What are Kansas state income tax and unemployment insurance rates in 2026?
Two brackets, one reformed wage base, zero state PFL.
· Kansas guide
Photo: Mary Hammel via Unsplash · Kansas
Kansas income tax in 2026 uses two brackets: 5.20% on income up to $23,000 for single filers and 5.58% above that, a structure created by Senate Bill 1 signed June 2024. State unemployment insurance applies to the first $15,100 of wages per employee, up from $14,000 in 2025 under House Bill 2570's indexed wage base formula. New employers pay approximately 2.7% in state UI. Social Security income is fully exempt from Kansas tax since 2024. Teamed handles Kansas payroll on a single fixed rate of $599 per employee per month, Zero FX in any currency pairing, with statutory costs itemised and passed through at cost.
What is the Kansas state income tax rate in 2026?
Kansas uses two income tax brackets in 2026: 5.20% on income up to $23,000 (single) and 5.58% above. Senate Bill 1, signed June 2024, created this structure by collapsing the old three-bracket system.
Kansas moved from three income tax brackets to two in June 2024 when Governor Laura Kelly signed Senate Bill 1 during a special legislative session. The old top rate of 5.7% dropped to 5.58%. The 5.25% mid-rate fell to 5.20%. The lowest 3.1% bracket was eliminated entirely.
| Bracket | Single filer income | Married filing jointly | Rate |
|---|---|---|---|
| Band 1 | $0 to $23,000 | $0 to $46,000 | 5.20% |
| Band 2 | Above $23,000 | Above $46,000 | 5.58% |
The same SB 1 reform raised the Kansas personal exemption. Single filers now claim $9,160 (up from $2,250). Married couples filing jointly claim $18,320 (up from $4,500). Each dependent adds $2,320. Standard deductions are $3,605 (single) and $8,240 (married filing jointly).
Social Security income is fully exempt from Kansas income tax for all filers, also effective from tax year 2024. For employees nearing retirement in your Kansas workforce, this is a meaningful take-home improvement.
Source: Tax Foundation 2026 State Income Tax Rates; Kansas Reflector, June 2024 (verified 30th May 2026)
How does Kansas income tax withholding work for employers?
Every employer paying Kansas wages must register with the Kansas Department of Revenue and withhold using the K-4 form. New hires complete a K-4 on or before their first day of work.
The K-4 (Kansas Employee's Withholding Allowance Certificate) is the state equivalent of the federal W-4. Employees hired after 31st December 2007 must complete a K-4 before or on the date of employment if they earn Kansas source wages. The current revision is K-4 (Rev. July 2024). If an employee does not submit a K-4, you withhold at the single rate with no allowances.
| Annual withholding | Frequency | KW-5 due date |
|---|---|---|
| Above $100,000 | Quad-monthly | Four times per month |
| $8,000 to $100,000 | Semi-monthly | Twice per month |
| $1,200 to $8,000 | Monthly | 15th of the following month |
| $200 to $1,200 | Quarterly | 25th after quarter end |
| Below $200 | Annual | January of following year |
The Kansas Department of Revenue assigns your filing frequency based on your annual withholding volume. The annual reconciliation Form KW-3 is due 15th February of the following year, filed together with employee W-2s. A 15% penalty applies to late deposits or returns.
Register for a Kansas withholding tax account number before running your first Kansas payroll. Registration is through the Kansas Department of Revenue. Your in-house payroll specialist at Teamed handles registration, K-4 collection, and monthly filings for every Kansas employee on our platform. You see the gross-to-net breakdown before payroll closes, not after.
Source: Kansas KW-100 Withholding Tax Guide; Kansas K-4 form information (verified 30th May 2026)
What is the Kansas unemployment insurance rate for 2026?
Kansas UI applies to the first $15,100 of wages per employee in 2026, up from $14,000 in 2025. New employers pay approximately 2.7% on that base, a maximum annual cost of $407 per employee.
