The sales tax in Lawrence, KS is 9.35 percent on most purchases, combining a 6.50 percent state rate, a 1.25 percent Douglas County rate, and a 1.60 percent city rate.1City of Lawrence. Sales Tax Groceries are taxed at a much lower rate, and shops inside certain commercial districts charge more. The details below cover what you owe at the register, what a business has to collect and file, and the rules for selling into Lawrence from elsewhere.
How the 9.35 Percent Breaks Down
Three taxing authorities share every taxable dollar spent in Lawrence:1City of Lawrence. Sales Tax
- State of Kansas: 6.50 percent, applied statewide under K.S.A. 79-3603.2Kansas Office of Revisor of Statutes. Kansas Code 79-3603 – Retailers Sales Tax Imposed Rate
- Douglas County: 1.25 percent.
- City of Lawrence: 1.60 percent. One cent funds general city operations. The remaining 0.60 percent, amended April 1, 2025, is earmarked for streets and infrastructure (0.30%), public transit (0.20%), and affordable housing (0.10%), and sunsets after 10 years.1City of Lawrence. Sales Tax
Retailers calculate the tax by multiplying the selling price by 9.35 percent.
Groceries Are Taxed at 2.85 Percent
Kansas eliminated the state sales tax on groceries effective January 1, 2025, the final step in a phaseout that began in 2023.3Kansas Department of Revenue. Pub KS-1223 Food Sales Tax Rate Reduction The reduction only wiped out the state’s 6.50 percent share. Local taxes remain in place, so food and food ingredients bought in Lawrence still carry a combined 2.85 percent (1.25% county plus 1.60% city). The lower rate applies to groceries and most food ingredients. Prepared meals at restaurants, bars, and catered events still face the full 9.35 percent.
Districts Where the Rate Is Higher
Some commercial areas sit inside a Transportation Development District (TDD) or a Community Improvement District (CID), each of which adds its own sales tax on top of 9.35 percent to fund infrastructure tied to the development.
Active TDDs add 1 percent at The Oread, Bauer Farms, and the 9th and New Hampshire corridor.1City of Lawrence. Sales Tax
CIDs can add up to 2 percent. KU Crossing has carried a 1.5 percent CID rate since January 1, 2025. KU Gateway and the Rueters Building CID both take effect January 1, 2026, at 2 percent. RKMKU takes effect January 1, 2027, at 2 percent, and 900 Rhode Island takes effect January 1, 2028, at 2 percent.1City of Lawrence. Sales Tax
In a CID with a 2 percent surcharge, the total sales tax reaches 11.35 percent. Shoppers can spot the extra as a separate line on their receipts. Businesses operating inside these districts have to track and report the district collections separately.
What Is Taxable and What Is Exempt
Kansas taxes the retail sale of tangible personal property, including clothing, electronics, and furniture. Prepared meals and drinks, equipment rentals and other leases of tangible property, and labor services to repair, maintain, or install tangible personal property are all taxable.4Kansas Department of Revenue. Pub KS-1510 Sales Tax and Compensating Use Tax
Construction labor is a notable exception. Labor for the original construction of a building, and for residential reconstruction, remodeling, renovation, and repair, has been exempt from Kansas sales tax since July 1, 1998.5Kansas Department of Revenue. Sales and Use Tax for Contractors Subcontractors and Repairmen The materials used in that work are still taxable; only the labor is exempt.
Retailers can buy inventory for resale tax-free by giving their supplier an exemption certificate. Tax is then collected when the item reaches the final consumer. Keep those certificates on file. If the Kansas Department of Revenue audits and the certificate is missing, the retailer owes the tax.
Kansas-based tax-exempt organizations such as public schools, nonprofits, and government agencies have to obtain an exemption number from the Kansas Department of Revenue and present the department-issued certificate when buying.6Kansas Department of Revenue. Designated or Generic Exemption Certificate
Registering a Lawrence Business for Sales Tax
Any business making taxable sales in Lawrence has to register with the Kansas Department of Revenue before collecting tax. Registration runs through the department’s Customer Service Center, where a questionnaire sorts out which tax accounts you need.7Kansas Department of Revenue. Business Registration There is no fee. Once registered, you receive a sales tax account number and can file returns through the same portal.
