Kansas Governor Laura Kelly said the state’s sales tax on groceries has been completely eliminated as of January 1st.  It was phased out as a result of a bill passed by the Kansas Legislature in 2022.

In a statement Thursday, the Governor said 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, the reduction to zero will save shoppers $13 million per month this year.   The Governor said the average family of four will save $500 per year on groceries.

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.