Thursday, May 7, 2026

Topeka's 8.5% is solid but not the highest in the state.

Kansas cities set their own Transient Guest Tax (TGT/hotel tax) rates via charter ordinances, often exceeding the statutory 2% base to fund tourism, conventions, and related projects. Rates as of early 2026 (per Kansas Department of Revenue data) range from 2–3% in smaller places up to 9–10% in larger or tourism-focused areas. Topeka's approved increase to 8.5% (effective Jan. 1, 2027) will position it competitively among mid-to-large Kansas cities.

Major/Regional City Comparison (Approximate Current Rates)

Here's a snapshot of notable cities (rates subject to updates; check KDOR for the latest):

  • Kansas City (and related districts): 8–10% (some special districts at 10% as of 2026).
  • Overland Park: 9%.
  • Olathe: Recently raised from 6% to 9% (effective ~2026, ahead of events like FIFA World Cup).
  • Mission: 9%.
  • Shawnee: Recently raised to 9%.
  • Topeka (current): 7% → 8.5% in 2027 (aligns with peers; prevents drop to ~6%).
  • Lawrence: 8% (increased to this rate effective 2026).
  • Manhattan: 7.5%.
  • Wichita: 6%.
  • Hays: 8.25%.
  • Emporia: 8%.
  • Andover, Abilene, Derby, El Dorado, Gardner, etc.: Often 8%.
  • Smaller cities (examples): Ottawa 6%, many at 5–6% (e.g., Arkansas City, Chanute), or lower (3–5%).

Distribution: Most mid-sized and larger cities cluster in the 6–9% range. Over 100+ cities use home rule to exceed 2%. Lower rates (under 6%) are more common in very small towns or those with less tourism infrastructure.

Key Context

  • Revenue Use: Funds typically support tourism promotion (e.g., Visit Topeka or equivalents), convention centers, events, sports facilities, theaters, and economic development. It's a "visitor-paid" tax that brings in outside dollars.
  • Why Variations? Larger metro/suburban areas (Johnson County/KC area) trend higher to fund big amenities and compete for events. College towns like Manhattan and Lawrence use them for visitor infrastructure. Topeka's move aligns it closer to these peers rather than lower-rate peers like Wichita.
  • Total Cost to Visitors: TGT adds to the state sales tax (~6.5% base + local) on lodging. A $150/night room at 8.5% TGT adds ~$12.75 in TGT alone (plus sales tax).

For the most accurate/current list, refer to the Kansas Department of Revenue's quarterly TGT Rates PDF (updated as of April 1, 2026). Rates can change via local ordinances, and some cities have special districts or overlays. Topeka's 8.5% is solid but not the highest in the state.

 

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