Kansas: Sales Tax Handbook
What purchases are exempt from the Kansas sales tax?
While the Kansas sales tax of 6.5% applies to most transactions, there are certain items that may be exempt from taxation. This page discusses various sales tax exemptions in Kansas.
Sales Tax Exemptions in Kansas
All construction materials and prescription drugs (including prosthetics and devices used to increase mobility) are considered to be exempt. While groceries are not tax exempt, any food that is used to provide meals for the elderly or homebound is considered to be exempt from taxes. In addition, nonprofit organizations that sell food at a discount in return for community service are also exempt from paying a tax on groceries in the state of Kansas.
Many states have special, lowered sales tax rates for certain types of staple goods - such as groceries, clothing and medicines. Restaurant meals may also have a special sales tax rate. Here are the special category rates for Kansas:
These categories may have some further qualifications before the special rate applies, such as a price cap on clothing items. Groceries are generally defined as "unprepared food", while pre-prepared food may be subject to the restaurant food tax rate.
Candy and soda may be included or excluded from any preferential tax rate depending on whether or not the state considers them to be a "grocery":
Are services, shipping, installation, etc taxable in Kansas?
The taxability of transactions involving services, shipping, and installation of tangible goods can be slightly complicated with various laws applying to slightly different situations. To learn more about how these transactions, and other more complicated situations, are subject to the Kansas sales tax see the Kansas sales taxability FAQ page.
Other tax-exempt items in Kansas
This table lists a number of additional categories of goods and services that are exempt from Kansas' sales tax. For a list that also shows taxable items, see the list of taxable and nontaxable items in Kansas.
|Manufacturing and Machinery|
|Utilities & Fuel||EXEMPT|
|Medical Goods and Services|
|Medical Devices||EXEMPT *|
|General Occasional Sales||EXEMPT *|
|Optional Maintenance Contracts|
|Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts||EXEMPT|
|Janitorial Services||EXEMPT *|
|Software and Digital Products|
|Custom Software - Delivered on Tangible Media||EXEMPT|
|Custom Software - Downloaded||EXEMPT|
* See notes in category taxability page for details
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