Kansas

The state individual income tax schedule has three brackets, 3.5%, 6.25% and 6.45%. The corporate tax rate is 4.0% with a 3.35% surtax on Kansas taxable income in excess of $50,000, for a total high rate of 7.35%. A statewide 2% sales tax was adopted in 1937. In June 1992, the rate was raised to 4.9%. Cities and counties could vote to adopt an additional 1% local sales tax. For special projects, counties could also assess an additional 1% local sales tax. In January 2003, the state sales tax rate was at 5.3% but scheduled to decrease to 5.2% effective 1 July 2003. Prescription drugs are exempted from the sales tax. Local-option sales taxes can range up to 3%. The state also collects a full set of excise taxes—on motor fuels, insurance premiums, alcoholic beverages, tobacco products, amusements, pari-mutuels, public utilities and other selected items.

In 2002 Kansas was one of 20 states to raise its cigarette tax, and one of seven to more than double it: from 24 cents a pack to 70 cents a pack. Kansas has its own estate tax (maximum rate 15%), which is thus not affected by the scheduled phasing out of the federal estate tax credit by 2007. The Kansas inheritance tax is 10% on amounts up to $100,000 and 15% on amounts above $200,000. Gift and death taxes accounted for about 1% of the state's tax collections in 2002. Other taxes include various license fees, a state property tax, severance taxes for oil and coal, and an Oil and Gas Conservation tax. Property taxes are mainly collected at the local level and are the largest source of income for local governments. Almost half of non-federal tax collections (43.5% in 2000) are collected at the local level in Kansas.

Total state tax collections in Kansas came to $4.808 billion in 2002, 38.5% generated by the state income tax, 37.4% by the state sales tax, 13.2% by state excise taxes, 4.78% by state license fees, and 2.5% by the state corporate income tax. Combined state and local taxes in Kansas amounted to about 9.8% of income in 2003, placing the state 20th in the country in terms of state and local tax burden.

The following table from the US Census Bureau provides a summary of taxes collected by the state in 2002.