Kansas Sales Tax

There are many rules and regulations concerning when and how much state sales tax should be collected in Kansas. This can often make it difficult to determine whether to collect sales tax and if so, how much. Understanding how to determine if you have nexus in the state is the first step in this process, followed by identifying products on which sales tax must be collected and determining the applicable rate.

Kansas Sales Tax Rates

The state of Kansas has a base sales tax rate set by the state, but local jurisdictions including cities, counties, and other municipalities can add their own on top of that. The base rate in Kansas is 6.5%, those local sales taxes can increase the total sales tax rate to a higher amount.

This leads to a substantial variation in the actual rate you will need to collect. An updated list of state and local sales/use tax rates can be referenced on the Kansas Department of Revenue website, or you can look up a specific local sales tax rate using our sales tax calculator.

In Kansas, the state sales tax rate at which you collect is determined by the destination of the product if it’s being shipped or delivered. If you have a physical store, and a customer comes in, purchases a product, and takes it with them on the spot, they will pay the sales tax rate of the store’s location. However, if the customer purchases the item in person and then asks for it to be delivered, the applicable sales tax policy will be that of the delivery destination.

The same is true of items purchased online or over the phone that are shipped directly to the customer. In these instances, the sales tax rate that must be applied is that of the destination of the product, with no consideration of where it originates.

Tax Sourcing

Kansas is a Destination-Based Sourcing state.

• General Rule: The tax rate is determined by the location where the customer takes possession of the item or where it is delivered.
• Special Districts: Because Kansas has many “Community Improvement Districts” (CIDs) and “Transportation Development Districts” (TDDs), you must use a precise address-matching tool to ensure you are capturing these micro-local taxes.

Kansas Nexus

When determining whether to collect sales tax in Kansas, you need to consider whether you have sales tax nexus in the state and whether the item being sold is subject to sales tax. A Kansas seller may have nexus due to a physical presence, and remote sellers who reach a certain threshold will have economic nexus.

Physical Nexus

You have physical nexus if you have:

• a physical office or place of business anywhere in Kansas
• store goods in a warehouse in the state
• retailers who sell your goods at craft or trade shows in Kansas
• an employee present in the state on a regular basis

Economic Nexus

Kansas implemented an economic nexus law for out-of-state sellers in May 2021. If you have gross sales of $100,000 or higher in the current or previous calendar year, then your business qualifies as having economic nexus threshold. Individual retailers or marketplace facilitators that make this much in sales to Kansas residents must collect and remit sales tax.

Marketplace Facilitators

Additionally, marketplace facilitators must collect and remit tax on behalf of their third-party sellers. For out-of-state marketplace facilitators, the economic threshold is the same as above.

What is Taxable in Kansas

Tangible Goods

Most physical items are taxable at the 6.5% state rate plus local taxes. Kansas retailers selling these tangible goods must collect sales tax on their purchase. There are a few exceptions as noted in a section below.

Services

Kansas does not generally levy sales tax on many services, but it taxes several “enumerated” services. These taxable services include:

• Labor Services: Installing, applying, repairing, or maintaining tangible personal property (e.g., car repairs or appliance installation).
• Admissions: Tickets to events, amusements, and clubs.

Shipping and Handling

As of July 1, 2023, delivery and shipping charges are exempt if they are separately stated on the invoice. If combined with the sales price, the entire amount is taxable.

Digital Goods and Services

• Digital Products: E-books, digital music, and streamed movies are taxable in Kansas as tangible personal property.
• SaaS: Software as a Service is exempt in Kansas as of 2026 guidance (Publication KS-1510), provided the user only accesses the software remotely and no “canned” software is downloaded to a local device.

