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Kansas State Taxes

Kansas State Taxes

State Taxes at a Glance – Kansas

Type of Tax2023
Individual Rates3.10% to 5.70%
Corporate / Business Tax Rates4.00% to 7.00%
Gross Receipts TaxNone
Sales Tax8.66% (average)
Property Taxes1.32% as a percentage of primary home
Estate or Inheritance TaxNone

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 typeExemption
SingleLess than $75,000
Married filing jointlyLess 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