Kansas Tax Rates

This post provides an overview of the primary taxes levied at the state level in Kansas. The information contained here is intended for general reference. For individuals or businesses seeking comprehensive support with tax filings, compliance, or strategic planning, indinero offers expert services. We encourage all who utilize this summary to explore the tailored tax support available through indinero.

Individual Income Tax

Kansas employs a graduated state individual income tax system, using a simple structure with two tax brackets.

  • Tax Rates: Rates range from a low of 5.2% to a top marginal rate of 5.58% (for tax year 2024 and thereafter). The top rate applies to taxable income over $46,000 for married couples filing jointly and over $23,000 for all other filers.
  • Retirement Income: Social Security benefits are fully exempt from Kansas income tax. Income from certain government pensions, including military, federal civil service, and Kansas state pensions, is also not taxed. Private retirement income is generally taxable.
  • Standard Deduction: Taxpayers can claim a substantial standard deduction and a personal exemption, which reduce the amount of income subject to tax.

Sales and Use Tax

Sales tax is a major source of revenue in Kansas, resulting in a high combined state and local rate.

  • State Rate: The general state sales tax rate is 6.50% on the retail sale of tangible personal property, leases, and specific services.
  • Local Taxes: Local jurisdictions (counties and cities) impose additional local sales taxes, which can vary significantly and contribute to a high tax burden. The average combined state and local sales tax rate is approximately 8.78%, but the total rate can reach up to 11.5% in some municipalities.
  • Food Sales Tax: Kansas taxes groceries (unprepared food) at the full state rate. However, the state offers a refundable Food Sales Tax Credit to eligible low-income individuals and families to offset this tax burden.
  • Use Tax: A corresponding Consumers’ Compensating Use Tax of 6.50% applies to taxable items purchased outside of Kansas but used, stored, or consumed in the state if state sales tax was not collected.

Property Tax (Ad Valorem Tax)

Property taxes in Kansas are collected exclusively at the local level by counties, cities, and school districts, though the state sets the assessment rules. The effective property tax rate is generally considered to be above the national average.

  • Assessment: All property is appraised at its fair market value, but the assessment rate (the percentage of appraised value that is taxable) varies by property type:
    • Residential property is assessed at 11.5% of its appraised value.
    • Commercial and industrial property is assessed at 25% of its appraised value.
    • Agricultural land is assessed at 30% of its use value.
  • Tax Calculation: The tax owed is calculated by applying the local mill levy (the local tax rate) to the property’s assessed value. These mill levies vary widely based on the budget needs of local taxing districts.

Corporate Income Tax

Kansas imposes a tax on the net income of corporations that conduct business in the state. The tax is structured with a base rate and a surtax.

  • Base Rate: The standard corporate income tax base rate is 4.0% of the corporation’s net income.
  • Surtax: An additional 3.0% surtax is applied to net income in excess of $50,000. This results in a total top marginal rate of 7.0% on income over the $50,000 threshold.
  • Apportionment (Post-2026 Change): Prior to 2027, Kansas utilized a three-factor formula (property, payroll, and sales) to apportion income for multi-state corporations. Beginning in tax year 2027, the state will transition to a more modern single sales factor apportionment method.

Unique Business and Excise Taxes

  • Banking Privilege Tax: Financial institutions, such as banks and savings and loan associations, are subject to a specific privilege tax on their net income, which is levied instead of the standard corporate income tax structure.
  • Motor Fuel Tax: A per-gallon tax is levied on gasoline and diesel, currently set at approximately 25 cents per gallon.
  • Cigarette Tax: The state imposes an excise tax on cigarettes, currently $1.29 per pack of 20 cigarettes.
  • Intangible Property Tax: While largely phased out, local governments (counties, cities, and townships) retain the option to levy a local tax on certain intangible property, such as stocks, bonds, and notes, up to a maximum combined rate of 3.0%.

R&D Offer Quiz

Step 1 of 3

Answer to find out if you're eligible for R&D tax credits.

Do the activities performed relate to a new or improved business component’s function, performance, reliability, quality, or composition?(Required)
For Example: A mid-sized packaging company develops a slightly modified cardboard box design to improve its stacking strength (reliability) for warehouse storage, involving minor adjustments to the corrugation pattern to reduce collapse under standard weight loads.
Is your company trying to discover information to eliminate uncertainty concerning the capability or method for developing or improving a business component?(Required)
For Example: A furniture manufacturer investigates whether a cheaper wood adhesive can hold joints as effectively as the current one during assembly, testing bond strength to resolve doubts about its capability in standard production lines.
Do the activities performed constitute a process of experimentation?(Required)
For Example: An auto parts supplier runs a series of bench tests on different lubricant formulations to find one that reduces friction in engine bearings more effectively, systematically comparing wear rates over simulated operating cycles.