Kansas is a pro-business, low tax state

Taxes

Kansas Corporate Income Tax
4.00% of Kansas taxable net income plus 3.00% surtax (2011) on taxable net income in excess of $50,000 (marginal rate 7.00%.) Only the proportion of net income generated within the state is subject to Kansas income tax. A three-factor formula relating sales, payroll and property to the Kansas facility is generally used to determine Kansas taxable net income. With prior approval, a two-factor formula (sales and property) may be elected if the payroll factor exceeds 200% of the average of the sales factor and property factor values in the state. Such an election is binding for 10 years.

Unemployment Insurance
Rates apply to the first $14,000 of each employee’s annual wages. The year 2017 new employer rate is 6.00% for the construction sector and 2.70% for all other sectors. Employers qualify for experience rating after 3 to 4 years of operation. The 2017 experience rate range for positive balance employers is 0.20% to 5.40% based entirely on experience rating. Year 2017 experience rates for negative balance employers range from 5.60% to 7.60%.

Unemployment Rate Table

Workers' Compensation
Kansas manufacturing work comp rates are nearly 16% below the national average. Worker's compensation premiums are determined by applying the rate for a specific occupation, per $100 of payroll, to the annual wage per employee. Businesses can obtain worker's compensation insurance from private insurance companies or, upon application, become self-insured. A worker’s compensation pool, the Kansas Employers Workers Compensation Fund, is available for qualified companies. For more information and specific occupation rates contact Patricia Songer, Midland Management toll-free at (888) 799-5712.

 

Retail Sales and Use Tax

 

City of Wichita

0.00%

Sedgwick County

1.00%

State

6.50%

Total

7.50%

 

Sales Tax Exemption

Prior application for a Project Exemption Certificate can be made under the High Performance Incentive Program (HPIP.) If approved, this permits 100% sales tax exemption on items used to construct, build-out, remodel, furnish and equip the worksite. Such exemption covers all eligible taxable purchases of capital investment made by the entity submitting the application. Alternatively – if IRBs are utilized – sales tax exemption can be provided for IRB-financed purchases subject to local governing body approval. Click here for more information and to download project and utility sales tax exemption application forms.

Telecommunications Sales Tax

Both local telephone calls and long distance calls (intrastate and interstate) are subject to 6.3% State sales tax and 1.0% Sedgwick County sales tax. Non-WATS* "800" number calls (both intrastate and interstate) are taxed in exactly the same fashion as numbers with other prefixes. There are no State of Kansas, Sedgwick County or City of Wichita taxes specific to "800" numbers. The only difference is that “800” prefix numbers incur no charge to the caller. Interstate WATS telephone service (including WATS-based "800" service), dedicated lines and computer access service (data lines) are exempt from sales tax. WATS lines are declining technology. The majority of "800" service is not provided via (inward) WATS lines, and is therefore subject to sales tax. 

* WATS -- Wide Area Telephone Service Long distance service provided by various carriers that includes both intrastate and interstate service for outgoing and incoming (800) calls. WATS provides a bulk savings plan for companies with a high volume of toll calls, such as telemarketing. WATS charges include a flat rate for each hour of calling time, with cost per hour decreasing as toll usage increases.

Corporate Franchise Tax

This annual tax on corporations in Kansas was repealed in tax (calendar) year 2011. There is no longer a Kansas corporate franchise tax.

Motor Fuels Tax

Moter Fuels Tax

 

Gasoline/Gasohol

$0.24 per gallon

Diesel

$0.26 per gallon

Liquefied Petroleum Gas

$0.23 per gallon

Kansas Personal Income Tax -- Standard Deductions

 

Married filing jointly

$7,500

Married filing separately

$3,000

Single Head of Household

$5,500

Single

$3,000

 

Kansas allows personal exemptions of $2,250 for each personal exemption allowed under federal income tax laws. An additional exemption is allowed in Kansas if you file as head of household on a federal return.

Note: there is no local (county or city) personal income tax. Both resident and non-resident aliens incur federal and state income tax under the same terms as U.S. citizens (Canadians may take credit on their Canadian tax return.)

Effective Tax Year 2013 – Kansas Personal Income Tax becomes two bracket system:
Kansas Adjusted Gross Income (Married Joint) $0 to $30,000 @ 3.0% and KAGI over $30,000 @ 4.9%.
Kansas Adjusted Gross Income (All Other) $0 to $15,000 @ 3.0% and KAGI over $15,000 @ 4.9%.
The reform increases the standard deduction for single head-of-household filers and married taxpayers filing jointly to $9,000. Other changes include elimination of Kansas Personal Income Tax on non-wage business income of partnerships, limited liability corporations, S corporations and sole proprietorships.

Property Tax

Effective July 1, 2006: Business machinery and equipment newly purchased, leased or moved into Kansas is exempt from property tax. This is of particular benefit to capital-intensive manufacturing operations. The exemption applies equally to manufacturing equipment and office business equipment, furniture and fixtures. Items of business personal property under $1,500 original purchase price are also exempt from property tax regardless of date of purchase.

Effective January 1, 1989: Business inventories (raw materials, goods-in-process and finished goods) are exempt from property tax.

Assessment Percentages

Real Property

 

Commercial/Industrial

25.0%

Residential

11.5%

Agricultural

30.0%

Vacant Lots

12.0%

Tangible Personal Property

 

Commercial-Industrial Machinery & Equipment
(Exempt effective 7-1-06)

0%

Motor Vehicles1

30%

All Other

30%

Ad valorem tax mill levies for City of Wichita

Tax District 6702 - Covers most of Wichita

 

Dollars per $1,000 of assessed value

 

City

32.686

County

29.383

State

1.5

USD 259

46.837

USD 259 Bonds9.441
Total (most areas-2015)119.847

 

Residence Example

 

Assuming house with an appraised value of $150,000

Appraised Value

$150,000

Multiplied by residential assessment rate of 11.5%

x 0.115

Assessed Value (tax base)

$17,250

Divide by $1,000 = 17.25 
Then multiply 17.25 by the mill levy:
17.25 x 119.847 = $2,067.36

Which is the annual property tax

Vehicle Property Tax and Fee Estimator

Business Example: Property tax on $100,000 (appraised value) of commercial real property. 
Business machinery & equipment acquired after June 30, 2006 is exempt from property tax.

Assessment percentage of commercial-industrial real estate = 25%. 
Total mill levy in most areas of Wichita = 119.847 mills (dollars per $1,000 assessed value).

$100,000 x 25% = $25,000 assessed value (tax base). Divide by $1,000 = 25. Then multiply 25 by mill levy (119.847) to arrive at the annual property tax = $2,996.18. Equivalent to 2.996% of appraised market value or $29.96 per $1,000 of appraised value.

Mill levies vary by location – For levies at specific locations contact the Sedgwick County Clerk’s Office – Sedgwick County Clerk

Sedgwick County Appraiser’s Office
 

Home
TRANSLATE SITE