As an e-commerce seller, you will need to collect sales tax in Kansas if you have:
(1) cumulative gross receipts from sales of $100,000 in the previous or current calendar year (economic nexus), or
(2) physical presence in Kansas (physical nexus).
Below, we will highlight some of the basic provisions of Kansas sales tax law.
What is the tax rate range for Kansas?
State: Kansas’s general sales tax rate is 6.5%. Kansas has a reduced rate of 4% for certain food products in 2023. The rate reduces to 2% in 2024 and to 0% in 2025. Pub. KS-1223 Food Sales Tax Rate Reduction.
Local: Kansas localities impose their own sales tax at rates ranging from 0% to 2%. Kansas Sales and Use Tax Rate Locator
Do you have physical or economic nexus in Kansas?
Physical nexus. Certain business activities create physical nexus in Kansas. If you have physical nexus, you are required to collect and remit sales tax on all sales that are shipped to Kansas. Examples of business activities that can create physical nexus in Kansas include:
- any retailer maintaining in Kansas, permanently, temporarily, directly or indirectly through a subsidiary, agent or representative, an office, distribution house, sales house, warehouse or other place of business;
- any retailer utilizing an employee, independent contractor, agent, representative, salesperson, canvasser, solicitor or other person operating in Kansas either permanently or temporarily, for the purpose of selling, delivering, installing, assembling, servicing, repairing, soliciting sales or the taking of orders for tangible personal property;
- any retailer, including a contractor, repair person or other service provider, who enters Kansas to perform services that are enumerated in K.S.A. 79-3603, and amendments thereto, and who is required to secure a retailer's sales tax registration certificate before performing those services;
- any retailer deriving rental receipts from a lease of tangible personal property situated in Kansas;
- any person regularly maintaining a stock of tangible personal property in Kansas for sale in the normal course of business;
Economic nexus. Remote sellers that have cumulative gross receipts from sales of $100,000 in the previous or current calendar year must collect and remit Kansas sales and compensating use tax on taxable sales. Additional information:
- Cumulative gross receipts includes all taxable and nontaxable sales made to customers in Kansas
- A remote seller is required to register, collect, and remit tax on the next transaction after meeting or exceeding the threshold.
Remote Sellers and Marketplace Facilitators
What are examples of sales of taxable items?
- Tangible personal property, unless an exemption applies
- Food (reduced rate)
- Certain services
- Leases and rentals of tangible personal property
What are examples of sales of nontaxable/exempt items?
- Prescription drugs
- Digital goods
- Farm machinery and equipment
- Software as a service (SaaS)
- Kansas Sales Tax and Compensating Use Tax – Pub KS-1510
Are there any sales tax holidays?
Currently, Kansas does not have any sales tax holidays.
Is Kansas a member of the SST (Streamlined Sales Tax)?
Currently, Kansas is a full member of the Streamlined Sales Tax Governing Board (SSTGB).
How to get a sales tax permit / links to register in Kansas?
You can register online at:
Streamlined Sales Tax Registration System
Kansas Sales and Use Tax Rate Locator