Kansas sits in the American Midwest, bordered by Nebraska to the north, Missouri to the east, Oklahoma to the south and Colorado to the west. "The Sunflower State" covers 210,000 km² and is home to just under 3 million people. Its capital, Topeka, has around 130,000 residents and is the state's fourth-largest city.
Companies choose Kansas for clear competitive advantages that translate into stronger performance and higher profits. They value the tax and cost benefits just as much as the skilled workforce and well-developed infrastructure. Kansas has become a haven for innovation and investment.
Its central location makes Kansas an ideal base for international companies looking to tap into the North American market. If you are planning to expand into the USA, Kansas could be a competitive option for you.
Outstanding infrastructure
A wide range of industries operate and grow in Kansas, and new success stories are written here every day. Much of that comes down to exceptionally good infrastructure. The state realized long ago that this had become a competitive advantage, so it invests in building and maintaining its multimodal infrastructure. Road, rail or air: Kansas is superbly equipped in every one.
Moving goods into and out of Kansas is easier and more affordable. CNBC ranks the "Sunflower State" third in the nation for infrastructure quality, and the state places sixth for its roads (Reason Foundation, 2019). That is why so many production sites, warehouses and distribution centers have settled in the "Sunflower State".
Landlocked? No problem
The rail network is the sixth-largest in the USA. Four Class I railroads, along with three switching and terminal railroads among others, keep traffic running smoothly across Kansas. Together the operators run more than 100 freight transfer facilities and terminals, serving local, national and global markets.
Air transport is every bit as strong as rail. Kansas is home to eight commercial service airports, more than 130 public and 200 private airports. Many of them sit right next to industrial areas, giving businesses a range of attractive options for air cargo.
Despite being landlocked, Kansas has access to inland waterways. Eight commercial terminals have been built along its roughly 200 kilometers of Missouri River frontage. The Port of Catoosa offers another option for shipping freight, just 80 kilometers from Kansas's southern border.
A skilled workforce, ready to go
The economy's growth also owes a great deal to the local workforce. Good schools and close partnerships between industry and education ensure workers meet the demands of business. They are ready to take on the challenges of the global economy and master them.
Income tax in Kansas
Kansas levies income tax of 5.2% to 5.58% (two brackets since tax year 2024). Federal income tax is payable on top.
Corporate tax in Kansas
Kansas levies corporate tax of up to 6.5% in total (3.5% normal tax plus a 3% surtax on profits above $50,000). Federal corporate tax is payable on top.
Sales tax in Kansas
The USA has no VAT on the European model. Instead, states, counties and municipalities levy a local sales tax on the sale of goods (but not services).
Kansas sales tax rate
The state sales tax in Kansas is 6.5%. Cities and counties add an average of 2.18%, so the combined rate averages 8.68%.
Kansas nexus laws & sales tax
Learn more about economic nexus laws and sales tax.
Effective date
July 1, 2021
Included transactions:
Cumulative gross receipts from the retailer's sales to customers in Kansas.
Treatment of exempt sales:
Pending further clarification on the treatment of exempt sales and services
Trigger:
Sales only
Sales/transaction threshold:
$100,000
Evaluation period:
The threshold applies to sales in the current or immediately preceding calendar year
Additional information:
- Registration requirements: According to the Kansas Department of Revenue, a remote seller must register and start collecting sales tax on the first sale or date after reaching the economic nexus threshold.
- Before SB 50 was passed in May 2021, the Kansas Department of Revenue (Notice 19-04) required every remote business selling into the state to register to collect and remit sales tax, with no protection at all for small sellers. SB 50 provides that a remote seller reaching the economic nexus threshold "is not required to collect and remit tax on sales occurring before July 1, 2021".
Kansas marketplace sellers & sales tax
Learn more about registration requirements for marketplace sellers
Effective date for marketplace facilitators:
July 1, 2021
Economic nexus threshold:
More than $100,000 in Kansas sales in the current or previous calendar year. When calculating the threshold:
- Marketplace facilitators include all sales (direct and third-party) made through the marketplace
Registration requirements:
- Remote multichannel sellers: Once you exceed the economic nexus threshold, you must register with the Kansas Department of Revenue (DOR) and collect Kansas sales tax on sales not taxed by a marketplace facilitator.
- Remote marketplace sellers: You may need to register with the Kansas DOR, even if you exceed the economic nexus threshold. Contact the DOR for more information.
- In-state multichannel sellers: You must register with the Kansas DOR and collect tax on sales not taxed by a marketplace facilitator.
- In-state marketplace sellers: You may need to register. Contact the Kansas DOR for more information.
- Learn more in SB 50 and from the Kansas DOR.
Compare every location in the overview of US states, and get started with the guide to forming a company in the USA.
Our services for Kansas:
If Kansas is to become your market, it starts with the right structure. Under US company formation you will find entity types and states of formation with prices; in a consultation we work out which of them fits you.