Food tax to drop Jan. 1

Starting Sunday, Jan. 1, Kansans will be paying a little less for groceries as the state tax rate on food drops from 6.5 percent to four percent.

During the 2022 Legislative session, Kansas lawmakers passed House Bill 2106, which amends current law related to sales tax on food.

The “Axe The Food Tax” bill further reduces the tax on food and food ingredients to two percent the following year on Jan. 1, 2024. The state tax will be eliminated by Jan. 1, 2025.

“Food and food ingredients” include bottled water, candy, dietary supplements, soft drinks and food sold through vending machines and excludes alcoholic beverages, tobacco and most prepared foods, according to the bill.

Food sales will still be subject to sales taxes imposed by counties and cities, it was reported.

Jackson County currently has a 1.4-percent sales tax in place while the city of Holton collects an additional .75-percent sales tax. In Mayetta, a 1.5-percent sales tax is collected within city limits.

With a 2.5 percent reduction in the state food tax this year, the Kansas Department of Revenues estimates that the food tax bill will reduce state revenues by $80.3 million in fiscal year 2023, $264.1 million in 2024, $434.4 million in 2025 and $533.9 million in 2026.

Gov. Laura Kelly, who was elected to a second term, recently announced a new plan to eliminate the tax on food completely by April 1 as part of a proposed tax package. 

If passed, the bill would eliminate that state sales tax on grocery food, feminine hygiene products and diapers this spring. It would also create a sales tax holiday for school supplies. 

The new legislative session begins on Monday, Jan. 9.

The Holton Recorder

109 W. Fourth St.
Holton, KS 66436
Phone: 785-364-3141

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