State Taxes at a Glance – Kansas
| Type of Tax | 2023 |
|---|
| Individual Rates | 3.10% to 5.70% |
| Corporate / Business Tax Rates | 4.00% to 7.00% |
| Gross Receipts Tax | None |
| Sales Tax | 8.66% (average) |
| Property Taxes | 1.32% as a percentage of primary home |
| Estate or Inheritance Tax | None |
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%. The highest bracket starts at $30,000.
Kansas Intangibles Local Tax
The state of Kansas has an additional local income tax called “Intangibles Tax.” This tax is assessed on interest and dividends. It ranges from 0.75% to 2.25% depending on which county you live in.
State Business Taxes in Kansas
The state of Kansas has a Corporate income tax that is based on a marginal scale with only 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.
Sales and Property Taxes in Kansas
Sales Tax – 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 2.16% (which puts the state average 8.66%). 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%.
Kansas DMV Fees
The state of Kansas imposes a personal property tax paid to your county based on the vehicles value. That means it is deductible on your federal tax return. You may look up your Kansas DMV fees here.
Kansas Domicile
Kansas’s presumption is that it’s your permanent place of abode (domicile) if you’ve lived there for over 6 months within a taxable year, in absence of proof to the contrary.
State Tax on Social Security Benefits
Kansas is one of the few states that partially taxes Social Security Benefits. There’s are exemptions based on age and income. Unfortunately, the exemption is the same for all filing statuses.
| Filing type | Exemption |
|---|
| Single | Less than $75,000 |
| Married filing jointly | Less than $75,000 |
Payroll 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 0.20% to 7.60% (new employer’s rate starts at 2.7%)
- 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