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Taxation

Every attempt has been made to provide current, accurate, and consistent data in this database. There may be some differences due to sources, methodologies, or timing of data-assembly.

Application and Recording Fees

At the time of filing articles of incorporation, each domestic corporation (any corporation organized under Kansas law) pays an application and recording fee of $90 to the Secretary of State.

A corporation classified as foreign (any corporation organized under the laws of another state) must pay a filing fee of $115 to the Secretary of State to obtain a certificate of authority to do business in Kansas.

Corporate Income Tax

For corporations whose facilities are solely within state boundaries, the tax is 4.00% of net income. In addition, net income in excess of $50,000 is subject to 3.35% surtax.

Effective July 1, 2008, the top corporation income tax rate, which is effective for taxable incomes above $50,000, is reduced from 7.35% to 7.10%, effective for tax year 2008; to 7.05% for tax years 2009 and 2010; and to 7.00% for tax year 2011 and thereafter.

For those corporations having facilities both inside and outside the state, the net income attributed to the Kansas operation is based upon the percentage of the corporation's business located in Kansas. A business' tax obligation is determined by a three-factor formula using the proportion of sales, property, and dollar payroll attributable to the Kansas facility.

Corporations may opt to use a "two factor" (sales and property) apportionment formula to calculate tax liability if the payroll factor for a taxable year exceeds 200% of the average of the property and sales factors. Also, state law allows net operating losses to be carried forward to each of the ten years following the taxable year of the net operating loss.

Individual Income Tax

Rates for married individuals filing joint returns:
3.5% on first $30,000 income
$1,050 plus 6.25% of income over $30,000 up to $60,000
$2,925 plus 6.45% of income over $60,000

Rates for individuals:
3.5% of first $15,000 income
$525 plus 6.25% of income over $15,000 up to $30,000
$1,462.50 plus 6.45% of income over $30,000

Nonresidents pay taxes equal to the amount computed as though they were residents. The result is multiplied by the ratio of modified Kansas-source income to Kansas adjusted gross income.

Franchise Tax

Corporations in Kansas are assessed an annual franchise tax at the rate of 0.125% of the total net worth. In addition, an annual franchise fee of $55 must be paid to the Secretary of State's office.

Tangible Property Tax

Both real and tangible personal property are subject to ad valorem taxation by cities, counties, and special taxing districts. Intangible property is classified and taxed separately. All property is appraised at its fair market value.

The rate of tax depends on the levy of the local taxing district and will vary within the state by location. Both real and tangible personal property are assessed by the county assessor in the taxing district in which the property is located. Taxes are paid to the county treasurer.

Property taxation is administered by the Division of Property Valuation of the Department of Revenue together with local taxing officers. Public utilities are treated separately for property tax purposes. Utility property is assessed and apportioned by local taxing districts by the Division of Property Valuation.

Aircraft used regularly and exclusively in the conduct of business are exempted from property or ad valorem taxes.

Property Tax Formula for Commercial and Industrial Property

1. Appraised Value X Classification Rate = Assessed Value
2. (Assessed Value/1000) X Mill Levy Rate = Property Tax

Major Classes of Property:

Intangible Property Tax

Cities, counties, and townships are allowed to levy taxes on intangible property. Counties may tax such property at a rate of up to 0.75%, and cities or townships may impose an intangible property tax of up to 2.25%. The total intangible property tax burden of any individual or business cannot exceed three percent. In practice, most local governments have no tax on intangible property. One-third of the counties in Kansas, less than one-fifth of the cities, and about one-third of the townships impose such a tax. There is no Intangible Property Tax assessed in Topeka/Shawnee County.

Sales and Use Tax

The Kansas sales and use tax is 5.3% of the sale price of tangible personal property and taxable services sold at retail to the consumer. Cities and counties may collect an additional maximum of one percent on each of the base rates noted above. In some cases, cities and counties can receive permission from the Kansas Legislature to exceed the 1% limit. The current sales tax rate for the City of Topeka is: 6.3% state, plus 1.5% city, .50% county, and .65% Washburn University for a total of 8.95%. (Effective July 1, 2010.)

Sales Tax By Zip Code pdf

City of Topeka Personal Property Tax

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Shawnee County Personal Property Tax

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