Tax forms and a calculator on a desk, Kansas Corporate Income Tax

Kansas Corporate Income Tax: 3.5% Plus the 3% Surtax Over $50,000 and Why There Is No Franchise Tax

Kansas Corporate Income Tax: 3.5% Plus the 3% Surtax Over $50,000 and Why There Is No Franchise Tax

If you are forming a corporation in Kansas, or an LLC that elects to be taxed as a corporation, the state tax question has two parts: the income tax rate, and the franchise tax that many vendors still describe. The short answer is that Kansas taxes corporate income at 3.5% plus a 3% surtax on Kansas taxable income above $50,000, and it does not have a franchise tax. A vendor page that quotes a Kansas franchise tax is describing a tax Kansas stopped applying for tax year 2011.

Informational content only. This guide is not legal or tax advice. Your corporate tax depends on your entity type, your income, and where you do business. Talk with a qualified CPA before you file, and with an attorney before you choose an entity structure or make a tax election.

The Kansas Corporate Income Tax Rate

Kansas taxes a corporation's Kansas taxable income in two layers:

  • Normal tax: 3.5% of Kansas taxable income.
  • Surtax: an additional 3% on Kansas taxable income in excess of $50,000.

The surtax applies only to the portion above $50,000, not to the whole amount. A corporation with $50,000 of Kansas taxable income pays 3.5%, or $1,750. Every dollar above $50,000 carries a combined rate of 6.5%. The table below shows how that works at three income levels.

Kansas taxable incomeNormal tax (3.5%)Surtax (3% over $50,000)Total Kansas corporate income tax
$50,000$1,750$0$1,750
$100,000$3,500$1,500$5,000
$250,000$8,750$6,000$14,750

These figures illustrate the rate structure in the Kansas Department of Revenue (KDOR) corporate booklet for tax year 2025. They are not a prediction of your bill. Your actual Kansas taxable income depends on how your income is calculated and, if you do business in more than one state, how it is apportioned. KDOR updates its booklets each year, so check the current-year booklet before you file.

The most common error is applying the combined rate to all income. Use the two layers above and you will avoid it.

Who Pays the Kansas Corporate Income Tax

The corporate income tax applies to entities that are taxed as corporations for Kansas purposes:

  • C corporations pay the 3.5% normal tax plus the 3% surtax on Kansas taxable income above $50,000.
  • LLCs taxed as corporations pay the same corporate normal tax and surtax. An LLC only gets this treatment if it is taxed as a corporation, which is a federal election that most small LLCs do not make.
  • Banks are the exception. They pay a bank privilege tax instead of the corporate income tax. The bank privilege tax rate is not covered here, so confirm it with KDOR if you are forming a bank.

An LLC taxed as a partnership or treated as a disregarded entity does not pay the corporate income tax at all. It is a pass-through entity for Kansas income tax, which is covered in its own section below.

Why There Is No Kansas Franchise Tax

People search for the Kansas franchise tax because they remember it from older guidance, or because a vendor pitched it as a line item. KDOR states that there is no Kansas franchise tax for tax year 2011 and after. The official explanation is on KDOR's franchise tax page at ksrevenue.gov, and you should check it there rather than relying on a formation service's summary.

The old $55 franchise filing fee that the Secretary of State collected is gone too. Kansas did not replace the franchise tax with a new tax. The recurring state filing is the biennial Information Report, which is a filing, not a tax, and carries a $90 fee when filed online.

Here is what this means in practice:

  • If a vendor quotes a Kansas franchise tax, ask which tax year the rule applies to and which agency issued it. The answer should be KDOR, and the rule should be the current one.
  • Your Kansas state tax exposure for a corporation is the corporate income tax described above, not a separate franchise tax.
  • Your recurring state filing is the Secretary of State Information Report, which has a due date you must track.

What You File With the Secretary of State

Kansas formation and maintenance costs at the Secretary of State are short and fixed:

FilingFeeWhen
Articles of Incorporation, Domestic (Form AI) for corporations$85At formation
Articles of Organization, Domestic LLC (Form DL) for LLCs$85At formation
Information Report (Form IFP for corporations, Form ILC for LLCs)$90 onlineEvery two years by April 15

Kansas uses a biennial Information Report, not an annual report. The schedule depends on the year you formed the entity:

  • Corporations file every two years by April 15, in the odd or even year that matches the year the corporation was formed.
  • LLCs formed in an even year report in each succeeding even year. LLCs formed in an odd year report in each succeeding odd year.
  • Delinquency: a three month window follows the April 15 due date before the entity faces forfeiture. Do not treat that window as a grace period you can plan around.

