At a glance
- Corporate tax
- 3.5% + 3% surtax over $50,000
- Tax on wages
- 5.2% and 5.58%
- Sales tax
- 6.5% + local
- Economic nexus
- $100,000 in sales
- Minimum wage
- $7.25/hr
- UI wage base
- $15,100
- New-employer UI rate
- 1.75%
- Paid leave program
- None
- Annual report
- Biennial, 15th day of 4th month
2026 figures, each explained with its source on the area’s page. On top of the federal baseline.
Setup, in order
Register the corporation
Before doing business in KansasFile a Foreign Business Application with the Secretary of State ($115) and name a Kansas registered agent.
Register with the Department of Revenue
Before the first Kansas payrollOne Business Tax Application with KDOR opens withholding and, if needed, sales tax accounts.
Register for unemployment insurance
When the first Kansas employee is hiredRegister with KDOL; new non-construction employers pay 1.75% on the first $15,100 in 2026.
Report new hires
Within 20 days of hireReport each new hire to the Kansas New Hire Directory.
Buy workers’ compensation insurance
As payroll passes $20,000Required once gross annual payroll exceeds $20,000.
Register for sales tax
When nexus is reachedRequired once sales to Kansas customers exceed $100,000 and the company makes taxable sales; register within 30 days.
The six areas
- AccountingAccounting and state tax in KansasKansas taxes corporations at 3.5% plus a 3% surtax above $50,000, and apportions by three factors until single sales factor arrives in 2027.Normal tax3.5%
- ReceivablesReceivables and sales tax in KansasKansas’s nexus threshold is $100,000 of all sales to Kansas customers, exempt ones included. Remotely accessed SaaS is generally not taxable; the state rate is 6.5% plus local.State sales tax rate6.5%
- PayablesPayables and contractors in KansasKansas wants a copy of every 1099 by January 31, through CF/SF unless Kansas tax was withheld. Use tax reaches hardware and installed software, not most SaaS.1099s to KansasDue Jan 31
- PayrollPayroll taxes and employer rules in KansasKansas withholds at 5.2% and 5.58%, charges new employers 1.75% on a $15,100 wage base that rises each year to 2030, and has no local payroll tax.State withholding5.2% / 5.58%
- ComplianceCompliance and filings in KansasRegister with the Secretary of State for $115, file the biennial information report and the K-120 by the 15th day of the fourth month, and report unclaimed property by November 1.Foreign business application$115
- AdvisoryAdvisory: credits and decisions in KansasKansas’s R&D credit is 10% of incremental research spending and transferable by companies with no tax to offset. Single sales factor from 2027 changes where Kansas income lands.R&D credit10%
Who you register with
- Kansas Department of Revenue (KDOR)Corporate income tax, withholding and sales tax registration (Business Tax Application)
- Kansas Department of Labor (KDOL)Unemployment insurance account, quarterly wage reports, new-hire reporting
- Kansas Secretary of State — Business ServicesForeign business application and information reports
- Kansas State Treasurer — Unclaimed PropertyAnnual unclaimed property report
Hiring across the border
An employee who lives in one state and works in another is the most common way a startup ends up registered in two. These are Kansas’s neighbors.
- NENebraskaFlat 4.55% corporate tax, a $15 minimum wage, and sick time from the 11th employee
- MOMissouriFlat 4% corporate rate, no franchise tax, and a 1% earnings tax in KC and St. Louis
- OKOklahomaFlat 4% corporate tax, no franchise tax since 2024, but three-factor apportionment
- COColoradoFlat 4.4% tax, FAMLI premiums, and home-rule cities that run their own sales tax
Common questions
What is Kansas’s corporate tax rate in 2026?
3.5% on all Kansas taxable income plus a 3% surtax on the part above $50,000, so 6.5% at the margin once income passes $50,000. SB 269 (2025) lowers rates when revenue beats an inflation-adjusted base, but individual rates are cut first, and the Department confirmed there is no reduction for tax year 2026.
Do I charge Kansas sales tax on SaaS?
Generally no. The Department’s software guidance says charges by an application service provider for its services are not taxable, and that for an electronic sale to be taxed as prewritten software the software has to reside, at least temporarily, on the customer’s computer. A product that requires a download or an installed agent is closer to the line.
Do I file 1099s with Kansas?
Yes — Kansas wants a copy of each 1099 filed with the IRS, by January 31. The IRS Combined Federal/State Filing program covers it, except for 1099s that show Kansas income tax withheld, which must be submitted electronically with the KW-3.
Why is the Kansas wage base going up?
HB 2570 (2024) tied the taxable wage base to the statewide average annual wage instead of a fixed $14,000. It is 25% of that wage from 2026 — $15,100 — and steps up to 30% in 2028, 35% in 2029 and 40% in 2030. Expect the Kansas unemployment cost per employee to rise each year through 2030 even if the rate doesn’t.
Is the Kansas annual report still annual?
Every two years. Kansas moved from annual to biennial information reports in 2025, and whether a business files in even or odd years is tied to the year it formed or registered. The report is due by the 15th day of the fourth month after the tax year ends — April 15 for a calendar-year company.
Can a loss-making startup use the Kansas R&D credit?
Yes, in a way most states’ credits are not. Since tax year 2023 a taxpayer with no current Kansas tax liability can transfer a new Kansas R&D credit to another person — the whole credit, once — using Form K-260. For a pre-profit startup that turns the credit into cash at a discount rather than a carryforward it may never use.
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
- Kansas Department of Revenue — Notice 23-10, Change to Corporate Income Tax Rate
- Kansas Department of Revenue — Notice 25-06, Contingent Income and Privilege Tax Rate Decreases
- Kansas Department of Revenue — 2025 Corporate Income Tax Instructions
- Kansas Legislature — HB 2231 (2025), single sales factor and market-based sourcing
- Kansas Department of Revenue — KW-100 Kansas Withholding Tax Guide
- Kansas Department of Revenue — Notice 21-17, Remote Sellers
- Kansas Department of Revenue — Information for Marketplace Facilitators and Remote Sellers
- Kansas Department of Revenue — Pub. KS-1510, Sales Tax and Compensating Use Tax
- Kansas Department of Revenue — Sales Tax Guidelines: Computer Software and Related Services
- Kansas Department of Revenue — Research and Development Credit
- Kansas Department of Revenue — Pub. KS-1216, Business Tax Application
- Kansas Legislative Research Department — Kansas Unemployment Insurance Trust Fund (Aug 2026)
- Kansas Department of Labor — Employers
- Kansas Secretary of State — Instructions for Filing Foreign Business Application (rev. 3/2/26)
- Kansas Secretary of State — Business Entity FAQ
- Kansas Secretary of State — Fee reductions announced May 26, 2026
- NAUPA — Kansas reporting profile
- US Department of Labor — State minimum wage laws
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.