Running a business in Kansas, whether you’re serving coffee in Lawrence, managing a boutique in Overland Park, or handling retail in Topeka, means more than just great customer service. It also means keeping up with your sales tax obligations. Kansas has its own set of state and local tax rates that can vary by city, and those differences can impact your pricing, reporting, and compliance.
From the steady flow of shoppers in Kansas City, KS, to the thriving local economies across the state, sales tax plays a key role in funding the infrastructure that supports your business. But with multiple jurisdictions, state, county, and city, it’s important to know exactly what rate applies where you operate or sell.
What is the Kansas sales tax rate?
Kansas has a statewide base sales tax rate of 6.5%, but local jurisdictions such as cities and counties can add their own taxes on top of that. This means the total rate your business collects from customers can range from about 7.5% to over 11%, depending on location.
Here’s a look at some common examples across major business hubs in the state:
- Kansas City, KS – Ranges between 9.13% and 11.13%, depending on special taxing districts within Wyandotte County
- Lawrence – Total rate around 9.35% (state 6.5% + county 1.25% + city 1.6%)
- Overland Park – Combined rate of approximately 9.35% (state 6.5% + county 1.475% + city 1.38%)
- Topeka – Combined rate of roughly 9.35% (state 6.5% + county 1.35% + city 1.5%)
Local add-ons like transportation or redevelopment district taxes can make even neighboring areas differ in rate. For that reason, it’s always smart for business owners to verify the correct rate based on their store address or delivery location. You can use the Kansas Sales and Use Tax Rate Locator to look up rates by address or by zip code.
How to calculate sales tax in Kansas?
Once you know your local rate, calculating sales tax in Kansas is straightforward, but it’s important to do it correctly to stay compliant. Sales tax in Kansas applies to most retail sales of tangible goods, certain services, and restaurant meals.
To calculate sales tax, multiply the taxable sale amount by the combined sales tax rate (state + county + city). Here’s a simple formula:
Sales tax = Sale amount × (combined tax rate ÷ 100)
A good example is if you operate a coffee shop in Topeka and sell a $20 item with a local rate of 9.35%, you’d calculate:
$20 × 0.0935 = $1.87 in sales tax
That means your total charge to the customer would be $21.87.
If you operate in multiple locations, one store in Overland Park and another in Lawrence, you’ll want to collect at each location’s rate. Even small differences can add up over time, so always use the correct rate for the point of sale (or the delivery address for shipped items).
Use our sales tax calculator
Many Kansas businesses, especially restaurants, salons, and boutique retailers, prefer to display pricing that already includes sales tax. You’ve probably seen this before on menus or signs that read “Sales Tax Included.” It creates a cleaner, simpler customer experience, and keeps prices looking like easy, full numbers.
However, when sales tax is included in your displayed prices, it can be tricky to separate the pre-tax amount for reporting. That’s where our Reverse Sales Tax Calculator comes in.
This free tool helps you determine the pre-tax amount from a total price that already includes sales tax. So, if your listed price is $20 in Topeka, you can quickly find out that $18.13 was the sale amount and $1.87 was the sales tax.
What is subject to sales tax in Kansas?
If you own or operate a business in Kansas, understanding what’s taxable is just as important as knowing your rate. The Kansas Department of Revenue (KDOR) generally applies sales tax to three main types of transactions. If your business falls under any of these categories, you’re required to collect and remit sales tax on behalf of the state.
- Sales, Rentals, or Leases of Tangible Personal Property
Most Kansas businesses fall into this category. Sales tax applies to the retail sale, rental, or lease of tangible personal property, which includes just about anything you can see, touch, or move, such as merchandise, furniture, clothing, or electronics. This category also includes the sale or furnishing of utilities (like electricity, gas, or water) within the state.
Example:
A home goods store in Lawrence must collect sales tax on all retail sales of décor and furniture. Similarly, a business leasing out construction equipment in Topeka must collect tax on rental charges. - Labor Services on Tangible Personal Property
Kansas also taxes charges for labor services that involve installing, applying, repairing, servicing, altering, or maintaining tangible personal property. That means if your business provides repair or installation work, the service itself is taxable, not just the parts or materials used.
