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Kansas Tax Guide 2026: Two-Bracket Income Tax, 6.5% Sales Tax, and Ongoing Tax Reform

KEY INSIGHT
Kansas has a two-bracket income tax system following 2024 reforms: 5.20% on taxable income up to $23,000 (single) or $46,000 (married), and 5.58% on income above those thresholds. The reform replaced the prior three-bracket structure (which had a 3.1% low bracket and 5.7% top bracket). Kansas has one of the highest state sales tax rates in the country at 6.5%, plus local additions that can bring combined rates to 10%+ in some areas. Property taxes average approximately 1.41% effective rate. Kansas has no state estate tax.
At a glance

Key Facts

State Income Tax
Two brackets: 5.20% (up to $23,000 single / $46,000 married), 5.58% (above those thresholds); 2024 reform replaced prior three-bracket system (3.1%/5.25%/5.7%)
Sales Tax
6.5% state rate; local additions up to 4%; combined rates 6.5–10.5% depending on city; grocery tax reduced to 2% in 2024 (then 0% from 2025 per legislation)
Property Tax
Effective average ~1.41% — above national average; significant variation by county; agricultural land has special valuation rules
Estate and Inheritance Tax
No Kansas estate tax; no inheritance tax; only federal estate tax applies ($13.61M exemption per individual in 2024)
Corporate Income Tax
4% on first $50,000 of Kansas taxable income; 7.1% on income above $50,000; applies to C-corporations; no corporate income tax surcharge currently in effect
Business-Friendly Features
No inventory tax; no stock transfer tax; relatively straightforward business registration; agricultural tax incentives; strategic location in center of US
Social Security Exemption
Kansas exempts Social Security benefits from state income tax for taxpayers with federal AGI below $75,000; partial exemption above that threshold
Introduction

Kansas has been in the midst of significant tax policy reform over the past several years, driven by conservative legislators seeking to reduce the income tax burden while maintaining fiscal stability. The state’s 2024 tax reform reduced the number of income tax brackets from three to two and lowered rates, representing a meaningful shift toward a flatter, lower-rate structure. Governor Brownback’s controversial 2012 tax experiment — which eliminated the income tax for most business income and created significant budget shortfalls — loomed over subsequent Kansas tax policy, making legislators cautious about further dramatic cuts.

Kansas’ sales tax structure is one of the most significant for residents. The state’s 6.5% state rate, combined with local additions that can reach 4%+, results in combined sales tax rates exceeding 10% in some Kansas cities — among the highest in the nation. The state historically taxed groceries at the full rate but reduced the grocery tax rate in 2023 and further reductions are planned. For Kansans, understanding the interaction between income tax savings and the high sales tax burden is essential to assessing the state’s overall tax environment.

Section 01

Kansas Income Tax Reform 2024: Two Brackets, Lower Rates, and What Changed

Kansas’ 2024 income tax reform was the culmination of years of debate about how to reduce the state’s income tax burden following the fiscal damage caused by the Brownback tax experiment of 2012–2017. The reform reduced income tax brackets from three to two and lowered rates, providing meaningful relief to middle and upper-income earners.

Kansas Income Tax: Before and After 2024 Reform

Income Range (Single)Pre-2024 Rate2024+ RateChange
$0 – $15,000 (old) / $0 – $23,000 (new)3.1%5.20%Rate raised; threshold expanded to $23K
$15,001 – $30,000 (old middle bracket)5.25%EliminatedBracket removed
Above $30,000 (old) / Above $23,000 (new)5.7%5.58%Rate reduced slightly

The 2024 reform restructured Kansas from 3 brackets (3.1%/5.25%/5.7%) to 2 brackets (5.20%/$23K / 5.58%). The net effect varies by income: the low bracket rate increased (3.1%→5.20%) while the top rate decreased (5.7%→5.58%) and the threshold for the lower bracket expanded ($15K→$23K).

