Does Kansas charge sales tax on services?
by December 13, 2023
Please note: This blog was originally published in 2021. It’s since been updated for accuracy and comprehensiveness.
Almost every US state requires sellers to charge sales tax on tangible personal property, also known as physical goods. Many states also implement sales and use tax on digital goods and SaaS offerings. Because the economy has shifted over time from a manufacturing economy to a service economy, states are now looking to generate revenue by taxing services as well.
Here’s what merchants need to know about how to collect sales tax on services in the state of Kansas.
Are services subject to Kansas sales tax?
Many services are subject to Kansas’s 6.5% state sales tax rate:
- Certain advertising services
- Admissions to any place providing amusement, entertainment or recreation services
- Canned software and software upgrades and labor services to modify, alter, update or maintain software
- Maintenance agreements for taxable products or services
- Parts and labor services of repairing, servicing, altering or maintaining tangible personal property, such as computers, printers, copiers, etc.
- Telephone answering services, mobile phone services, beeper services and other similar services
- Total labor for improvement to real property at a commercial location
- Photographic services purchased for magnifying, enlarging, reducing, etc., of blueprints.
- Labor services to install and maintain tangible personal property at a commercial location
- Services to install, replace, or repair plumbing, wiring, built-in cabinets and other fixtures
- Linen and uniform services
- Labor services to repair car wash equipment, buildings, paving and other structures that make up a car wash
- Charges for subcontracted repair services (billed to your customer on your invoice)
- Labor services to install or repair appliances such as washer/dryers, TVs, and dishwashers at a residence
- Asbestos removal services
- Pest control treatments, and services
- Certain services for golf courses and country clubs
- Charges for services such as but not limited to: key making, glass cutting, engraving and product assembly
- Certain hotel and motel services
- Labor services to apply wax or polishing of floors and charges for the wax
- Services performed to an existing well, except for extending a well to reach new production zone, such as fracturing, jetting, plug back, acidizing, fishing, pump change, pulling rods, recompletions or workovers
- Services to cap and plug a well, removal of casing and plugging a dry hole
- Certain services related to pet stores, animal breeders, and kennel operations
- Demolition of a building or facility, or a portion of a building or facility, and all associated demolition services to install a telecommunication tower
- Paint and painting services
- Labor services of repairing and/or modifying a tower
- Labor services to construct, install or erect a tower in Kansas including associated fencing, anchor pads, etc.
See more details on taxable services in Kansas here.
Please keep in mind that this is a guideline, and you should consult with a sales tax professional to determine if the services your business provides should be taxed. For an in-depth look at sales tax in Kansas, TaxJar’s guide to sales tax in Kansas and the Kansas Department of Revenue has more details.
How to stay compliant with sales tax when you sell services
Managing all the moving parts of sales tax can be challenging. Are accounting services taxed? What about hair care or car maintenance? They may not be taxed in your state today, but sales tax laws change all the time. TaxJar makes it easier for you to stay current with it all, especially as you scale your business across states.
If you need to charge sales tax on services, TaxJar takes all of these state laws into account and makes your job simple. To learn more about TaxJar and get started automating your sales tax compliance, start a free, 30-day trial today.
