Governor Laura Kelly announced Thursday that Kansans are expected to save $156 million in 2025 due to the reduction in the state sales tax rate on groceries from 2% to zero, as part of the “Axe the Food Tax” legislation she signed in 2022. Projections from the Kansas Department of Revenue estimate that this change will save shoppers $13 million per month.

Governor Kelly first called for the elimination of the state sales tax on groceries in 2021, after working to strengthen the state’s financial standing. The Legislature passed a plan to gradually reduce the sales tax on groceries over three years. In 2023, the rate decreased from 6.5% to 4%, saving consumers $187.7 million annually. By the end of 2024, it was projected that shoppers had saved nearly $570 million due to the reductions.

The tax reduction applies to food, food ingredients, and certain prepared foods. Shoppers will see two tax rates on their receipts: one for qualifying items and one for other purchases. The full elimination of the state sales tax on qualifying items took effect on January 1, 2025.