Kansas Income Tax Brackets 2026 (Single Filers)

Taxable IncomeRateTax on Bracket
$0 – $23,0005.20%Up to $1,196
Above $23,0005.58%5.58% on all income above $23,000

Kansas Standard Deduction and Exemptions

Kansas vs Neighboring States

StateTop Income Tax RateSales Tax
Kansas5.58% (top)6.5% state + local
Missouri4.7%4.225% + local
Nebraska4.55% (top, 2026)5.5%
Oklahoma4.75%4.5% + local
Colorado4.4% flat2.9% + local

Kansas’ 5.58% top rate is now below Nebraska (formerly close) and above Missouri, Oklahoma, and Colorado. The very high sales tax rate remains Kansas’ most significant tax disadvantage compared to neighboring states.

Section 02

Kansas Sales Tax: One of the Nation’s Highest, Grocery Tax Elimination, and Local Additions

Kansas’ 6.5% state sales tax rate is among the 10 highest in the United States. Combined with local city and county sales taxes, total rates in major Kansas cities are among the highest nationally. Understanding the sales tax structure is essential for Kansas residents and businesses.

Kansas Combined Sales Tax Rates by City

CityState RateLocal RateTotal Rate
Kansas City, KS6.5%3.25%9.75%
Wichita6.5%1.0%7.5%
Topeka6.5%1.5%8.0%
Overland Park6.5%1.125%7.625%
Lawrence6.5%2.0%8.5%
Manhattan6.5%2.0%8.5%

Kansas Grocery Tax Elimination

Kansas historically taxed groceries at the full 6.5% state rate — making it one of the few states with a full sales tax on food. This was widely criticised as regressive. In 2023, Kansas reduced the grocery tax rate, and the schedule for reduction was:

From 2025 onward, groceries (unprepared food for home consumption) are exempt from the Kansas state sales tax. Local sales taxes may still apply to groceries in some jurisdictions. This represents a significant improvement for lower-income Kansas families who spend a higher proportion of income on food.

Kansas Sales Tax vs Missouri (KC Metro Comparison)

The Kansas City metropolitan area straddles the Kansas-Missouri border, creating an interesting tax comparison. Kansas City, Kansas, and Kansas City, Missouri are literally across the state line from each other. Missouri’s state sales tax rate is only 4.225%, and combined rates in Missouri’s Kansas City area are generally 8.7–8.975% — compared to 9.75% in Kansas City, KS. Over a lifetime of purchases, this difference is meaningful. On $70,000 of annual taxable spending, the difference between 7.5% (Wichita) and 4.8% (Columbia, MO) is approximately $1,890/year.

Kansas Use Tax

Kansas requires residents who purchase taxable goods from out-of-state retailers (without paying Kansas sales tax) to self-report and pay a use tax equal to the applicable Kansas sales tax rate. This applies to online purchases, mail order, and out-of-state purchases brought into Kansas. In practice, major online retailers now collect Kansas sales tax, but smaller vendors and private transactions may still require self-reporting.

Section 03

Kansas Property Taxes, Agriculture, and the Full Tax Picture

Kansas Property Tax Overview

Kansas property taxes are above the national average at approximately 1.41% effective rate. Property taxes fund county governments, school districts, and special districts. Kansas uses a classification system for property taxation, with different assessment ratios for different property types:

Property Tax Rates by Kansas County

CountyApproximate Effective RateAnnual Tax on $250K HomeAnnual Tax on $400K Home
Johnson County (Overland Park, Olathe)~1.14%~$2,850~$4,560
Shawnee County (Topeka)~1.49%~$3,725~$5,960
Sedgwick County (Wichita)~1.40%~$3,500~$5,600
Douglas County (Lawrence)~1.34%~$3,350~$5,360
Wyandotte County (Kansas City)~1.58%~$3,950~$6,320

Johnson County (Overland Park, Leawood, Olathe) is the wealthiest and most populous county in Kansas. Its effective property tax rate of approximately 1.14% is lower than the state average due to higher property values supporting a lower mill rate. Johnson County’s suburban Kansas City communities are among the most desirable in the Kansas City metro.

Agricultural Land and Kansas

Agriculture is fundamental to Kansas’ economy — the state produces more wheat than any other US state and is a major producer of cattle, soybeans, and corn. Agricultural land receives favorable property tax treatment through ‘use value’ assessment (based on agricultural productivity, not market value), which can result in dramatically lower property taxes for farmland than the nominal assessment ratio would suggest. This is important context for landowners and investors in Kansas agricultural real estate.

