Kansas Sales Tax Exemptions / Tax Free Items Kansas: Sales Tax Handbook

Kansas:

What purchases are exempt from the Kansas sales tax?

While the Kansas sales tax of 6.50% 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

In Kansas, certain items may be exempt from the sales tax to all consumers, not just tax-exempt purchasers.

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:


Clothing

  6.5%

Groceries

  6.5%

Prepared Food

  6.5%

Prescription Drugs

  6.5%

OTC Drugs

  6.5%

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":


Is candy taxable in Kansas? Candy IS considered a grocery in Kansas
Is soda taxable in Kansas? Soda IS considered a grocery in Kansas

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.

Category Exemption Status
Manufacturing and Machinery
Machinery EXEMPT
Raw Materials EXEMPT
Utilities & Fuel EXEMPT
Medical Goods and Services
Medical Devices EXEMPT *
Medical Services EXEMPT
Occasional Sales
General Occasional Sales EXEMPT *
Optional Maintenance Contracts
Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts EXEMPT
Services
Janitorial Services EXEMPT *
Transportation Services EXEMPT
Software and Digital Products
Custom Software - Delivered on Tangible Media EXEMPT
Custom Software - Downloaded EXEMPT
Digital Products EXEMPT
Trade-Ins
General Trade-Ins EXEMPT

* See notes in category taxability page for details



  Back to Kansas Sales Tax Handbook Top
** This Document Provided By SalesTaxHandbook **
Source: http://www.salestaxhandbook.com/kansas/sales-tax-exemptions