Selling a business in Kansas: what the state takes (2026)
Kansas’s top individual income tax rate is 5.58%. Here is what an owner selling company stock pays, with 2026 rules from official sources and worked examples at $10 million, $25 million and $50 million.
- 5.58%
- Top Kansas income tax rate (2026)
- $1,395,000
- State tax on a $25M long-term gain
- 29.4%
- Combined federal and state rate on $25M
- 18 of 51
- Rank by total tax on $25M (1 = highest)
How Kansas taxes a business sale
- Income tax
- Top rate 5.58%: Over $23,000 (single).
- Long-term capital gains
- Capital gains are taxed as ordinary income, reaching 5.58% above $23,000; no exclusion or preferential rate.
- Entity-level taxes
- S corporations generally pass income through; Kansas has an elective pass-through entity tax.
- Local taxes
- No local tax on residents' capital gains. Tax Foundation notes some Kansas jurisdictions have payroll or interest-and-dividend taxes, which do not reach capital gains.
Three worked examples
| Long-term gain | $10,000,000 | $25,000,000 | $50,000,000 |
|---|---|---|---|
| Federal capital gains tax (20%) | $2,000,000 | $5,000,000 | $10,000,000 |
| Net investment income tax (3.8%) | $380,000 | $950,000 | $1,900,000 |
| Kansas tax | $558,000 | $1,395,000 | $2,790,000 |
| Total tax | $2,938,000 | $7,345,000 | $14,690,000 |
| Effective combined rate | 29.38% | 29.38% | 29.38% |
| Net proceeds after tax | $7,062,000 | $17,655,000 | $35,310,000 |
| Extra tax versus Texas | $558,000 | $1,395,000 | $2,790,000 |
Seller’s tax calculator
Estimate federal and state tax on a stock sale and what is left before fees and debt.
- Long-term capital gain
- $25,000,000
- Federal capital gains tax (20%)
- $5,000,000
- Net investment income tax (3.8%)
- $950,000
- Kansas tax
- $1,395,000
- Taxable gain at 5.58%
- $1,395,000
- Total tax
- $7,345,000
- Effective rate on the gain
- 29.38%
- Net proceeds after tax
- $17,655,000
Illustration, not tax advice. Assumes a resident individual, the whole gain long-term, top marginal rates, no state credits, installment terms, QSBS exclusion or other planning, and no local taxes. Net proceeds are before transaction fees, debt repayment, escrows and earn-outs. Rates are for tax year 2026 where published; see the methodology.
Compare with other states
Neighboring states
Common comparisons
- California37.1% combined, $15.72M net
- New York34.1% combined, $16.48M net
- Texas23.8% combined, $19.05M net
- Florida23.8% combined, $19.05M net
- Nevada23.8% combined, $19.05M net
- Washington33.5% combined, $16.63M net
- Tennessee23.8% combined, $19.05M net
Methodology and sources
Kansas figures are for tax year 2026. K.S.A. 79-32,110 sets 5.2% / 5.58% for tax year 2024 and after, unless reduced under the revenue trigger in K.S.A. 79-32,110c (first review August 15, 2025, effective the next tax year). No trigger reduction for 2026 was found; Tax Foundation's 2026 table and the current KDOR withholding guide (KW-100 rev. 10-24) still show 5.58%. The examples assume a resident individual selling privately held stock for a long-term gain equal to the sale price (zero basis), with every dollar taxed at the top marginal rates, the federal 20% capital gains rate and the 3.8% net investment income tax, and no planning, credits or local taxes. Full assumptions are in the report methodology.
All 50 states and DC with source URLs.
- 1K.S.A. 79-32,110 (individual rate schedules)
- 2K.S.A. 79-32,110c (revenue-triggered rate reductions)
- 3K.S.A. 79-32,117 (Kansas AGI modifications; no general capital gain subtraction)
- 4KDOR KW-100 Withholding Tax Guide (rev. 10-24)
- 5Tax Foundation, State Individual Income Tax Rates and Brackets, 2026. Secondary source
Data last updated October 26, 2026.
Cite this research
You may quote and republish figures from this page with attribution and a link to the source.
Citation
Laurent Capital Research, “The Seller’s Tax Map: What Selling a Business Costs in Every State (2026): Kansas,” 2026, https://laurent.capital/research/seller-tax-map/kansasLink (HTML)
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