Tax environment

No Taxes for Many Small Businesses
Kansas has one of the most friendly tax environments in the nation reducing costs for businesses and making it affordable to grow and invest in our state. Most small businesses (Partnerships, Limited Liability Corporations, Limited Liability Partnerships, Sole Proprietorships and Subchapter-S Corporations) no longer pay state income taxes thanks to recent tax reform.

Lower Individual Rates
In addition, Kansas collapsed its old three-bracket structure for individual state income taxes (3.5, 6.25 and 6.45 percent respectively) into a two-bracket system using rates of 3.0 and 4.9 percent. The reform also increased the standard deduction amount for single head-of-household filers from $4,500 to $5,500 and for married taxpayers filing jointly from $6,000 to $7,500.

Incentives to Move to Rural Kansas
Seventy-seven counties in Kansas have been designated Rural Opportunity Zones (ROZ), meaning individuals that move to such counties from out of state will not have to pay state income taxes for up to five years. In addition, Kansas and out-of-state residents alike can have up to $15,000 of their post-secondary student loans repaid by moving to most ROZ counties. Companies located in ROZ counties can participate in the student loan repayment program by contributing funding to help lure qualified workers to their areas of business.