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.

 

Tax Topeka to death ......

Topeka City Council unanimously approved raising the transient guest tax (TGT, or hotel/motel tax) from the current 7% to 8.5%, effective January 1, 2027, with no sunset date.

This is a 1.5 percentage point increase that prevents a scheduled drop (back toward a base of around 6%) and is projected to generate roughly an additional $600,000 annually for tourism-related uses.

Background and Rate History

• The TGT is a local tax on short-term lodging (typically under 28 days) paid by visitors, not local residents (unless they stay in a hotel). Hotels collect and remit it.
• It started at 5%. Layered increases followed:
  • +1% (sunset end of 2027) for venues like Jayhawk Theatre, Constitution Hall, Evergy Plaza, and a new ice rink.
  • +1% (sunset 2032) for Sunflower Sports Association.
  • +1% specifically for Hotel Topeka (city-owned/purchased asset) to help recoup investments, bringing it to 8% at that property.
• Without action, it was slated to drop (to 6% or so after 2027). The new flat 8.5% locks in higher revenue permanently.

Hotel Topeka (a city-acquired property via the Topeka Development Corporation) had its own 8% rate; it will now align at 8.5%. The city bought it for ~$7.6–8.5M in 2023, invested ~$14M in improvements, and is in the process of selling it to a private operator (Endeavor Hotel Group) while using targeted taxes/sales tax increments to recover costs.

Revenue Allocation and Uses

Revenue primarily supports tourism and economic development (90% often to Visit Topeka, 10% general fund for the base portion; additional layers tied to specific projects). Funds go toward operating convention centers, promoting tourism, financing projects like theaters, plazas, sports facilities, and an ice rink.

Mayor Spencer Duncan framed it as aligning with peer cities in Kansas to maintain funding without a decrease. Deputy Mayor Michelle Hoeferer emphasized it targets visitors bringing "outside dollars" into the city.

Context in Kansas

Kansas allows cities to set TGT rates via charter ordinance (beyond a base statutory 2%). Rates vary widely:

• Many mid-sized cities are in the 5–8% range.
• Examples: Wichita ~6%, Manhattan 7.5%; some others (e.g., Abilene, Atchison) at 8%. Overland Park has reached 9%. Topeka's new 8.5% is competitive but not the highest.

Impacts

• On visitors: Hotel stays in Topeka will cost ~1.5% more starting 2027 (on top of state sales tax and any other fees). For a $150/night room, that's an extra ~$2.25/night. It could slightly deter price-sensitive travelers but is modest compared to total trip costs.
• On hotels: They collect/remit the tax; higher rates might slightly suppress demand, but the revenue often loops back into tourism promotion that drives more visitors.
• On the city: Steady funding for attractions and events without raising taxes on residents. Extra ~$600k helps sustain/expand projects. No immediate plans announced for the new portion beyond general tourism/economic development.
• Broader: This is a common "exported" tax strategy—shifting burden to non-residents to fund public amenities.

Public reaction (from comments) has been mixed: some see it as reasonable for funding assets and tourism; others question priorities (e.g., specific venues) or note it adds costs amid other economic pressures.

Overall, this is a proactive move by Topeka to stabilize and boost tourism funding as prior temporary increases expired, while addressing costs from assets like Hotel Topeka. It keeps the city in line with regional peers without a major jump. For the latest official details, check Topeka city agendas or the Kansas Department of Revenue TGT rate lists.