Complete Guide to Kansas LLC Taxes in 2025
Kansas presents a moderate tax environment for LLC owners, with graduated individual income tax rates from 3.1% to 5.7%, a $55 annual report, and a unique $150 annual privilege tax imposed on LLCs at the entity level. While the income tax rates are competitive within the Midwest, the privilege tax adds an additional compliance obligation and cost. This comprehensive guide covers everything Kansas LLC owners need to know about their state tax obligations.
How Kansas Taxes LLCs
Kansas treats LLCs as pass-through entities following federal classification. LLC profits pass through to members who report on their Kansas individual income tax returns (Form K-40). Kansas also imposes an annual privilege tax of $150 on LLCs, which is an entity-level fee paid directly by the LLC regardless of its income.
Key Point: Kansas previously exempted pass-through income from state income tax entirely under Governor Brownback's 2012 tax reform. That exemption was repealed in 2017 after it caused significant budget shortfalls. LLC income is now fully taxable in Kansas at the standard graduated rates.
Kansas Income Tax Brackets
| Taxable Income (Single) | Rate |
|---|---|
| $0 - $15,000 | 3.10% |
| $15,001 - $30,000 | 5.25% |
| Over $30,000 | 5.70% |
For married filing jointly, brackets double ($30,000 and $60,000 thresholds). Kansas also imposes a surtax of 0% on taxable income, which was part of the post-Brownback reform structure.
Kansas Privilege Tax
Every Kansas LLC must pay an annual privilege tax of $150. This is separate from the income tax and must be paid regardless of whether the LLC earns income. The privilege tax is due on the 15th day of the fourth month after the LLC's tax year ends (April 15 for calendar-year filers). Failure to pay results in penalties and potential administrative dissolution.
Federal Taxes for Kansas LLC Owners
- Self-Employment Tax: 15.3% on 92.35% of net earnings
- Federal Income Tax: 10-37% graduated brackets
- QBI Deduction: Up to 20% under Section 199A
Tax Tip: The $150 privilege tax is deductible as a business expense on your federal return, reducing both federal and effectively Kansas taxable income. Don't overlook this deduction. For LLC owners with higher income, use our S-Corp Tax Calculator to compare the SE tax savings.
Kansas LLC Filing Deadlines
| Filing | Deadline | Extension |
|---|---|---|
| Individual (K-40) | April 15 | Yes, to October 15 |
| Partnership (K-65) | March 15 | Yes, to September 15 |
| Privilege Tax | April 15 | No |
| Annual Report | 15th day of 4th month after tax year | No |
| Estimated Tax | Apr 15, Jun 15, Sep 15, Jan 15 | No |
Kansas vs. Neighboring States
| State | Income Tax | Annual Fee | Entity Tax |
|---|---|---|---|
| Kansas | 3.1-5.7% | $55 | $150 privilege |
| Missouri | 2-4.8% | $0 | None |
| Oklahoma | 4.75% flat | $25 | None |
| Nebraska | 2.46-5.84% | $26 biennial | None |
| Colorado | 4.4% flat | $10 | None |
Common Kansas LLC Tax Mistakes
- Forgetting the privilege tax: The $150 annual fee catches many new LLC owners off guard.
- Expecting pass-through exemption: The old LLC income tax exemption was repealed in 2017. All LLC income is now taxable.
- Missing the annual report: $55 annual report plus the $150 privilege tax are separate obligations.
- Not deducting privilege tax federally: The $150 is a deductible business expense.
- Ignoring estimated tax requirements: Kansas requires quarterly payments if you'll owe $500+.
Dissolving a Kansas LLC
File Articles of Dissolution with the Kansas Secretary of State ($20). File final tax returns and pay all outstanding privilege tax before dissolution.