Kansas Sales Tax Guide for SaaS and E-Commerce Businesses 2025

Kansas imposes a Sales Tax on most goods at the state rate of 6.5%, with additional local taxes ranging from 0% to 2%. SaaS and most digital products are generally not taxable, but remote sellers meeting economic nexus thresholds must register and collect Kansas sales tax.

Last updated: October 2025

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Quick Reference: Kansas Sales Tax (2025)

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SaaS & Software Taxability in Kansas

Kansas generally does not tax SaaS or hosted software services. According to the Kansas Department of Revenue, charges for hosted software services where the software is accessed remotely and not downloaded or delivered to the customer are not subject to sales tax.

• SaaS (B2B and B2C): Not taxable when accessed remotely via subscription.
• Prewritten (canned) computer software: Taxable when sold, downloaded, or delivered to the customer.
• Custom software: Not taxable (exempt under Kansas law).
• Software modification services: Services to modify, alter, update, or maintain prewritten software are taxable.
• Digital downloads: Downloaded software is treated as prewritten software and is taxable.

Important distinction: The key factor is whether the software is delivered or downloaded to the customer. If the customer only accesses the software remotely on the provider's servers (true SaaS), it is not subject to Kansas sales tax.

Official guidance can be found in the Kansas Department of Revenue's Publication KS-1510, Sales Tax and Compensating Use Tax and Information Guide EDU-71R regarding computer software.

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E-Commerce & Goods Taxability

• Tangible goods: Taxable at the combined state and local rate (6.5% state + local).
• Shipping/delivery: Not taxable when separately stated on the invoice (as of July 1, 2023).
• Marketplace facilitator rules: Platforms like Amazon, Shopify, and Etsy must collect tax when they exceed $100,000 in taxable sales to Kansas customers.

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Who Must Collect Kansas Sales Tax?

You must register if you meet any of these criteria:

• Economic nexus: Cumulative gross receipts exceeding $100,000 from sales to Kansas customers in the current or preceding calendar year.
• Physical nexus: Office, warehouse, employees, inventory, or other physical presence in Kansas.
• Marketplace facilitators: Must collect tax on behalf of sellers when exceeding the $100,000 threshold (based on taxable sales only).

Note: The economic nexus threshold is based on all sales to Kansas customers, regardless of whether items are taxable or exempt. However, only sales in excess of $100,000 must be taxed in the first year a seller meets the threshold.

See official guidance: Notice 21-17: Remote Sellers and Notice 21-14: Marketplace Facilitators

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What's Taxable in Kansas?

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Filing & Due Dates

Filing frequency is assigned by the Kansas Department of Revenue based on annual tax liability:

• Annual filers: $0 - $1,000 in annual tax (due January 25 of following year)
• Quarterly filers: $1,000.01 - $5,000 in annual tax (due 25th of month following quarter end)
• Monthly filers: $5,000.01 and over in annual tax (due 25th of following month)

Example: April sales → file and pay by May 25.

All filings and payments must be submitted electronically through the KDOR Customer Service Center.

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Penalties & Interest

• Late filing penalty: 5% per month of unpaid tax (up to 25% maximum).
• Interest: Accrues on unpaid taxes.
• Failure to register: Additional penalties may apply for businesses required to register that fail to do so.

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How to Register for Kansas Sales Tax

1. Determine if you have nexus (economic or physical).
2. Register online through the KDOR Customer Service Center or through the Streamlined Sales Tax Registration System.
3. You'll need your EIN, business details, and sales estimates.
4. Once approved, you'll receive a sales tax account number.
5. Collect the appropriate state and local tax rate based on customer location.
6. File returns according to your assigned schedule.
7. Remit payments by the 25th to avoid penalties.

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FAQs: Kansas Sales Tax

Is SaaS taxable in Kansas? No, SaaS accessed remotely is generally not taxable. However, downloaded software is taxable.

What is Kansas's economic nexus threshold? $100,000 in cumulative gross receipts from sales to Kansas customers in the current or preceding calendar year.

Does Kansas have local sales tax? Yes, local jurisdictions can impose sales tax ranging from 0% to 2% in addition to the state rate.

When are returns due? By the 25th of the month following the reporting period (monthly, quarterly, or annually depending on your assigned filing frequency).

Do marketplace sales count toward nexus? For marketplace facilitators, only taxable sales count toward the $100,000 threshold. For remote sellers, all sales (taxable and exempt) count toward the threshold.

What rate do I charge? Kansas uses destination-based sourcing. Charge the rate where the customer takes delivery or receives the product. Use the Kansas Sales Tax Rate Locator to find rates.

Do I have to collect tax on my first $100,000 in sales? In your first year of meeting the threshold, you're not required to collect tax on the first $100,000 in sales, but you must collect on all sales beyond that amount. In subsequent years, you must collect on all sales if you exceeded the threshold in the prior year.

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Official Kansas Resources

• KDOR Customer Service Center (Registration & Filing)
• Kansas Department of Revenue Homepage
• Publication KS-1510: Sales Tax and Compensating Use Tax
• Information Guide EDU-71R: Computer Software
• Notice 21-17: Remote Sellers
• Notice 21-14: Marketplace Facilitators
• Kansas Sales Tax Rate Locator
• Publication KS-1700: Sales Tax Jurisdictions
• Marketplace Facilitators and Remote Sellers Information
• Streamlined Sales Tax Registration