Kansas shoppers are seeing lower grocery bills after the state officially eliminated the remaining 2% state sales tax on groceries, marking the final step in a multi-year plan to remove the tax entirely.
The change took effect January 1, 2025, reducing the state’s grocery tax from 2% to 0%. The move follows legislation passed in 2022 that gradually reduced the tax over three years.
Previously, Kansas had one of the highest grocery taxes in the country. The tax was 6.5% in 2022, before being lowered to 4% in 2023, 2% in 2024, and finally eliminated in 2025.
Millions in Savings for Kansas Residents
State officials estimate the elimination of the final 2% tax will save Kansans about $13 million per month, or roughly $156 million annually.
For individual households, the savings may appear small on each shopping trip but add up over time. Earlier reductions in the grocery tax saved residents millions per month, with individuals saving several dollars monthly on average and families saving significantly more depending on grocery spending.
State leaders say the full elimination of the tax could save an average family of four around $500 per year on groceries.
What Items Are Affected
The tax removal applies primarily to food and food ingredients purchased at grocery stores, such as bread, milk, fruits, vegetables, and other household staples. However, some items remain taxed at normal rates.
Prepared foods—such as hot meals, deli items, and foods served with utensils—still fall under the standard state sales tax rate, along with items like alcohol and tobacco.
Additionally, local city and county sales taxes can still apply, meaning grocery receipts may still show some tax depending on where a shopper lives.
A Shift in Tax Policy
Supporters say eliminating the grocery tax helps address concerns that sales taxes disproportionately affect low-income households, which tend to spend a larger share of their income on necessities like food.
The policy also reflects a broader national trend. Several states have recently reduced or eliminated grocery taxes as lawmakers look for ways to ease the impact of rising food prices and inflation.
With the final 2% state grocery tax now removed, Kansas joins a growing number of states offering tax-free groceries at the state level, giving residents some relief at the checkout line.