What is sales tax in Kansas? In the Sunflower State, where golden prairies meet historic trails, even the tax system has its own charm. Known for its rich history and Midwestern warmth, Kansas weaves its unique identity into every aspect of life, including its sales tax approach.
This guide breaks down everything you need to know about Kansas’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Kansas’s sales tax with confidence and ease.
Sales Tax Nexus in Kansas
When a business creates either a physical or economic nexus, it is required to collect sales tax in Kansas.
Physical Nexus
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Kansas include:
- Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
- Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
- Employees, independent contractors, agents, or other representatives operating on your behalf.
- Affiliate Nexus: You could trigger a physical nexus if you have affiliates, whether they operate online or in-person.
- Presence at Trade Shows: Retailers from other states who sell goods in Kansas at temporary events, such as trade shows, craft fairs, or similar venues, must collect sales tax and get a permanent registration number.
To stay informed about the current criteria for establishing a physical sales tax nexus in Kansas, take a look at the official regulations available right
here!
Economic Nexus
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning July 1, 2021, the threshold for economic nexus in Kansas is $100,000 in gross revenue in the current calendar year’s sales or the previous year.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing economic sales tax nexus. To access a comprehensive list of these rules, please refer to the
governing laws for economic sales tax nexus requirements in Kansas.
Kansas Sales Tax on Goods and Services
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Kansas.
Tangible Products
Almost all goods are taxable in Kansas, including:
- Cosmetics
- Electronics
- Clothing – Clothing is taxable, but certain items are tax-free during the back-to-school holiday in August.
- Furniture – Taxable, but sales or rentals to entities with valid exemption certificates are not subject to sales tax. Be sure to keep these certificates on file to support any non-taxable transactions.
- Jewelry
- Home Goods
The goods that are exempt from sales tax are:
- Groceries – As of January 1, 2025, Kansas has officially eliminated the state sales tax on food and food ingredients. All local sales and use taxes will still apply.
- Prescription Medications – Prescription medicine is exempt from sales tax, except for those used in abortion procedures.
- Medical Devices
- Energy-efficient Appliances – Kansas provides tax exemptions for products that promote energy efficiency.
- Agricultural Supplies: Agribusiness qualifies for exemptions on four specific items: agricultural animals, farm machinery and equipment, propane for agricultural use, and soil erosion prevention materials.
Services
In Kansas, the majority of service-based transactions, such as information services and employment services, are not subject to sales tax.
However, there are specific situations where certain services are taxable. For instance, taxable services are:
- Dry cleaning and pressing services
- Hotel accommodations
- Pest control services
- Washing and waxing of vehicles
- Leases and rentals
- Laundry services (excluding coin-operated machines)
Software as a Service (SaaS)/Digital Products
SaaS is not taxable in the state of Kansas. However, sales of prewritten software are taxable.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are also not taxable.
Shipping/Handling
Shipping and handling charges in the state of Kansas are not taxable if they are separately stated from the item cost on the invoice. For shipments including both exempt and taxable items, the seller must allocate the delivery charge and tax the portion related to taxable items.
Sales Tax Permits and Licenses in Kansas
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Kansas, the next important step is getting your Kansas Seller’s Permit, also known as a sales tax permit.
Seller’s Permit
You can register for a Kansas sales tax permit online at the
CR-16 Business Tax Application Rev. 6-22 or follow our detailed
step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
- Business Identification Information (name, address, phone number, email address)
- Business Entity Structure (sole proprietorship, partnership, corporation, LLC, etc.)
- Federal Employer Identification Number (EIN or FEIN)
- Owner/Partner/Officer Information
- Business Activity Details (description of products or services sold, sales volume, date of the first sale or the expected date to start dates)
- Annual Kansas sales estimation
- Additional questions may focus on your business activities, such as involvement in construction, natural gas, or related industries.
- NAICS code
Registration fee
There is
no fee to register for a sales tax permit.
Renewal
In Kansas, you don’t have to renew your sales tax permit.
Resale Certificate
A resale certificate is a document that allows businesses to buy products without paying sales tax on them as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In Kansas, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
You can fill out the ST-28A Resale Exemption Certificate provided by Kansas after you receive your sales tax permit. You can also fill out the Streamlined Sales and Use Tax Certificate of Exemption if you would like to get
sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
Streamlined Sales Tax (SST)
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Kansas is a party to this program, meaning it follows the uniform rules and definitions established by SST.
Check with the Kansas Revenue Services for the most current information on Kansas’s participation in the Streamlined Sales Tax initiative.
Calculating and Collecting Sales Tax in Kansas
Sales Tax Computation
In Kansas, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Kansas and sells to a customer in Wichita, KS, with a ZIP code of 67203. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
 |
SALES TAX FORMULA |
RATE |
| State: |
Kansas |
6.50% |
| County: |
Sedgwick |
1.00% |
| District: |
Fourth District |
0.00% |
| City: |
Wichita |
0.00% |
| Combined Sales Tax Rate = |
7.50% |
|
Origin-based vs. Destination-Based
When making in-state sales, it is important to determine if you are located in an origin-based state or destination-based state to figure out what rate to charge for sales tax.
Kansas is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a Kansas-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Mississippi to a customer in Aberdeen, Kansas, where you have nexus, you’d apply Aberdeen’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
Filing and Remitting Sales Tax Returns in Kansas
The next step after collection is filing and remitting your Kansas sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually.
- Monthly Returns: If your annual sales or use tax liability exceeds $5,000, you must file monthly returns.
- Quarterly Returns: If your annual tax liability is $5,000 or less, you must file quarterly returns.
- Annual Returns: If your total sales or use tax owed is $1000 or less, you can file an annual return.
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Kansas’s sales tax regulations.
Due Dates
In Kansas, the due date falls on the
25th day of the following month. For instance, sales tax collected in January is due by February 25th for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 25th deadline falls on a holiday or weekend, you’ll have until May 26th, the following business day, to submit.
Filing Sales Tax Returns
To file your sales tax return for Kansas, a few options are available:
- File online through the Kansas Department of Revenue.
- File by mail – You can file and pay using ST-36 Retailers’ Sales Tax Return by mail.
- File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
Timely Filing Discount
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. However, Kansas does not offer a discount.
Sales Tax Holiday
Currently, for 2024-2025, there are no planned sales tax holidays in Kansas.
Kansas Sales Tax Penalties
Like in most states, sales tax is a big part of how Kansas generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties or non-compliance with sales tax regulations in Kansas:
- Failure to File: A penalty of $500 to $10,000 may be imposed, and/or imprisonment for a term ranging from 1 to 6 months.
- Failure to Pay: A penalty of $500 to 10,000 may be imposed, and/or imprisonment for a term ranging from 1 to 6 months.
- Intent to Evade: A penalty of $500 to $10,000 may be imposed, and/or imprisonment for a term ranging from 1 to 6 months.
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