Taxes
The tax environment in Kansas is designed to be fair and favorable to your business. Our tax base ensures that no single industry is disproportionately burdened, and tax credits and exemptions are helping to lower the cost of doing business in Kansas.
No matter the industry, Kansas is dedicated to saving companies money and providing a pro-growth environment for business.
Kansas files several types of business fees and attaches a different filing fee for each formation document. For example, there is a $85-$90 filing fee for domestic for profit corporations and a $75 filing fee for foreign (non-Kansas) corporations. Each year business entities are required to file an annual report and pay a filing fee. The articles of formaation may be amended by filing the appropriate amendment document with a filing fee. Many business filings may be completed electronically. Please visit the Business Filing Center. Paper forms are available in the Filings & Forms section of the website.
The state of Kansas has no corporate franchise tax.
For corporations whose business income is solely within state boundaries, the tax is 4% of net income. In addition, net income in excess of $50,000 is subject to a 3% percent surtax. A business’ tax obligation is determined by a three-factor formula using the proportion of sales, property and payroll in Kansas compared to total sales, property and payroll.
The rate of tax depends on the levy of the local taxing district and will vary within the state by location. There are several property tax exemptions that may be available to businesses for certain qualifying real and tangible personal property.
The sales tax is the total of state and local rates and is applied to all retail purchases plus taxable services sold at retail to the consumer. Kansas levies a 6.5% sales and use tax. If applicable, an additional levy may be imposed by the city or county in an amount that will vary.
If the sale or use of property has already been subject to a tax of less than 6.3% by any state, then the tax is the differnce between 6.3% and the tx that has already been imposed.
Unemployment Insurance (UI) is a state-operated insurance program designed to provide temporary and partial financial assistance to replace lost wages to Kansas workers when they are unemployed through no fault of their own and meet the requirements of State law.
The Kansas Department of Labor Workers Compensation Division is responsible for the administration of the Kansas Workers Compensation laws and rules. Our goal is to ensure employees injured at work, employers, health care providers and insurance carriers receive timely, impartial and fair claim resolution. The present law covers all Kansas employers except for those in certain agricultural pursuits or those with a gross annual payroll of $20,000 or less. All payroll is taken into account, including that paid in Kansas or elsewhere.
