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 10 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 2011, Kansas taxpayers work until April 10 (ranked 20th nationally) to pay their total tax bill, 2 days before national Tax Freedom Day (April 12). The Tax Freedom Days of neighboring states are: Nebraska, April 12 (15th); Missouri, April 4 (33rd); Oklahoma, April 2 (41st); and Colorado, April 8 (24th).
Full study of Tax Freedom Day, nationwide and in each state
Kansas' State and Local Tax Burden Just Below National Average
Kansas' 2009 state and local tax burden of 9.7% of income is just below the national average of 9.8%. Kansas' tax burden has increased overall from 9.4% (32nd nationally) in 1977 to 9.7% (19th nationally) in 2009. 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
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
Kansas' 2012 Business Tax Climate Ranks 25th
Kansas ranks 25th 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 are as follows: Nebraska (30th), Missouri (15th), Oklahoma (33rd), and Colorado (16th).
50-State Comparison of Business Tax Climates (data only)
2012 State Business Tax Climate Index, Ninth 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 2008 state-level individual income tax collections were $1,057 per person, which ranked 15th 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 7.05%, kicking in at an income level of $50,000. Among states levying corporate income taxes, Kansas' rate ranks 25th highest nationally. In 2008, state-level corporate tax collections (excluding local taxes) were $189 per capita, ranking the state 12th 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 Sales and Excise Taxes
Kansas levies a 5.3% general sales or use tax on consumers, which is below the national median of 5.85%. In 2007 combined state and local general and selective sales tax collections were $1,454 per person, ranking 18th 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 34th nationally. The sales tax was adopted in 1937, the gasoline tax in 1925 and the cigarette tax in 1927.
50-state table of sales, cigarette, gas, beer, wine, and spirits tax rates.
50-State Table of State and Local General and Selective Sales Tax Collections 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
