Calculating your Kansas state income tax can cause quite a headache. Between your earned wages and personal withholdings, tax credits and standard deductions, it can seem like there’s an endless list of steps involved when it comes to estimating your financial obligation to the state. Save yourself the stress and hassle this tax season with our easy-to-use Kansas income tax calculator. Simply plug in a few numbers and we’ll take care of the hard work so you can see how much you owe in a matter of minutes.

We’re going to break down all the components of Kansas state taxes, but before we dive into detail, let’s take a moment to clarify what state taxes are and how they compare to your federal income tax obligation.

Unfortunately, you read that right. If you weren’t already aware, most United States citizens get hit with two tax bills come April: one assessed by the federal government and collected by the Internal Revenue Service (IRS), and the other levied by the state in which income is earned, sales are made, and/or property is owned.

Not all state taxes across the U.S. are one-and-the-same, so the income tax you face in the Sunflower State is very different from what the West Coast taxpayers are paying in California. The federal government gives each state the power to choose which taxes to impose on their citizens, including who and what is exempt from taxation. Let’s take a look at how Kansas stacks up against the other states in three major categories.

The income tax in KS is progressive, ranging from as little as 3.10% to as high as 5.70% depending on how much you earn and your tax filing status. You can use our Kansas tax calculator to get an estimate of what you can expect to owe on your return. Compared to the rest of the country, these rates are pretty standard. Sure, income tax rates in California start as low as 1% but the top-earning residents are taxed at a whopping 13.3%. Of course, there are some states that don’t impose an income tax at all — like Texas and Florida — but states like these earn their revenue in other ways.

In addition to Kansas state income tax, residents pay a sales tax of 6.50% on purchased goods and homeowners will pay a property tax ranging between 1.09% and 2.17% depending on the county. The tax revenue collected by the state primarily goes toward funding K-12 education, but funds are also spent on protecting environment projects, maintaining infrastructure, repairing roads, providing public transportation, and assisting low-income families with medical and housing expenses.

No one particularly enjoys having money taken from their hard-earned income — especially at two different levels, both state-wide and federally — but the next time you take in the beautiful Smoky Hills at Kanopolis State Park, ride the public bus to the KU Jayhawks game, or apply for financial assistance at Saint Luke’s hospital, remember that you and your fellow Kansas taxpayers make it all possible.

Kansas has a progressive tax structure, meaning the more money you make, the higher tax you pay. Low-income residents catch a bit of a break because the higher tax rates don’t kick in until you reach a certain income level. In the Sunflower State, the highest tax rate only applies to incomes over $30,000. This is in contrast to states that impose a flat income tax — such as Colorado and Michigan —- where everyone gets taxed at the same rate, regardless of how much or how little you earn. The federal tax code is also progressive, but it’s broken into seven marginal tax brackets whereas Kansas is divided into three.

The lowest tax bracket is 3.1%, the next is 5.7%. Each marginal rate only applies to earnings within the applicable bracket. So, if you’re filing a single tax return and your earnings are between $2,500 and $15,000, that income will be taxed at 3.1%. For earnings between $15,000 and $30,000, you’ll pay 5.25% plus a marginal percentage. Any income over $30,000 is assessed a 5.7% tax, in addition to the taxes from each marginal bracket.

Technically speaking, you don’t have just “one” tax bracket — you pay all three. However, the steeper rates only apply to higher earnings. Married couples filing a tax return in Kansas have wider tax brackets than single filers to account for dual incomes. In their case, the highest 5.7% marginal tax rate will apply to earnings over $60,000.

Note: This information is accurate as of the 2018 tax year; the income tax in Kansas changed in 2016. The brackets were increased from 2.9%, 4.9%, and 5.2% respectively. If you fell behind on your taxes and need to file a late return, these are the rates you would pay on income earned up until 2015.

Unless you’re self-employed, your employer will typically withhold your federal and state income taxes from your paycheck based on the information you report on your W-4 Form. That document reports your filing status (single or married), number of dependents, and the amount of allowances withheld. Your withheld income is applied to your annual tax bill. The more allowances you claim, the less money is withheld for taxes and the higher your take-home pay will be.

Be careful, though. It might sound nice to have a few extra dollars padding your income every month, but if you claim too many allowances and don’t withhold enough money from your paychecks, you might wind up facing a large tax bill in April. Without funds set aside to settle your tax bill, you could end up in back tax debt loaded with interest and fees. For that reason, many taxpayers choose to err on the side of caution and have too much withheld from their pay versus too little. Doing so usually leads to a large tax return when the IRS gives back the money you overpaid throughout the year.

