Research Areas
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 8 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 2009, Kansas taxpayers had to work until April 8 (ranked 30th nationally) to pay their total tax bill, five days before national Tax Freedom Day (April 13). The Tax Freedom Days of neighboring states are: Nebraska, April 8 (31st); Missouri, April 6 (34th); Oklahoma, April 4 (40th); and Colorado, April 12 (16th).
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' 2009 Business Tax Climate Ranks 31st
Kansas ranks 31st 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 (42rd), Missouri (16th), Oklahoma (18th), and Colorado (13th).
50-State Comparison of Business Tax Climates (data only)
2009 State Business Tax Climate Index, Sixth 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 19th highest among states levying an individual income tax. Kansas's 2006 individual income tax collections were $874 per person, which ranked 22nd 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 7.1%, kicking in at an income level of $50,000. Among states levying corporate income taxes, Kansas' rate ranks 24th highest nationally. In 2007, state-level corporate tax collections (excluding local taxes) were $191 per capita, ranking the state 15th highest among states that tax corporate income.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita and Per Household
50-State Table of State Corporate Income Tax Collections Per Capita
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 5.5%.State and local governments combined collected approximately $1,029 per capita in general sales taxes in 2006, ranking 15th nationally. Kansas's gasoline tax stands at 25 cents per gallon, which ranks 21st 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 Tax Collections Per Capita and Per Household
50-State Table of State and Local General Sales and Gross Receipts Tax Collections Per Household and Per Capita
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 $1,167.34 per capita in property taxes in fiscal year 2006, the latest year for which the Census Bureau has published state-by-state data. At the state level, Kansas collected $23.73 per capita during FY 2006, making its combined state/local property taxes $1,191.07 per capita, which ranks 19th highest nationally.
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
