TOPEKA — On Jan. 1, 2025, Kansans will no longer pay state sales tax on groceries. The current state tax of 2% will be reduced to zero.
A 2022 law set out a three-year plan to reduce the state’s sales tax on groceries, which was at 6.5% in 2022. In 2023, it was reduced to 4%, and in 2024 to 2%. When the bill was introduced, Kansas had one of the highest food sales taxes, second to Mississippi with 7%.
City and county grocery taxes will still be added.
Iola’s is 1%, and Allen County’s is 1.2%.
Sales taxes range from 0%, in 11 counties, to a high of 2.25% in Sherman County. Most counties have between 0.01% to 2% grocery taxes.
The average monthly household cost for groceries is about $500 per month, so it’s estimated that the average Sherman County household would pay about $11 per month on grocery tax. In 2022, they would have paid around $34 per month.
Nancy Hamilton, a health psychologist, says the burden of the food sales tax — and other regressive taxes — fall the heaviest on low-income communities.
“Eliminating sales tax on food should have a greater benefit for those with the least because they spend the greatest proportion of their income on necessities like food,” Hamilton said.
The Kansas Health Institute found that not only did the tax harm low-income Kansans financially, but also in terms of health.
“Taxes are a financial driver within the overall food system that impact household purchasing power and behavior, community health and nutrition,” they said.
The 2022 law was passed with bipartisan support, unanimously in the Senate and with an overwhelming majority in the House. Gov. Laura Kelly said that the tax cut is a “win for the Kansas people,” after hearing Kansans’ concerns with inflation on food.
When the law was passed, food prices had increased by 9.9%. In 2023, they increased by 5.8%.
“You take a 6.5% reduction in the cost of food for people — that makes a huge difference to many, many people,” Kelly said. “Now I think we calculated that the average family of four would save over $500 a year, just on sales tax elimination.”