Now might be a good time to check out your W-4 to confirm you’ve claimed the correct allowances and that no information has changed, especially because Trump’s Tax Cuts and Jobs Act reformed the withholding calculations and changed how much tax will be deducted.

Unfortunately, personal income taxes aren’t the only taxes removed from your paycheck. You also pay 6.2% of wages to Social Security and 1.45% to Medicare — unless you earn more than $200,000, in which case you pay an additional 0.9% Medicare surtax. Collectively, these are referred to as FICA taxes; they’re federally assessed and, unfortunately, you will not see them returned once they’re deducted from your paycheck.

Employers handle the collection and submission of their employees’ taxes, but remember: you might still own Kansas state tax and federal income tax at the end of the tax year if you miscalculated your allowances per tax bracket. But what if you’re self-employed?

Even though you’re not issued a paycheck from your employer, you’re still responsible for federal and Kansas state income taxes if you make $400 or more within a tax year. Kansas does not have an additional self-employment (SE) tax, but they do tax your net earnings as part of your standard income. The IRS, alternatively, collects an SE tax in addition to income tax in order to account for Social Security and Medicare taxes. You can use our Kansas tax calculator to get an idea of what your overall bill might look like.

Finally, there is some good news: there are no local taxeson wages earned in Kansas, unlike the New York taxpayers who get hit extra hard for working within the NYC metropolis. However, investors might have to pay intangible taxes on interest, dividends, and securities transactions depending on the city or township you live in. Capital gains earned on investments are taxed as ordinary income, with both short- and long-term gains subject to the top rate of 5.7% in the 2018 tax year.

States like Oregon don’t impose sales tax on their residents, but if you live in the Sunflower State, you can expect to pay at least 6.50% or more on anything you buy. That’s the minimum state-wide sales tax in Kansas, but cities, counties, and in some cases, special rates in certain districts, have the power to add an additional local tax of their own.

As of October 1, 2019 there have been several changes to local sales and use tax rates. For example, Lousiburg now has a combined rate of 9.50%, while shoppers in Neodesha, Ness City, and Winfield pay an 8.50% tax on the items they buy. There are over 900 sales tax jurisdictions in Kansas; if you want to save money on purchases made within the state, avoid the following locations:

• Goody’s Plaza in Junction City
• The Holiday Inn in Coffeyville
• The Downtown Hotel or First City Hotel in Leavenworth
• 4Love’s Travel Stop in Chanute

These places are located within special jurisdictions that charge 11.50%, the highest sales tax in Kansas. If you thought you could save money by heading to a state like Oregon where sales tax does not exist, you should think twice. Whatever merchandise you buy out-of-state will be subject to the consumers’ compensating use tax if you bring it back across the Kansas border.

Some states with strange tax laws impose taxes on odd items, like in New York, where an open-faced bagel ready and prepared for consumption will run an additional 0.08% tax. The Sunflower State has its own unique laws and the tax rate may vary depending on the type of purchase. Some different types of taxes in Kansas include the rental tax, lodgings tax, and seller’s use.

Traditional sales taxes in Kansas are based on a percentage of the listed price. For example, if you bought a shirt for $25.00 where the local sales tax was 10%, you would pay an extra $2.50 during the transaction. Excise taxes work a little differently; they’re assessed at a flat rate for certain products, no matter what the cost is. Excise taxes are sometimes called “sin taxes” because they’re imposed on items as a way to discourage consumers from partaking excessively, such as alcohol and tobacco.

Kansas Alcohol Tax

If you like to imbibe in downtown Topeka or anywhere in KS, be prepared to pay extra for whatever you consume. Merchants are responsible for paying the alcohol excise tax in Kansas, but the cost is passed onto consumers at the time of sale. Beer is taxed at $0.18 per gallon, wine is taxed at $0.30 per gallon, and liquor is taxed at $2.50 per gallon.

Kansas Tobacco Tax

The tobacco tax in Kansas is a fairly lenient at an additional $1.29 per pack of 20 cigarettes. This ranks 32nd highest in the U.S. with the most expensive tobacco tax located in the District of Columbia ($4.50/pack) and the cheapest in Missouri ($0.17/pack).

Kansas Motor Fuel Tax

Motor fuel is taxed in Kansas in addition to the tax imposed at the federal level. Drivers currently pay an additional $0.24 per gallon (excluding the federal gas taxes). A large portion of this revenue goes towards building and maintaining roads and bridges.

As of 2019, there is no longer a federal penalty for lack of health insurance, however some states still penalize uninsured taxpayers on their tax returns. Kansas has not yet established their own state-wide health insurance requirement. Thatsaid, all insurance companies pay a state tax based on the premiums they collect from policyholders, which may in turn be passed onto consumers.

