Kansas does not tax capital gains separately. A gain from stocks, a business or real estate is part of your federal adjusted gross income, and Kansas taxes it with the rest of your income using a two-rate schedule. A gain is often taxed at 5.58%, because it can push income above the $23,000 single or $46,000 joint line. Three points are worth knowing: the rate schedule is written into statute and has no 2026 cut, nonresidents are taxed only on the Kansas share of income (and stock gains are generally not Kansas-source for them), and a 2026 bill to exempt gains on gold and silver coin was vetoed.
Kansas statute K.S.A. 79-32,110 sets the schedule for resident individuals for tax year 2024 and all tax years thereafter. Because a capital gain is simply part of Kansas taxable income, these are the rates it meets.
| Filing status | 5.2% on taxable income | Above that |
|---|---|---|
| Single, head of household, married filing separately | Up to $23,000 | $1,196 plus 5.58% of the excess over $23,000 |
| Married filing jointly | Up to $46,000 | $2,392 plus 5.58% of the excess over $46,000 |
The statute applies the schedule unless it is modified under K.S.A. 79-32,110c, the contingent rate-reduction law (next section). The statute taxes estates and trusts at the single schedule.
Senate Bill 269 of 2025, codified as K.S.A. 79-32,110c, allows future cuts. Every August 15 the Director of the Budget checks whether general fund collections exceed inflation-adjusted base-year revenues and the rainy-day fund is at least 15% of the prior year's state tax receipts. If both tests are met, any cut applies first to individual income tax rates, reducing all rates in proportion until the lowest rate is 4%.
The Department of Revenue's Notice 25-06 (2 October 2025) says collections fell short and that there will be no rate reduction for tax year 2026. Notice 26-11 (15 October 2026) says the same for tax year 2027. So the 5.2% and 5.58% rates stand for 2026 and 2027. We found no 2026 law that changes the individual schedule. A future August determination could change this.
The statute defines Kansas adjusted gross income as federal adjusted gross income with the modifications in the section, and line 1 of Form K-40 is federal adjusted gross income as reported on your federal return. A gain reported federally is therefore in your starting figure. Schedule S Part A is for income that is taxable federally but not by Kansas, or the reverse.
We found no general Kansas exclusion or lower rate for long-term gains. The modifications we read that touch gains are narrow: a subtraction for gain or loss where your Kansas basis in property is higher than your federal basis (limited to the difference, and for long-term gain limited to the part included in federal adjusted gross income), and a subtraction for gain from the sale of Kansas turnpike bonds that was included in federal adjusted gross income. The statute lists other asset-specific items that we did not rely on, so check the current Schedule S instructions for your asset.
The federal system distinguishes them. IRS Topic 409 says a gain or loss is generally long-term if you hold the asset more than one year, and that if you have a net capital gain a lower tax rate may apply than the rate on ordinary income. Kansas does not copy that preferential treatment in any rule we found: the Kansas schedule has two rates by income level and nothing that depends on how long you held the asset.
We found no Kansas-specific capital loss rule in the sources we read. Because Kansas starts from federal adjusted gross income, the federal result flows into the Kansas return. IRS Topic 409 says that if capital losses exceed gains, the loss you can claim to lower your income is the lesser of $3,000 ($1,500 if married filing separately) or your total net loss, and that an excess net capital loss can be carried forward to later years. It also says losses from the sale of personal-use property, such as your home or car, are not tax deductible. The Kansas booklet does not restate these limits, so confirm with the Department if a large loss is involved.
We found no separate Kansas home sale rule. IRS Topic 701 says you may qualify to exclude up to $250,000 of the gain on the sale of your main home from your income, or up to $500,000 if you file a joint return with your spouse. Because Kansas starts from federal adjusted gross income, a gain excluded federally is not in your starting figure, though the Department does not say this in so many words. Any gain above the exclusion is taxed at the schedule above.
This table is our arithmetic, not an official calculation. It applies the statutory schedule above to the extra tax a gain adds when it sits on top of your other Kansas taxable income, ignoring credits, exemptions and adjustments, rounded to the nearest dollar. A gain that crosses the bracket line is partly taxed at 5.2%, so its average rate is below 5.58%.
| Filing status | Other Kansas taxable income | Capital gain | Added Kansas tax | Average rate on the gain |
|---|---|---|---|---|
| Single | $40,000 | $10,000 | $558 | 5.58% |
| Single | $10,000 | $30,000 | $1,625 | 5.42% |
| Married filing jointly | $100,000 | $50,000 | $2,790 | 5.58% |
| Married filing jointly | $20,000 | $40,000 | $2,133 | 5.33% |
A Kansas resident who pays tax to another state on income included in Kansas adjusted gross income may claim a credit for it, under the booklet's rules for taxes paid to other states.
For nonresidents, the statute says the tax is the amount computed as if the nonresident were a resident, multiplied by the ratio of modified Kansas source income to Kansas adjusted gross income. The booklet says a nonresident who received income from Kansas sources must file a Kansas return regardless of the amount, and completes Part B of Schedule S, where the allocation percentage cannot exceed 100%.
What counts as Kansas source matters for gains. The booklet says Kansas source income includes income from real or tangible personal property located in Kansas, so a gain on Kansas real estate is Kansas-source. It also says a nonresident's Kansas source income does not include gains from the sale or exchange of intangible property, such as bank accounts, stocks or bonds, unless earned by a business, trade, profession or occupation carried on in Kansas. A part-year resident filing as a nonresident includes items of income, gain or loss received while a Kansas resident, whether or not from Kansas sources.
House Bill 2515 of 2026 would have provided an income tax subtraction for gains from the sale of specie (gold and silver coin). Governor Kelly vetoed it by a message dated 27 April 2026. The statute text we read contains no such subtraction, so treat a gain on precious metals as taxable at the normal rates unless the Department says otherwise.
We read these sources in November 2026. The booklet is for tax year 2025; a 2026 booklet was not available when we checked.