Marina
Kansas residents are ringing in 2025 with major financial relief as the state’s grocery sales tax is officially eliminated.
Triggered by the 2022 “Axe the Food Tax” law, the phased reduction finally drops the state sales tax on groceries to 0%, offering substantial savings for households across the state.
Kansas has officially started 2025 with a big financial relief for its residents—the state grocery sales tax has been completely eliminated.
After years of planning under the “Axe the Food Tax” law, shoppers in Kansas will now see 0% state sales tax on most grocery items like bread, eggs, milk, fruits, and vegetables. The phased tax cut began in 2023 at 4%, dropped to 2% in 2024, and is now fully eliminated in 2025.
While local city and county taxes may still apply, this landmark change is expected to save Kansas families hundreds of dollars each year, offering much-needed relief at a time of rising grocery costs.
What Changed- Timeline of Tax Reductions
Kansas introduced a three-year plan to systematically reduce and ultimately eliminate the state grocery sales tax:
| Year | State Sales Tax Rate on Groceries | Key Notes |
|---|---|---|
| 2022 | 6.5% | Highest in the nation at the time. |
| Jan 1, 2023 | 4% | First reduction phase begins. |
| Jan 1, 2024 | 2% | Further reduction implemented. |
| Jan 1, 2025 | 0% | Final phase: full elimination of state tax. |
This phased approach was mandated by House Bill 2106, passed in 2022. It progressively reduced the state portion of the tax—from 6.5% down to 0% over three years. By January 1, 2025, all state-level grocery taxes were removed.
However, local city and county taxes remain in effect, meaning consumers may still see taxes on receipts depending on locality.
How Much Kansans Stand to Save
- The Kansas Department of Revenue projects monthly savings of $13 million statewide after elimination.
- Annual savings are estimated at $156 million overall.
- An average family of four could save approximately $500 per year on groceries alone.
- In earlier phases:
- 2023 reduction to 4% resulted in $187.7 million saved per year.
- By end of 2024, cumulative savings reached around $570 million.
Who Benefits the Most?
- Low-income households stand to gain the most, as grocery taxes are regressive and hit those with less income harder.
- Removing this tax contributes to food security, improving accessibility to essentials for vulnerable groups.
- The average monthly grocery spend per household in Kansas is around $500, meaning a full state tax would have added ~$10–33 per month, depending on past rates. That’s now eliminated.
What Still Applies- Local Taxes & Prepared Foods
- Only the state-level portion of the sales tax was eliminated. City and county taxes still apply—rates vary widely across counties.
- For example, Sherman County still levies up to 2.25%.
- Prepared foods—such as hot meals, deli sandwiches, or restaurant-style items—remain fully taxed at the standard state rate (6.5%).
- Examples of what’s still taxed:
- Deli or heated items
- Prepared meals
- Non-food items like utensils or silverware
- Unprepared food items—like bread, eggs, milk, fruits, and similar shelf-stable products—are now tax-free at the state level but could still incur local taxes.
Receipts & Real-World Impact
Shoppers might notice two separate lines on receipts:
- One for combined state + local tax (though state is now 0%, some systems still show it).
- A second line for taxes applicable only to prepared food, which remains taxed by both state and local rates.
Some retailers experienced early glitches during prior transitions, like overcharging customers, but those issues have since been resolved.
Broader Landscape- Kansas in Context
- As of 2025, Kansas stands out as the most food tax-friendly state, with full elimination of the grocery tax.
- Nearby states like Oklahoma have also eliminated state grocery taxes recently; others like Illinois and Arkansas plan to follow.
- Many states—such as Alabama, Missouri, and Utah—still maintain grocery taxes ranging from 1% to 4%.
2025 dawns with meaningful relief for households across Kansas. The state’s bold decision to eliminate the grocery sales tax delivers up to $500 in annual savings for families, alongside $156 million in projected annual state savings.
While local taxes and prepared food taxes remain, Kansans are reaping the benefits of a smarter, fairer tax system—especially those most burdened by inflation and everyday essentials. This policy change underscores a commitment to economic relief, food security, and tax fairness.