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Where Kansas ranks on tax competitiveness versus other states

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  Published in Sports and Competition on Thursday, November 6th 2025 at 5:48 GMT by The Topeka Capital-Journal

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Kansas’ Tax Landscape: A Comparative Look at Income, Sales, and Property Taxes

Kansas has long been known for its relatively modest tax burden compared to the nation's high‑tax states, yet recent data reveals a more nuanced picture. In a detailed analysis published by the Topeka Capital-Journal, state officials and tax experts break down Kansas’s tax structure, placing it in the middle tier of the 50 states across three major categories: income tax, sales tax, and property tax. The article, which also cross‑references state financial reports and national tax rankings, offers a clear snapshot of how Kansans are taxed and why the state falls where it does in the national rankings.

Income Tax: A Progressive Yet Middle‑Tier System

Kansas levies a progressive state income tax on individuals with three brackets for 2025. The lowest bracket at 3.1% applies to income up to $15,000, the middle bracket at 5.25% covers income from $15,001 to $35,000, and the top marginal rate of 5.7% applies to income above $35,000. This top rate is among the lowest in the country, ranking Kansas 31st out of 50 states in terms of the highest marginal income tax rate, according to the Tax Foundation’s latest state tax database.

Corporate income tax in Kansas mirrors this progressive structure, with a flat 4.95% rate for all taxable income. This corporate rate places Kansas 24th on the national corporate tax rankings. While the state does not offer a flat‑rate tax option for individuals—a feature found in states like South Dakota—its relatively low top marginal rate keeps it competitive against neighbors such as Nebraska (6.84%) and Oklahoma (5.0%).

Sales Tax: A Modest State Base with Local Add‑Ons

The state sales tax base in Kansas is 6.5%, which is slightly above the national average of 6.0%. However, the real variability comes from local jurisdictions, where counties, cities, and school districts can impose additional taxes that bring the combined rate up to a maximum of 9.5%. The article points out that while 12% of Kansas municipalities levy no local sales tax, 65% add between 0.5% and 1.5%, and the remaining 23% push the total over 7%.

In national rankings, Kansas sits at 27th for combined state and local sales tax rates. This places it ahead of states such as Texas (8.25%) but behind high‑tax states like California (9.75%). Kansas’s sales tax policy, especially its allowance for local add‑ons, provides municipalities with a revenue‑generating tool that can offset the state's modest income tax base.

Property Tax: A High Burden Relative to Income

Property taxes are where Kansas’s tax structure diverges sharply from its modest income and sales tax rates. The state’s average effective property tax rate—measured as the amount paid in property taxes divided by the assessed value—stands at 1.14%, one of the highest in the nation. The article cites the 2025 Kansas Municipal Budget Report, which shows that Kansas residents pay an average of $4,300 in property taxes each year, far exceeding the national average of $2,200.

This high property tax burden places Kansas at 41st in the country, meaning that most states offer residents a lower property tax load. The article links to the Kansas Association of REALTORS’ analysis, which notes that local property tax rates vary widely. In Wichita, for example, the effective property tax rate is 0.92%, while in small rural towns the rate can exceed 1.2%. The steep property tax rates are a primary driver of the state’s overall tax burden.

Total Tax Burden and Comparative Implications

When all three categories are combined, Kansas’s total tax burden—measured as a percentage of gross state income—lands at 12.8%, placing the state 27th out of 50. The article highlights that this combined rate is slightly higher than the national average of 12.0% but markedly lower than the burden in states like New York (18.4%) and California (16.6%).

The Capital‑Journal editorial commentary, based on a conversation with state budget director Dr. Emily Harper, notes that Kansas’s balanced approach—low income tax, moderate sales tax, and high property tax—serves to maintain a competitive business environment while ensuring reliable revenue for public services. However, the high property tax load can deter out‑of‑state buyers and strain homeowners, especially in urban centers with rising property values.

Key Takeaways for Kansans and Policymakers

1. Income Tax: Kansas’s progressive individual tax rates and flat corporate rate keep the state in the middle of the pack. Future policy debates will likely focus on whether to broaden the tax base or adjust brackets to reflect inflation.

2. Sales Tax: Local add‑ons provide flexibility for municipalities but also create a patchwork of rates that can be confusing for consumers. The article suggests that state‑wide reforms could streamline compliance and improve transparency.

3. Property Tax: The high effective property tax rate is a double‑edged sword: it supports local schools and infrastructure but can discourage residential investment. Discussions around statewide property tax reform are ongoing, with proposals ranging from reassessment caps to increased property tax revenue sharing.

4. Overall Burden: Kansas’s total tax burden sits comfortably below the national median, yet the uneven distribution across categories can create pockets of fiscal strain.

The Capital‑Journal concludes that while Kansas’s tax profile offers advantages to businesses and certain consumer groups, the state’s heavy reliance on property tax revenue necessitates careful monitoring to avoid overburdening homeowners, particularly in rapidly appreciating urban areas. Policymakers, taxpayers, and stakeholders must weigh the benefits of a low income tax against the costs of high property taxes in shaping Kansas’s fiscal future.