresh, or local grocery delivery platforms, the 6.5% state tax is no longer applied to eligible items. This ensures that Kansans who rely on home delivery—such as seniors, disabled individuals, or busy families—receive the same tax benefits as those shopping in person.
However, delivery fees, service charges, and tips may still be subject to taxation, as they are not considered part of the grocery purchase itself. Additionally, if an online order includes taxable items like prepared meals or alcohol, those portions of the purchase will continue to be taxed. It’s important for consumers to review their receipts to understand which charges are taxable. Overall, the reform treats online and in-store grocery purchases equally under the new tax rules.
Can local governments still tax groceries in Kansas?
Yes, local governments in Kansas retain the authority to impose their own sales taxes on groceries, even after the state-level tax was eliminated. Cities and counties can apply local option sales taxes—typically ranging from 1% to 2%—to the same grocery items that are now exempt from state tax. This means that depending on where someone lives, they may still see sales tax applied at checkout for food purchases.
The decision to continue or eliminate local grocery taxes lies with individual city councils and county commissions. Some communities have expressed interest in following the state’s lead, but as of now, no statewide mandate has removed local food taxes. Advocacy groups are encouraging local officials to phase out these taxes for equity and economic reasons, particularly in lower-income areas where every dollar counts. Until local policies change, the full tax burden on groceries has not been eliminated statewide.
How does the grocery tax change affect retailers in Kansas?
Retailers in Kansas have experienced significant operational adjustments since the elimination of the state grocery tax. They had to update their point-of-sale systems to exclude the 6.5% state tax on qualifying food items by July 1, 2023. While this reduces checkout costs for consumers, it also means grocery stores will collect less tax revenue to remit to the state, potentially affecting cash flow and accounting procedures. The Kansas Department of Revenue provided guidance and support to help businesses implement the changes smoothly.
On the positive side, the tax cut may stimulate consumer spending and increase foot traffic to grocery stores as families adjust their budgets. Retailers could also benefit from enhanced public goodwill associated with the tax relief. However, they must remain vigilant about correctly categorizing items—especially those that are prepared or taxable— to avoid compliance issues. Overall, while administrative changes were necessary, the reform is expected to create a more favorable retail environment in the long term.
What are the potential future developments in Kansas grocery tax policy?
Future developments in Kansas grocery tax policy may include efforts to eliminate local option sales taxes on food. While the state-level tax has been removed, the continued taxation at the municipal and county levels remains a point of contention. Advocacy groups, lawmakers, and community organizations are expected to campaign for local exemptions, especially in areas where the combined tax rate makes groceries unaffordable for vulnerable populations. Some cities may consider ballot initiatives or policy changes in response to public pressure.
Additionally, policymakers may examine the long-term fiscal impact of the repeal to determine whether adjustments are needed in other areas of the state budget. The estimated annual revenue loss to the state is about $96 million, which was offset by recent budget surpluses and other tax reforms. If economic conditions change, future legislatures could revisit the policy, though reversing it would be politically challenging given public support. For now, the focus remains on expanding relief and ensuring equitable access to tax-free groceries across all regions of Kansas.