Example:
An auto repair shop in Overland Park must charge sales tax on both the parts and labor when fixing a customer’s car. The same applies to a contractor installing new appliances or a jeweler resizing a ring. - Admissions to Amusement, Entertainment, or Recreation Venues
Sales tax also applies to admissions that include places providing amusement, entertainment, or recreation services. Think concerts, sporting events, movie theaters, theme parks, or even local fairs.
Example:
A Topeka theater or a local Kansas City fairground must charge sales tax on the cost of each admission ticket.
If your business provides goods or services that fit into any of these three areas, you’re required to collect sales tax from your customers and remit it to the KDOR. Each taxable activity is defined in Kansas statutes (K.S.A.) or regulations (K.A.R.), which provide detailed guidance on how the rules apply to specific industries. Visit the Kansas Department of Revenue website for additional details on taxable sales.
Are services subject to sales tax in Kansas?
In Kansas, many services are taxable, especially those that involve repairing, servicing, or maintaining tangible personal property. If your work restores or maintains a physical item, you’re required to collect sales tax on both parts and labor.
Here are some common taxable services in Kansas:
- Appliance repair or service – Fixing or maintaining household appliances.
- Car repair or service – Includes labor and parts for vehicle repairs or maintenance.
- Dry cleaning and laundry services – Subject to sales tax and the Dry Cleaning Environmental Surcharge.
- Maintenance agreements – Service plans or contracts that cover future repair work.
- Pet grooming – Bathing, trimming, or other grooming services for animals.
- Tool sharpening – Sharpening saws, knives, or similar tools.
- Warranties – Extended or optional warranties sold separately are taxable.
- Car washing, waxing, or detailing – Auto cleaning services are fully taxable.
If your business offers any of these, you must collect and remit Kansas sales tax. The state taxes a wide range of service industries, so it’s always best to verify your specific activities with the Kansas Department of Revenue to stay compliant.
What is exempt from sales tax in Kansas?
Not every product sold in Kansas is subject to sales tax. The state provides exemptions for certain goods that are considered essential or that serve specific public purposes. Knowing which items are exempt can help your business avoid over-collecting tax and keep your pricing accurate. Some of the most common sales tax-exempt items in Kansas include prescription drugs, medical equipment, utilities for residential use, agricultural products, manufacturing equipment, and resale purchases.
To take advantage of these exemptions, your business must keep proper exemption certificates on file for every qualifying sale. The Kansas Department of Revenue provides various forms depending on the type of exemption. These should always be retained for your records in case of an audit.
Kansas food sales tax
Food is one of the most talked-about topics when it comes to sales tax in Kansas, and for good reason. The state recently changed how it taxes groceries, making it easier for Kansas residents to afford everyday essentials.
As of 2025, most grocery food items are exempt from the Kansas state sales tax. This includes unprepared foods meant for home consumption, like fruits, vegetables, meats, dairy products, and bread sold at grocery stores or supermarkets.
However, it’s important to note that local sales taxes may still apply, depending on the city or county. So while the state portion is 0%, customers could still see a small local tax rate at checkout.
Restaurant sales are treated differently. All restaurant meals, catered food, and beverages are fully taxable at the combined local rate. Whether customers dine in, carry out, or order delivery, the total sale is subject to the full Kansas sales tax rate for that location.
So while grocery stores enjoy a reduced or zero state rate, restaurants, cafes, bakeries, and bars must continue to collect the standard rate, which can be anywhere from 7.5% to over 10%, depending on city and county taxes.
Managing sales tax in Kansas can be complicated, especially when you’re juggling different rates for food, services, and locations. That’s where DAVO by Avalara can simplify your life.
DAVO works with your point-of-sale (POS) system to automatically:
- Set aside the sales tax you collect each day so you’re never caught short at filing time.
- File and pay your Kansas sales tax on your behalf, no spreadsheets, no stress.
- Provide daily, so you can track exactly what’s been collected and remitted.
For Kansas restaurants, coffee shops, and retail stores, DAVO removes the burden of figuring out and paying sales tax. You can stay focused on running your business while DAVO, ensuring you never miss a due date or underpay the state.
