Governor Kelly Announces Food Sales Tax Completely Eliminated

TOPEKA - Governor Laura Kelly on Thursday announced that in 2025, Kansans are projected to save $156 million due to the reduction in the state sales tax rate from 2% to zero 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 this year.

“The complete elimination of the state sales tax on food is a win for Kansas,” Governor Laura Kelly said. “By axing the food tax once and for all, the average family of four will save $500 per year on groceries. I’m proud that we’ve put more money back into Kansans’ pockets thanks to this commonsense legislation.”

After working tirelessly to put the state on solid financial footing, in 2021 Governor Kelly called on the Kansas Legislature to eliminate the state sales tax on groceries as soon as possible. The Legislature ultimately passed legislation that gradually reduced the state sales tax on groceries over three years.

In 2023, the state sales tax rate on groceries went down from 6.5% to 4%, saving consumers $187.7 million per year. At the end of 2024, it was projected that shoppers saved nearly $570 million due to the reductions in the state sales tax rate on food and food ingredients during the two years the reduction has been in effect.

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.