KANSAS CITY, Mo. — Kansas consumers will save an estimated $150 million in 2024 as the bipartisan "Axe the Food Tax" legislation continues to cut back the state's sales tax on groceries, according to Kansas Democratic Gov. Laura Kelly.
When legislation to gradually eliminate the tax was signed in May 2022, Kansas' state sales tax on groceries, which sat at 6.5%, was one of the highest across the country, according to Kelly. Since 2022, the tax has reduced from 6.5% in 2022 to 4% in 2023, and starting Jan. 1, 2024, it will be slashed in half to 2%.
“By taking a middle-of-the-road approach, we have been able to continue putting money back in the pockets of every Kansan,” Kelly said in a press release. “This reduction is a step toward eliminating the state sales tax on groceries completely, which will happen in 2025.”
Kansas consumers saved $187.7 million — roughly $514,000 a day — when shopping for groceries in 2023 after the tax dwindled to 4%, according to Kelly.
The state sales tax reduction is applicable to food, food ingredient and certain prepared food purchases. Receipts clarify which purchases the reduction applies to, according to Kelly.
In 2022, Kelly, along with other Democrats such as Democratic Rep. Christina Haswood of District 10, urged Kansas legislators to work together to eliminate the state sales tax completely by July 1, 2022. Ultimately, the bipartisan legislation set January 2025 as the final reduction date.
“When Kansans needed it most, we were able to bring Democrats and Republicans together to eliminate our state’s tax on groceries,” Kelly said in a press release on the day of the legislation's signing. “Because we saved for our collective future, we can now responsibly axe the food tax — all while boosting funding to Kansas schools, roads, and law enforcement.”
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