STATE RANKING #32

Quick facts: 

-The State of Kansas has a Corporate income tax rate as high as 7% and individual income tax rate as high as 5.70%. Read more below

 

5.70%

State Income Tax

State
Income
Tax

7.00%

Cost of Setting Up A Business

state
business
tax

HIGH

Property
Taxes

8.68%

Sales
Tax (average)

State Income Taxes in Kansas

The state of Kansas does have an individual income tax. Like most states with income tax, it is calculated on a marginal scale with multiple brackets (3). The tax rates range from between 3.10% to 5.70% for 2020. The highest bracket starts at $30,000.

State Business Taxes in Kansas

The state of Kansas has a Corporate income tax that is based on a marginal scale with two (2) tax brackets – 

  • 4.00% for anything under $50,000, and 
  • 7.00% for anything over $50,000
 

Kansas recognizes Federal flow-thru entities, such as S Corporations, LLCs and Partnerships, and are therefore not subject to the corporate tax rate (however they are subject to the individual rate).

Sales Taxes in Kansas

Like most states, Kansas has both a state and local sales tax. Its state sales tax is 6.50% and it’s local sales tax has an average rate of 2.18% (which puts the state average 8.68%). This put Kansas in the top ten highest combined sales tax rates in the country.

Property Taxes in Kansas

The average property tax rate for residential property in the state of Kansas is 1.33%, which is well above the national average of 1.05%.

Unemployment taxes in Kansas

Unemployment taxes usually consist of three factors. They are the wage base, range of rates, number of schedules. Below is an outline of the three:

  • Wage Base – Kansas has a wage base of $14,000
  • UI Rates – range from 0.00% to 7.10%
  • Schedules – Kansas has multiple rate schedules regarding UI

Kansas Business Entities - LLCs

Kansas has average costs in regards to opening an LLC. Here are some important facts:

  • Kansas’ annual LLC fee is $50.
  • When you register with the state, you pay a one time fee of $160
  • Secretary of State of Kansas website – click here
  • If you would like help setting up your LLC, we recommend using IncFile.com. They are simple and easy to use.

State #31

State #33