Complete Kansas Tax Picture

Tax CategoryKansas (Johnson County)Missouri (Jackson County)Nebraska (Omaha)
Income Tax ($150K)~$7,960 (5.58%)~$6,780 (4.7%)~$6,200 (4.55% top)
Sales Tax ($70K taxable)~$5,338 (7.625%)~$5,985 (8.55%)~$5,040 (7.2%)
Property Tax ($350K home)~$3,990~$3,500~$5,250
Estate TaxNoneNoneNone
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FAQ

Frequently Asked Questions

What are Kansas income tax rates in 2026?

Kansas has two income tax brackets following 2024 reform: 5.20% on taxable income up to $23,000 for single filers ($46,000 for married filing jointly), and 5.58% on all taxable income above those thresholds. This two-bracket system replaced a previous three-bracket structure (3.1%/5.25%/5.7%). Standard deductions are $3,500 for single filers and $8,000 for married joint filers. Personal exemptions of $2,250 per person further reduce taxable income.

What is Kansas’ sales tax rate?

Kansas’ state sales tax rate is 6.5%, one of the highest in the nation. Local cities and counties add additional sales taxes, with combined rates ranging from 7.5% in Wichita to 9.75% in Kansas City, KS. Kansas eliminated the state grocery tax effective 2025 — groceries (unprepared food for home consumption) are exempt from the state sales tax from 2025 onward. Prescription drugs are exempt. Local taxes on groceries may still apply in some jurisdictions.

Does Kansas have an estate tax?

No — Kansas has no state estate tax and no inheritance tax. Only the federal estate tax applies to Kansas residents, with a 2024 exemption of $13.61 million per individual. Kansas eliminated its state estate tax years ago.

What are Kansas property tax rates?

Kansas property taxes average approximately 1.41% effective rate statewide — above the national average. Rates vary significantly by county: Johnson County (Overland Park, Olathe) averages approximately 1.14%, Wyandotte County (Kansas City) approximately 1.58%, and Sedgwick County (Wichita) approximately 1.40%. Kansas assesses residential property at 11.5% of appraised value, then applies local mill rates. Agricultural land is assessed at 30% of ‘use value’ rather than market value.

How is Social Security taxed in Kansas?

Kansas exempts Social Security benefits from state income tax for taxpayers with federal adjusted gross income (AGI) below $75,000. For taxpayers with AGI above $75,000, Social Security benefits are partially taxable in Kansas following the federal treatment. Military retirement pay is fully exempt from Kansas income tax. Government pensions (state, federal) have a limited exclusion for certain qualifying retirees.

What was the Kansas Brownback tax experiment and what happened?

Under Governor Sam Brownback, Kansas enacted dramatic income tax cuts in 2012, including eliminating income taxes on pass-through business income (income from LLCs, S-corps, and partnerships). The theory was that tax cuts would generate enough economic growth to offset lost revenue. Instead, Kansas faced significant budget shortfalls, cuts to education and public services, and a fiscal crisis. The legislature eventually reversed most of the cuts in 2017 over Brownback’s veto. The episode made Kansas a cautionary tale in tax policy discussions and has made subsequent Kansas governors more cautious about large-scale income tax reductions.

Is Kansas good for businesses?

Kansas has mixed ratings as a business state. Positives include: no inventory tax (unlike many states), strategic central US location, relatively affordable commercial real estate, and strong agricultural sector. Kansas’ corporate income tax of 4% / 7.1% is moderate but higher than neighboring Missouri (4% flat) or Colorado (4.4% flat). The high sales tax rate can be a competitive disadvantage for retail businesses compared to lower-rate neighboring states. Kansas has various business incentives for job creation, manufacturing investment, and rural development that can offset the base tax rates for qualifying businesses.
Disclaimer:This guide provides general tax information for educational purposes only. Kansas income tax rates, brackets, and sales tax rates are subject to legislative change. The grocery tax elimination schedule was established by legislation and could be altered. Property tax mill rates vary by county, city, and special taxing district and change annually. Always consult a qualified Kansas tax professional before making financial decisions.
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