Filing Frequency and Due Dates
How often you file depends on how much sales tax you collect per year:8Kansas Department of Revenue. Filing Frequency FAQ
- Annual, for up to $1,000 in yearly tax liability: one return, due January 25 of the following year.
- Quarterly, for $1,000.01 to $5,000: returns due April 25, July 25, October 25, and January 25.
- Monthly, for more than $5,000: due by the 25th of the following month.
Seasonal businesses file monthly during the months they operate. Every return is due on the 25th regardless of frequency.9Kansas Department of Revenue. Pub KS-1515 Tax Calendar of Due Dates
How to File and Pay
Since January 1, 2023, all Kansas retailers file using the ST-36 Retailers’ Sales Tax Return, whether reporting one jurisdiction or several. The older ST-16 is no longer accepted.10Kansas Department of Revenue. Notice 22-13 – ST-16 Retailers Sales Tax Return No Longer Used Filing goes through the Kansas Department of Revenue’s Customer Service Center, the only electronic option for business tax returns.11Kansas Department of Revenue. Make a Tax Payment
To file, you need your tax account number, the jurisdiction code for Lawrence, your gross receipts for the period, and any deductions for exempt or returned sales. The portal computes the tax owed based on the combined rate for each jurisdiction where you made sales. Payments can be made by ACH debit (free) or credit card.11Kansas Department of Revenue. Make a Tax Payment Paper returns go to the Kansas Department of Revenue, PO Box 3506, Topeka, KS 66625-3506.12Kansas Department of Revenue. Business Mailing Addresses
Penalties for Filing or Paying Late
Kansas charges a penalty of 1 percent per month on the unpaid balance, up to a maximum of 24 percent. Interest accrues on top of that. For 2026, the interest rate is 8 percent annually, or 0.67 percent per month or any fraction of a month.13Kansas Department of Revenue. Penalty and Interest If you cannot pay in full, file on time with a partial payment anyway. The penalty runs on the unpaid balance, not the full amount.
Selling Into Lawrence From Out of State
If you sell into Kansas from another state, you have to collect Kansas sales tax once your gross receipts from Kansas customers exceed $100,000 in the current or prior calendar year.14Kansas Department of Revenue. Notice 21-17 Remote Sellers There is no separate transaction-count threshold. Remote sellers who cross the line register, collect the correct combined rate for each Kansas delivery address (9.35 percent for Lawrence), and file on the same schedule as local businesses.
Marketplace facilitators like Amazon, Etsy, and Walmart carry their own collection obligation under K.S.A. 79-5603, in effect since July 1, 2021. The platform collects and remits tax on all sales it facilitates to Kansas customers, whether or not the individual seller is registered.15Kansas Office of Revisor of Statutes. Kansas Code 79-5603 – Marketplace Facilitator If you sell only through a marketplace, the platform handles the Kansas tax. Sales you make on your own website, at craft fairs, or through other direct channels remain your responsibility.
Deducting Lawrence Sales Tax on Your Federal Return
Itemizers on the federal return can deduct either state and local income taxes or state and local sales taxes, not both. Kansas has an income tax, so most residents find the income tax deduction more valuable. For a year with large purchases such as a car or a major home renovation, the sales tax deduction can come out ahead. The IRS publishes tables based on income and family size to estimate your annual sales tax, and you can add actual tax paid on specified large purchases on top of the table amount.16Internal Revenue Service. Use the Sales Tax Deduction Calculator
The combined state and local tax deduction (income or sales, plus property taxes) is capped. Under the One Big Beautiful Bill signed in 2025, the cap rose from $10,000 to roughly $40,000 for the 2025 tax year, with a 1 percent inflation adjustment in later years. For 2026, the cap is about $40,400 for most filers and $20,200 for married filing separately.