Make your sales tax less taxing with DAVO.
What services are exempt from sales tax in Kansas?
While Kansas taxes many types of services, not all are subject to sales tax. Certain professional, personal, and maintenance services are exempt under Kansas law. If your business falls into one of these categories, you generally don’t need to collect sales tax on your service charges.
Common non-taxable services in Kansas include:
- Professional services – Accounting, legal, architectural, and engineering work.
- Consulting services – Business or management consulting that doesn’t involve selling tangible goods.
- Personal care services – Hair styling and similar grooming services (but not pet grooming).
- Child care – Licensed daycare and babysitting services.
- Home and property services – Cleaning, mowing, snow removal, and trash hauling.
- Specialty services – Chimney sweeping, excavating, towing, and moving.
- Media and broadcasting – Radio, TV, and other broadcast services.
If your business provides one of these exempt services, you don’t charge sales tax, but you may still pay sales tax on items or supplies you purchase to perform the work. For example, a cleaning company won’t tax its customers but will pay tax on its cleaning products.
How to manage tax-exempt sales in Kansas?
In Kansas, all retail sales are considered taxable unless a valid exemption applies. That means as a retailer, it’s your responsibility to collect the correct amount of sales tax on every transaction, unless the buyer provides proper documentation showing that the sale is exempt.
If sales tax isn’t charged, your records must clearly show why. Each sale should either:
- Include the total amount of sales tax collected, or
- Be supported by a Kansas exemption certificate or Form PR-78SSTA (Streamlined Sales Tax Agreement Certificate of Exemption).
You should always verify the identity of the buyer providing an exemption certificate and ensure all fields are filled out. Kansas law allows you to accept certificates at the time of sale or within 90 days after the sale, but the sooner you collect them, the better.
If a customer claims an exemption after the fact and deducts the tax from the invoice, you must still obtain a valid certificate. If you can’t, the sale is considered taxable, and you’re liable for the tax owed.
For recurring exempt sales to the same customer, Kansas allows blanket exemption certificates, which stay valid as long as you maintain an ongoing business relationship (no more than 12 months between transactions). Some certificates, like those for nonprofit entities, have expiration dates, so be sure to track those as well.
Keep all exemption certificates and sales tax records for at least three years, in addition to your current year’s records. These documents stay with your business. You don’t send them to the Kansas Department of Revenue with your return, but they must be available if requested during an audit. For more details on how to manage tax-exempt sales, visit KDOR’s website on exemption certificates.
How to register for a Kansas sales tax permit?
Before you can start collecting sales tax in Kansas, your business must first register for a Kansas sales tax permit, sometimes called a seller’s permit or sales tax license. This registration gives you legal authorization to collect and remit sales tax to the Kansas Department of Revenue.
Who Needs to Register
You must register if your business:
- Sells taxable goods or services in Kansas
- Operates a restaurant, retail store, or service business that collects sales tax
- Has employees, inventory, or a physical location in Kansas
- Makes online or remote sales to Kansas customers that exceed $100,000 in annual sales (economic nexus threshold)
How to Apply
You can register online through the Kansas Department of Revenue Customer Service Center. The process typically takes about 15–20 minutes and requires:
- Your business name and address
- Federal EIN or Social Security number
- Description of business activities and expected sales volume
- Ownership and contact details
If you prefer, you can complete the Business Tax Application (CR-16) and mail the form to the Kansas Department of Revenue, PO Box 3506, Topeka, KS 66601, or fax it to 785-291-3614. Make sure the application is completed and signed before submitting. There is no registration fee, unless you are a cigarette retailer. Once your application is approved, you’ll receive a Kansas Tax Account Number, which you’ll use to file returns and make tax payments.
After You Register
- Display your permit at your business location.
- Begin collecting sales tax on taxable sales immediately.
- File and remit taxes according to your assigned filing frequency (monthly, quarterly, or annually).
Failing to register before making taxable sales can result in penalties or back taxes, so it’s best to complete registration as soon as your business begins operations. For more details and frequently asked questions, visit KDOR’s business registration page.
How to file Kansas sales tax?
