Kansas Governor Laura Kelly said grocery shoppers are expected to see an additional $150 million in savings in the next year because of the bill she signed in 2022 to phase out the state sales tax on groceries.
According to projections from the Kansas Department of Revenue, the reduction of the state sales tax on groceries from 4% to 2% will save shoppers $12.5 million per month in 2024. The governor said this is a step toward total elimination of the state sales tax on groceries, which will happen in 2025.
In 2023, the state sales tax rate on groceries went down from 6.5% to 4%, saving consumers $187.7 million per year. By the end of 2024, it is projected that shoppers will have saved more than half a billion dollars in sales tax on groceries over the two years the reduction has been in place.
The state sales tax reduction applies to food, food ingredients, and certain prepared foods. When looking at a receipt, shoppers will see two tax rates, one for qualifying purchases and one for all other items.
The reduction to the 2% state sales tax on qualifying items goes into effect January 1st, 2024.
