January 1 marks the beginning of the second year of the food sales tax phase out at the state level. According to the Kansas Department of Revenue, the sales tax on food and food ingredients, and certain prepared food, is not being repealed.
Instead, the state sales tax rate is being reduced, over time, to zero. The reduction in the sales tax rate on food and food ingredients, and certain prepared food, only applies to the state portion of the sales tax rate. All local sales and use taxes still apply.
The food sales tax rate for the state portion, as of January 1, 2024 will be 2.0%, with the remainder dropping off on January 1, 2025, if the statute remains the same in the 2024 legislative session.
It's important to note that the reduction is basically on groceries, while a restaurant meal still is charged at the full 6.5% state sales tax rate.