Kansas Food Tax and the Food Sales Tax Refund

Kansas applies a sales tax to food purchases, which is composed of both state and local components. While consumers will notice tax on their grocery receipts, the state-level portion of this tax is undergoing a significant change. Kansas is systematically eliminating its statewide sales tax on food through a multi-year phase-out that reduces the state rate incrementally. This makes it important to understand how grocery bills are calculated and to be aware of other available tax relief programs.

Kansas Food Sales Tax Rates

The state of Kansas is in the final stages of a multi-year plan to eliminate its portion of the sales tax on food. This initiative, enacted in 2022, began by lowering the state food sales tax from 6.5% to 4.0% on January 1, 2023. The reduction continued on January 1, 2024, when the rate dropped to 2.0%. The final step in this “Axe the Food Tax” plan will occur on January 1, 2025, when the state rate becomes 0.0%.

This phase-out specifically targets the state-level sales tax and does not eliminate the tax on food entirely. Local sales taxes imposed by cities and counties remain in effect. This means that even after the state rate reaches zero, consumers will still see a sales tax on their grocery receipts, which will reflect the combined rates of their specific city and county.

Defining Taxable Food Items

The reduced sales tax rate applies to items defined by the state as “food and food ingredients.” This category includes substances sold for ingestion or chewing by humans for their taste or nutritional value. Common examples of qualifying items are bread, milk, eggs, raw meat and poultry, fish, fresh fruits and vegetables, and canned goods. The definition also explicitly includes bottled water, candy, and soft drinks.

Certain items are specifically excluded from the definition of “food and food ingredients” and remain subject to the full state and local sales tax rate. A primary exclusion is “prepared food,” which is defined as food sold in a heated state, food with two or more ingredients mixed by the seller, or food sold with eating utensils provided by the seller. This means that items from a restaurant or a grocery store’s hot deli counter do not qualify for the reduced rate.

Other products that do not qualify for the lower tax rate include alcoholic beverages and tobacco. Dietary supplements are also excluded and are taxed at the standard rate.

Eligibility for the Food Sales Tax Credit

Separate from the sales tax rate reduction, Kansas offers a non-itemized food sales tax credit for certain qualifying individuals. This is a nonrefundable credit, which means it can reduce your Kansas tax liability, but any excess amount is not paid out as a refund. To be eligible, you must have been a Kansas resident for the entire year and meet specific income requirements.

Eligibility is restricted by Federal Adjusted Gross Income (AGI). For the 2024 tax year, your AGI must be $30,615 or less to qualify. The credit is calculated at $125 for each qualified exemption claimed on your federal income tax return, such as for yourself, your spouse, and any qualifying dependents. However, dependents who are 18 years of age or older do not qualify for the credit.

Claiming the Food Sales Tax Credit

Eligible individuals must file a Kansas income tax return, Form K-40, to receive the credit. To apply for the credit, the claimant must fill out Schedule K-40, which is the specific form for the Food Sales Tax Credit. This schedule is submitted along with the main Form K-40 tax return.

Official forms, including the K-40 and Schedule K-40, are made available by the Kansas Department of Revenue on its website. The completed forms must be submitted by the state’s income tax filing deadline to receive the credit for that tax year.