Kansas calls the registered agent the resident agent. The resident agent must be an individual, a business registered in Kansas, or the entity itself. The registered office must be a Kansas street address where the resident agent can regularly be present. A PO box does not qualify. Whenever the name or address changes, update the resident agent or registered office.

You can search existing entities and file online through the Secretary of State's Business Services portal. Use the official pages:

Pass-Through LLCs and Individual Income Tax Rates

Most small LLCs that are taxed as partnerships or disregarded entities do not pay the corporate income tax. Kansas treats the income as flowing through to the owners. Each member reports their share of Kansas income on their individual return, using the individual rates:

  • 5.2% on Kansas taxable income up to $23,000 for single filers, or up to $46,000 for married couples filing jointly.
  • 5.58% on Kansas taxable income above those thresholds.

This matters for planning. An LLC owner who expects to pay the 3.5% plus 3% corporate structure may actually face the individual rates, and the entity itself does not pay the corporate income tax. Your entity type decides which set of rates applies, so confirm the classification before you assume either one.

An LLC that does elect corporate treatment is taxed under the corporate rules described earlier, and the owners' distributions are a separate question that a CPA should address.

Apportionment and Credits: Check Before You Assume

If your business earns income in more than one state, your Kansas taxable income may be only part of your total income. Kansas uses an apportionment process to determine the share of corporate income taxed in Kansas. The rules, and the credits that may be available, have changed over time. Some changes may have come out of the 2026 legislative session.

Before you rely on any figure, confirm the current apportionment method and any credits that apply to your business with KDOR. Your CPA should also review them against your actual sales and property locations. Do not copy an apportionment percentage from a blog post or a formation service.

Kansas City, Kansas Is Not Kansas City, Missouri

The two Kansas City names cause confusion, and the tax consequences differ. Kansas City, Kansas and Kansas City, Missouri are different cities in different states. Only Kansas City, Missouri has a city earnings tax. A business located in Kansas City, Kansas does not owe a Missouri city earnings tax, and Kansas City, Kansas does not impose a city earnings tax of its own. If you see a warning about Kansas City earnings tax, check which city it refers to before you act on it.

Registering for Kansas Business Taxes

Kansas has no general statewide business license. Filing your entity with the Secretary of State is a filing, not a license. The taxes that apply to you are registered separately through the Kansas Department of Revenue, and KDOR business tax registration is free. Registration is completed through the KDOR Customer Service Center.

If your corporation sells taxable goods or services, you will also need a sales tax permit. The Kansas state sales tax rate is 6.5%. Apply through KDOR's business registration page:

City and county permits and any occupational license your industry requires are separate from state tax registration. Those are not covered by the Secretary of State filing or by the corporate income tax.

Common Mistakes to Avoid

  • Quoting a franchise tax from an old vendor page. Kansas has no franchise tax for tax year 2011 and after.
  • Applying the surtax to all income. The 3% surtax applies only to Kansas taxable income above $50,000.
  • Assuming every LLC pays corporate tax. Most small LLCs are pass-through entities that pay individual rates.
  • Treating the Information Report as annual. It is due every two years by April 15, on the schedule that matches your formation year.
  • Using a PO box as the resident agent address. The registered office must be a Kansas street address.
  • Skipping the forfeiture window. A late Information Report puts the entity at risk. File on time.

When to Bring in a Professional

A single-owner LLC with one state of operation can often handle basic compliance on its own. Bring in a CPA when any of these apply: you operate in more than one state, you plan to elect corporate tax treatment, your company is a bank, or you have significant Kansas taxable income near the $50,000 surtax line. An attorney should review the entity structure and operating agreement before you file. The cost of a short consultation is usually far less than the cost of an incorrect filing or election.

Official Resources

Where a figure in this guide is not confirmed in the current-year KDOR booklet or on an agency page, confirm it there before you file. This content is informational only and is not legal or tax advice. For your situation, consult a qualified CPA or attorney.

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