The standard sales tax rate in Kansas ranges from 6.5 to 10.6%.
The reduced sales tax rate in Kansas is 2%.
Sales of tax-free products and services
Several products and services are tax-free in Kansas, including aircraft, broadcasting equipment, drill bits, drugs, and pharmaceuticals sold to veterinarians, food, integrated production machinery, public health, rolling stock, and others.
Who is obliged to register sales tax in Kansas
When you sell in Kansas and have “sufficient activity” in Kansas, you need to be registered to collect and pay sales tax in Kansas.
Starting October 1, 2019, Kansas considers any business that makes sales into the state to have economic nexus. There is no sales tax threshold.
The special rules are applicable to the SAAS business.
If all of your sales in Kansas are through a marketplace platform, you can not register for paying Kansas sales tax. Your marketplace facilitator pays the sales tax itself.
If you are selling through your own marketplace, then you will need to register for paying sales tax.
Sales tax payment and filing date
Depending on your tax liability, determine your filing frequency – either annual, monthly, or quarterly:
- Annual – $0 to $6.66;
- Quarterly – $6.67 and up;
- Monthly – $266.67 and up;
- Monthly with Prepayment – $2,666.67 and up.
Returns are always due on the 25th day of the month following the reporting period. If the filing due date falls on a weekend or holiday, the tax is due the next business day.
Penalty and interest
Decline to File or Pay – 1% of the tax due per month or cut (maximum – 24%).