Tax in Kansas: a complete guide
Every place has its own tax rules and regulations, and Kansas is no exception. From graduated income tax rates to the cost of gas, here’s your Kansas tax guide.
Kansas income tax
Every US citizen is responsible for paying their federal income tax. Like most of the 50 states, Kansas also charges state-level income tax.
For corporations operating in Kansas, there is a base-level tax on net income of four percent. When a business’s yearly net income exceeds $50,000, it will also be charged a three percent surtax on top – for a total of seven percent corporate income tax.
As for individual income tax, three different tax rates could apply:
A single person OR a head of household OR a married person filing separately
| Taxable income | State income tax amount |
|---|---|
| Taxable income | State income tax amount |
| $0–$2,500 | 0 percent |
| $2,501–$15,000 | 3.1 percent |
| $15,001–$30,000 | 5.25 percent |
| $30,001 upwards | 5.7 percent |
Married people filing jointly
| Taxable income | State income tax amount |
|---|---|
| Taxable income | State income tax amount |
| $0–$5,000 | 0 percent |
| $5,001–$30,000 | 3.1 percent |
| $30,001–$60,000 | 5.25 percent |
| $60,001 upwards | 5.7 percent |
Kansas sales tax
The statewide sales tax in Kansas stands at 6.5 percent and applies to most purchasable goods and certain services. Individual counties and districts in Kansas may charge local sales taxes on top of this 6.5 percent, resulting in a higher total rate.
A range of things are exempt from sales tax, including transportation services, janitorial services, some custom software, some medical devices and services, and some machinery items.
Other things have a unique tax rate. As of January 2023, food and ingredients are taxed at four percent rather than the standard 6.5 percent, making things more affordable for state residents.
A separate excise tax, often described as a “sin tax,” applies to certain items and differs depending on product specifics:
| Product | Cost |
|---|---|
| Product | Cost |
| Any tobacco products other than cigarettes | 10 percent of the manufacturer’s price |
| Beer | $0.18 per gallon |
| Cigarettes | $1.29 per pack |
| Liquor | $2.50 per gallon |
| Wine over 16 percent | $0.75 per gallon |
| Wine under 16 percent | $0.30 per gallon |
| Vapor products | $0.05 per milliliter |
Kansas property tax
The cost of housing in Kansas is 29 percent lower than the US average, according to RentCafe. If you’re moving to Kansas from Connecticut, you’ll likely be pleased to see how much more you can get for your money in the Sunflower State.
As for how you’ll be taxed on the home you buy, property tax rates in Kansas are relatively high, averaging 1.29 percent, but differing from county to county.
When compared against the average property value, this tells us that the average Kansas homeowner pays $1,625 annually. If you’re hoping to get the best value for your money, pay attention to how payments change from county to county and avoid the places charging steeper rates:
| Kansas county | Median annual property tax payment |
|---|---|
| Kansas county | Median annual property tax payment |
| Allen | $1,367 |
| Barton | $1,796 |
| Dickinson | $1,755 |
| Clark | $1,452 |
| Hamilton | $1,464 |
| Johnson | $3,843 |
| Lincoln | $1,294 |
| Jackson | $2,032 |
| Lyon | $1,834 |
Kansas motor tax
Wherever you move, transportation should factor into your planned expenses. Buying and registering a car or another titled vehicle in Kansas will see you paying sales tax of between 7.3 percent and 8.775 percent, plus up to one percent in local sales taxes. You’ll then need to cover personal property tax each year. The cost of this will depend on the specifics of your vehicle, including make, model and year.
Finally, to keep your car running and get you where you need to go, you’ll need to pay for your fuel and the accompanying tax. Gasoline is taxed at $0.24 per gallon in Kansas, while diesel is taxed at $0.26 per gallon.
Kansas estate tax
Death taxes must be considered, even if the topic is one we’d prefer to put off. Thankfully, Kansas doesn’t have a state-level inheritance or estate tax, so you have no extra financial requirements to contend with beyond federal rules and regulations.
Kansas is one of 38 states without any estate tax, and federal estate tax won’t affect you unless your estate is over $12.92 million, or $25.84 million for married couples.
Kansas retirement tax
If you’d like to click your heels and head to Kansas for your golden years, you’ll need to know whether the state is what one might consider “retiree friendly.”
Social Security is only taxable in Kansas for taxpayers with an annual income over $75,000. Before that point, it’s exempt. Similarly exempt is any income from a public pension, though revenue from private pensions will be fully taxed as appropriate.
Regarding particular stipulations and exceptions for older people in Kansas, you could argue that the state wasn’t very “friendly.” But don’t forget the bigger picture of the state, in which the cost of living is low, and the price of buying property is very reasonable. You can also check out the complete guide to retirement in Kansas here.
For further tax guidance and to ensure you’re not paying more tax than you need to, it’s wise to speak to an expert. A financial advisor can help you handle all your tax queries and ensure you’re not paying more tax than needed.
Senior Content Writer
Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.