In the 2018 tax year, Kansas collected $408,321 in revenue from insurance taxes.

Kansas residents are subject to an annual property tax called a mill levy which refers to the “tax rate” applied to the assessed property value. One “mill” is equivalent to one dollar per every $1,000 in value. Property values are assessed on a case-by-case basis and homeowners have seen them on the rise over recent years.

On average, the effective property tax rate in Kansas is 1.40% based on the percentage of annual household income. The lowest property tax in KS is located in Pottawatomie County at 1.09% while the highest is in Smith County at 2.17%. You can find information on the average mill levies by county on the Kansas Department of Revenue website to have a look at what rate you might expect to pay.

Fortunately, to offset the cost of property taxes, Kansas offers a homestead refund which is a rebate program for the property taxes paid by homeowners. The maximum refund amount is $700, based on a portion of the property tax bill. Kansas also offers a property tax relief program for low income seniors.

Some states charge an inheritance tax, but the Kansas Legislature made significant changes to this tax back in 2006. After the law went into effect, estates of decedents dying after 2009 are no longer subject to the Kansas estate tax.

Finally, some good news: Kansas offers a long list of tax credits to relieve the residents in the Sunflower State and promote economic growth. Credits are subtracted from your liability and reduce the amount of taxes you owe dollar-for-dollar. Here are some common Kansas tax credits unique to the state that you may be eligible to claim:

• Angel Investor Tax Credit
• Disabled Tax Credit
• Center for Entrepreneurship Credit
• Low Income Students Scholarship

Tax credits are used to stimulate certain industries while helping individuals and businesses save money on taxes. Talk to one of our tax professionals to ensure you find claim every Kansas tax credit you’re eligible for.

Tax deductions and tax credits both reduce your overall bill, but deductions work a little differently. They lower your overall taxable income, which could drop you into a lower tax bracket with a reduced tax rate. A standard deduction may be claimed if you did not file an itemized return; the amount you claim, based on filing status, will not be subject to taxation.

If you’re a single filers in KS, you can automatically deduct $3,000 unless you have been claimed on someone else’s return, such as your parents. In that case, the standard deduction is $500 or the amount of your income earned up to $3,000 — whichever is less.

Both the IRS and the Kansas Dept. of Revenue offer significant tax advantages for married couples who file joint tax returns. In addition to the $7,500 standard deduction, you may claim an additional $700 if your spouse is 65 years or older.

If you itemized deductions on your federal tax return, you may choose to do so on your Kansas state tax return. You may also claim the same number of personal exemptions as you did on your federal return — unless you filed as Head of Household or Qualifying Widow(er), in which case you may claim one additional exemption. Once you determine your number of exemptions, multiply your claims by $2,250 to calculate your personal allowance.

The easiest way to estimate your refund is by using our Kansas income tax calculator. Doing so will allow you to plug in your annual income and select your filing status to generate an estimated bill. If you want to try your own calculations, follow these steps:

• Start with your annual gross income
• Include your deductions to reach your adjusted gross income (AGI)
• Multiply your income by each marginal tax bracket
• Deduct eligible tax credits to estimate your liability
• Compare your taxes withheld to your taxes owed

The end figure should give you an idea of the tax return you may receive, or the amount you may still owe.

The Kansas Dept. of Revenue no longer produces or distributes paper documents so all instructions, sample tax forms, and schedules are posted on their website. Or, you can take advantage of the free KS WebFile tool that provides an online application for filing Kansas income tax returns. If you owe taxes to the state, you can pay via direct debit, credit card (MasterCard, Discover, or American Express), or check or money order.

Estimated tax payments are required for income not subject to withholding, such as:

• Self-employment income
• Unemployment benefits
• Interest
• Dividends
• Income earned in another state while living in Kansas

Use Form K-40ES for instructions on how to submit estimated tax payments in Kansas, which are due every quarter.

As you make use of our Kansas income calculator, keep in mind that your federal tax liability is completely separate from your state liability. Failure to pay either bill on time will lead to fees or interest accrued on any outstanding balance. It’s better to file taxes and pay what you can upfront to avoid the failure to file penalty. You may also consider asking for an extension to file your tax return.

This information is accurate as of 2019. Special circumstances that can affect your tax return may apply.

Sources:

Finney County A Homeowner’s Guide to Property Tax in Kansas; KS Dept. of Revenue ABC Wet/Dry Map, FAQS, Personal Tax Types, Sales Rate Changes, Tax Credits, Tax Brackets Kansas Tax Table; Tax Rates Kansas;