Once you’re registered, filing your Kansas sales tax return is your next recurring responsibility. Businesses are required to file online through the Kansas Department of Revenue’s Customer Service Center, the same portal that you registered your business with. Paper forms will not be accepted.
When filing, you’ll report:
- Total sales for the filing period
- Nontaxable and exempt sales
- Taxable sales by location or jurisdiction
- Total tax collected
Be sure to use the correct local jurisdiction codes, since rates vary across cities and counties. The system automatically calculates how much you owe once you’ve entered your data.
If you operate in multiple Kansas locations, you’ll need to report sales separately for each location.
How to pay Kansas sales tax?
Payments can be made online at the same time you file through the KDOR portal. You can pay using:
- Electronic Funds Transfer (EFT) from your business bank account
- ACH debit
- Credit or debit card (for a small processing fee)
Kansas requires that taxes be paid in full when you file. If you owe no tax for a period, you must still file a zero return to stay compliant.
When is Kansas sales tax due?
Kansas sales tax returns are due on or before the 25th day of the month following the end of the reporting period. Your filing frequency depends on how much tax your business remits annually:
- Annual filing – if less than $1,000 in tax per year
- Quarterly filing – if between $1,000.01 and $5,000
- Monthly filing – if $5,000.01 or more per year
For example, a retailer that remits over $5,000 annually will file and pay monthly, with returns due by the 25th of each month.
If the 25th falls on a weekend or holiday, the due date moves to the next business day.
Kansas Compensating Use Tax Discount
Kansas offers a small incentive for out-of-state retailers who collect and remit the Kansas compensating use tax. The tax applies to items purchased outside Kansas but used within the state.
Certain neighboring-state retailers that voluntarily collect and remit Kansas use tax may qualify for a discount on the amount remitted. This discount helps offset administrative costs for businesses without a physical presence in Kansas but that make regular sales to Kansas customers.
Currently, Kansas recognizes compensating use tax discounts for certain neighboring states. These include a 2% discount for Missouri, a 2.5% discount for Nebraska (up to the first $3,000 in tax remitted each month, with a maximum discount of $75), and a 1% discount for Oklahoma, capped at a total of $2,500.
If your business operates in multiple states, explore our Sales Tax Discount Guide to see if any of your locations qualify for a collection allowance. With DAVO, that allowance is returned to your business in full, sometimes even covering the entire cost of your DAVO subscription.
What is Kansas sales tax penalty and interest?
If your Kansas sales tax return or payment is late, the Kansas Department of Revenue will assess both penalties and interest on the balance due. Staying current with your filings is the best way to avoid unnecessary costs and ensure compliance.
Kansas applies a penalty of 1% per month on any unpaid balance, up to a maximum of 24%. This penalty continues to accrue each month until the full tax balance is paid.
In addition to penalties, interest is charged on the unpaid tax amount, not on the penalty or on previously accrued interest. The interest rate is around 9% annually, or 0.75% per month (or part of a month), on any late or underpaid tax.
Together, penalties and interest can add up quickly, making timely filing and payment essential for Kansas businesses. Even if you have no taxable sales during a reporting period, be sure to file a zero return by the due date to avoid automatic penalties. Visit the KDOR’s website for more information on penalties and the latest interest rates.
How DAVO can help with Kansas sales tax
Managing Kansas sales tax can feel like another full-time job, especially when you’re tracking multiple local rates, exemptions, and monthly due dates. That’s where DAVO makes things simple.
DAVO works seamlessly with your point-of-sale system to handle sales tax automatically from start to finish. Each day, DAVO sets aside the exact amount of sales tax you’ve collected, keeping those funds separate so they’re ready when it’s time to file. When your Kansas return is due, DAVO automatically files and pays it on your behalf, on time and in full, guaranteed.
You’ll always have full visibility through daily and monthly reports that show exactly how much sales tax was collected, set aside, and remitted. For Kansas businesses, from restaurants in Lawrence to retailers in Overland Park, DAVO takes the stress out of sales tax so you can stay compliant, avoid penalties, and focus on running your business.
Choose your POS system to get started with DAVO.
Kansas Department of Revenue Information:
https://www.ksrevenue.gov/index.html
785-368-8222