Exemptions

• Groceries – Groceries are exempt from the general state sales tax, but certain local rates may apply.
• Prescription Drug and Food Stamp Purchases – Prescription drugs and insulin, along with food stamp purchases and most medical equipment, are tax-exempt. Exemptions are also available based on a special status of the buyer or a service they provide. Under the latter provision, food sold to companies that provide meals to elderly or homebound people, or products sold to community organizations for the improvement of low-income housing are exempt from sales tax. Most of these types of exemptions require the use of an exemption certificate.
• Agricultural Purchases – Other items may be exempt from sales tax based on their intended use. An example of this is agricultural animals being used for agriculture, food production for humans, or in the production of offspring for one of those uses. Goods that are depleted or consumed during certain processes, particularly agricultural ones, are also exempt, and this list can include things like pesticides or fuel for agricultural equipment.

Sales Tax Holidays

Kansas does not have any statewide sales tax holidays scheduled for 2026.

Registration and Filing

Once you’ve determined that you must collect sales tax in Kansas, you need to register for a Kansas business tax permit. You can do so by visiting the Kansas Department of Revenue website, filling out a paper form and mailing it in. Because processing your request and issuing the permit can take three to four weeks, it’s recommended that you begin the registration process at least that long before you begin making sales in the state.

Filing Frequencies

Of course, when collecting sales tax, you must also file a Kansas sales tax return. The state will assign you a filing frequency, which depends on the total amount of tax you expect to collect annually. These ranges include:

• Annual – $80 or less per year collected
• Quarterly – Between $80 and $3,200 per year collected
• Monthly – Between $3,200.01 and $32,000 per year collected
• Pre-Paid Monthly – More than $32,000 per year collected

If you exceed the $32,000 total for the year, you’ll receive a letter from the state Department of Revenue requiring you to file with prepaid monthly status, which means you must prepay either half the expected total for the month or the total for the first 15 days by the 25th of the same month. You should only file with this status if you receive a letter from the state explicitly instructing you to do so.

Deadlines

In Kansas, sales tax returns are due on the 25th day of the month in which they are due. How often you must file depends on your frequency. Below are tables that should be helpful to a business owner for determining when a filing is due.

Quarterly: The following filing deadlines will apply for those with tax liability between $80 and $3,200 per year.

Period	Due Date
January – March (Q1)	April 25
April – June (Q2)	July 25
July – September (Q3)	October 25
October – December (Q4)	January 25

Monthly: For those with tax liability of more than $3,200 per month, the following filing deadlines will apply.

Period	Due Date
January	February 25
February	March 25
March	April 25
April	May 25
May	June 25
June	July 25
July	August 25
August	September 25
September	October 25
October	November 25
November	December 25
December	January 25

Annual: For those businesses with liability less than $80 per year, you will file annually by January 25.

Penalties and Interest

The state will impose a penalty of 1% of the total tax due for each month that you’re behind in filing or paying, up to a maximum of 24%. However, there may be more extreme penalties for ongoing or repeat offenses, up to and including possible criminal charges for fraud. Kansas requires that you file zero returns for periods in which you collect no sales tax in the state when you hold a Kansas sales tax permit. You can file your tax return online through the Kansas Department of Revenue website, or you can mail the completed form, and the online filing system also allows you to make your payments at the same time.

Resources

• Kansas Sales Tax and Compensating Use Tax
• Kansas Department of Revenue website
• Kansas Local Sales Tax Information

Kansas Sales Tax Software

There is much to consider when determining your sales tax liability in Kansas. With so many factors to take into account concerning when and how much sales tax you need to collect on your sales in the state, it can be helpful to have a tool designed to guide you through the process. TaxTools is just such a system, and it offers a variety of resources designed to help you keep track of filing deadlines, local tax rates, and tax holidays. It also stays up to date on any changes to tax laws in the state, so you don’t have to.

TaxTools also integrates seamlessly with many e-commerce platforms, and provides you with up-to-date sales data and payment information to ensure your records are accurate and payments are made on time. This is a particularly valuable tool if you sell in multiple states, as it can track the applicable sales tax data for each state accurately and efficiently.

If you’re ready to begin streamlining your sales and tax collection processes, click here to learn more or to sign up for a free trial of TaxTools today.

Last updated August 2026