- Home
- Incentives
- Sales Tax Exemptions & Other Incentives
Sales Tax Exemptions & Other Incentives
State Tax Exemptions
Kansas state sales and use tax rate are 6.15 percent. However, there are several state tax exemptions available, including:
In addition, the Kansas Edge offers a several business friendly advantages, including:
Kansas state sales and use tax rate are 6.15 percent. However, there are several state tax exemptions available, including:
- Labor services related to original construction
- Remodeling costs, furnishings, furniture, machinery and equipment
- New machinery and equipment for manufacturing and distribution
- Tangible personal property that becomes an ingredient or component part of a finished product
- Tangible personal property that is immediately consumed in the production process
- Incoming and outgoing interstate telephone or transmission services (WATTS)
- Real and personal property financed with an Industrial Revenue Bond
In addition, the Kansas Edge offers a several business friendly advantages, including:
- Right-to-work state where union membership is 6.8 percent, well below the national average
- Inventory tax exemption that includes all merchant and manufacturer’s inventories
- Research tax credit that features an income tax credit of 6.5 percent of a company’s investment in research and development above the average expenditure of the previous three-year period
- No local income taxes are imposed by Kansas cities and counties
- No Kansas franchise tax
- Low workers’ compensation rates in Kansas, which ranks the ninth lowest in the U.S. for such rates