The Tax Foundation

Tax Data

Kansas

The Facts on Kansas’ Tax Climate

Here are some basic facts on Kansas’s tax system and how it compares to other states:

Tax Freedom Day Arrives on April 18 in Kansas
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2008, Kansas taxpayers had to work until April 18 (ranked 26th nationally) to pay their total tax bill, five days before national Tax Freedom Day (April 23). The Tax Freedom Days of neighboring states are: Nebraska, April 19 (25th); Missouri, April 14 (36th); Oklahoma, April 11 (43rd); and Colorado, April 23 (15th).

Tax Freedom Day has been projected using the most up-to-date economic and budget projections from official government agencies. However, Tax Foundation estimates of average state and local tax rates for 2008 will not be released until later this spring as we await more up-to-date data from various government agencies.
Full study of Tax Freedom Day, nationwide and in each state

Kansas' State/Local Tax Burden Slightly Below National Average
Estimated at 9.6% of income, Kansas' state/local tax burden percentage ranks 21st highest nationally, just below  the national average of 9.7%. Kansas taxpayers pay $3,911 per capita in state and local taxes.
Kansas' State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2008

Kansas' 2008 Business Tax Climate Ranks 31st
Kansas ranks 33rd in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. The ranks of neighboring states were as follows: Nebraska (43rd), Missouri (15th), Oklahoma (19th), and Colorado (13th).
50-State Comparison of Business Tax Climates (data only)
2008 State Business Tax Climate Index, Fifth Edition (full study)

Kansas' Individual Income Tax System
Kansas's personal income tax system consists of three separate brackets with a top rate of 6.45%, kicking in at an income level of $30,000. That top rate ranks 21st highest among states levying an individual income tax. Kansas's 2005 individual income tax collections were $746 per person, which ranked 27th highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita

Kansas' Corporate Income Tax System
Kansas's corporate tax structure consists of two brackets with a top rate of 7.35%, kicking in at an income level of $50,000. Among states levying corporate income taxes, Kansas' rate ranks 23rd highest nationally. In 2006, state-level corporate tax collections (excluding local taxes) were $137.93 per capita, ranking the state 28th highest among states that tax corporate income.
50-State Table of Corporate Income Tax Rates, 2000-2008
50-State Table of State and Local Corporate Income Tax Collections Per Capita and Per Household, 2005
50-State Table of State Corporate Income Tax Collections Per Capita, 2006

Kansas Levies Sales Tax Slightly below National Median
Kansas levies a 5.3% general sales or use tax on consumers, which is just slightly below the national median of 5.4%. State and local governments combined collected approximately $1,266 per capita in general sales taxes in 2005, ranking 21st nationally. Kansas's gasoline tax stands at 25 cents per gallon, which ranks 20th highest nationally. Kansas' cigarette tax stands at 79 cents per pack of twenty and ranks 32nd nationally. The sales tax was adopted in 1937, the gasoline tax in 1925 and the cigarette tax in 1927.
50-State Table of Sales and Excise Tax Rates
50-State Table of State and Local General Sales and Gross Receipts Tax Collections Per Household and Per Capita, Fiscal Year 2005

Kansas Property Taxes: Above Average
Kansas is one of the 37 states that collect property taxes at both the state and local levels. As in most states, local governments collect far more. Kansas' localities collected $3,189,062,000 in property taxes in fiscal year 2004, the latest year for which the Census Bureau has published state-by-state data. At the state level, Kansas collected $57,554,000 in property taxes during FY 2004, making its combined state/local property taxes $3,246,616,000. That brings its per capita collection to $1,187, ranking 14th highest nationally. In FY 2002, Kansas was ranked 24th.
State property tax collections per capita by state

Federal Tax Burdens and Expenditures: Kansas is a Beneficiary State
Kansas taxpayers receive more federal funding per dollar of federal taxes paid compared to the average state. Per dollar of Federal tax collected in 2005, Kansas citizens received approximately $1.12 in the way of federal spending. This ranks the state 22nd nationally and represents a rise from 1995 when Kansas received $1.05 per dollar of taxes in federal spending (ranking 27th nationally). Neighboring states and the amount of federal spending they received per dollar of federal taxes paid were: Nebraska ($1.10), Missouri ($1.32), Oklahoma ($1.36), and Colorado ($0.81).
Comparing the amount of federal taxes sent to Washington with the amount of federal spending coming back to the state

Tax Data from The Tax Foundation