Sales Tax Exemptions

Kansas imposes a 6.5% retailers sales tax on:

  • Sale of tangible personal property

  • Labor services to install or repair tangible personal property

  • Admission to entertainment establishments

Some entities are exempt from paying sales tax when making a direct purchase of goods. Not all entities that are exempt from paying sales tax on goods have an exemption on taxable services.

State or Federal Government Agencies are exempt from paying sales tax as the final consumer. This also covers agencies of these entities, which would include school districts, counties, cities, etc. Some nonprofits are exempt from paying sales tax, but not all. Nonprofit education institutions, museums, and hospitals are a few that are exempt from paying sales tax. However alumni associations, clubs, and athletic organizations are not exempt from paying sales tax. There is a specific list of nonprofit organizations listed on the Kansas Department of Revenue website. 

Most personal property sold in Kansas is subject to sales tax, but there are a few exceptions. The Kansas Department of Revenue’s website outlines the specific exemptions, as they are many.

Every scenario is different, therefore this general advice cannot be applied directly to your situation and is not intended to be tax advice. If you have concerns about sales tax, it is best practice to consult with a tax professional.