Kansas House Bill 2570, signed by Governor Laura Kelly on 24th April 2024, made two material changes. First, it replaced the fixed $14,000 wage base with an annually-indexed formula tied to a percentage of the statewide average annual wage (SAAW). The 2026 wage base is $15,100. Second, it restructured Kansas's 13 unemployment rate schedules.
| Year | Wage base | Formula | Source |
|---|---|---|---|
| 2025 | $14,000 | Fixed (pre-HB 2570) | KDOL |
| 2026 | $15,100 | 25% of SAAW | EY Tax News, Jan 2026 |
| 2027 | Indexed | 25% of SAAW | HB 2570 |
| 2028 | Indexed | 30% of SAAW | HB 2570 |
| 2029+ | Indexed | 35% then 40% from 2032 | HB 2570 |
Under the HB 2570 restructured schedules, experienced employer rates range from 0.0% to 7.60%. The most positively rated employers can now reach a 0% rate, a floor unavailable under the old structure. New non-construction employers are assigned approximately 2.7%. New construction-industry employers face a higher rate (approximately 5.55%), reflecting the historically higher claims patterns in that sector.
Rates are experience-based: the ratio of unemployment benefits charged to your account versus your taxable wages reported. A clean claims history moves you down the schedule. The Kansas Department of Labor mails rate notices annually.
Federal FUTA applies separately: 6.0% on the first $7,000 of wages per employee, reduced to an effective 0.6% for Kansas employers who pay state UI on time (the standard 5.4% FUTA credit). That's a maximum of $42 per employee per year in federal unemployment tax. Kansas's continued good standing means the credit holds.
Source: EY Tax News, January 2026; Kansas HB 2570 (2024) (verified 30th May 2026)
How much does Kansas payroll cost an employer in 2026?
A $70,000 Kansas hire costs roughly $76,000 loaded. Federal FICA (7.65%), state UI up to $407 per employee, plus the Teamed fee of $599/month flat.
Kansas has no state disability insurance (SDI) and no state paid family leave (PFL) programme. That keeps the statutory employer cost below states like California or New York. Kansas income tax withholding is an employee-side cost: you administer it, you don't pay it as an employer contribution.
| Line | $70,000 hire | Source |
|---|---|---|
| Gross salary | $70,000 | Contract |
| Social Security employer (6.2% on $70,000) | $4,340 | IRS 2026; SS wage base $176,100 |
| Medicare employer (1.45%) | $1,015 | IRS 2026 |
| Federal FUTA after credit (0.6% on $7,000) | $42 | IRS Form 940 |
| Kansas UI (2.7% on $15,100) | $407 | KDOL; EY Tax News 2026 |
| Kansas SDI / PFL | $0 | No state programme |
| Teamed fee ($599/month) | $7,188 | Single fixed rate, Zero FX |
| Total annual employer cost | $82,992 | ~119% of gross |
The 119% loading is leaner than most US states with SDI or PFL mandates. Kansas's lack of state-level leave programmes means your variable cost mostly follows FICA and UI contributions, which are the same for every US employer on this salary.
You pay $599 per employee per month, flat. Statutory costs above sit on top of gross salary and pass through at cost on every Teamed invoice, itemised line by line. You pay in dollars, euros, or pounds. The fee is the same in any currency: Zero FX mark-up. No hidden spread, no premium for cross-currency billing. The invoice fits on one screen. That's the point.
Contractor through EOR to entity: once your Kansas headcount crosses the graduation point (roughly 5 to 8 employees at mid-market salaries), running your own entity becomes cheaper than the EOR fee on the same gross. We tell you when you've crossed it. The EOR model is right until it isn't.
What should you know before running payroll in Kansas?
Kansas has no state PFL and no state SDI. The two legislative changes employers still misquote: Senate Bill 1 raised personal exemptions dramatically in 2024, and HB 2570 permanently converted the UI wage base to an annual index starting 2026.
Kansas income tax now starts at 5.20%, not at 3.1%. The old lowest bracket is gone. An employee earning $22,000 pays Kansas income tax on every dollar; the rate is 5.20% throughout. The higher personal exemption ($9,160 single) offsets this at lower income levels, but the bracket structure simplifies withholding calculations considerably compared to the three-bracket pre-2024 system.
Federal FMLA applies at 50 or more employees within 75 miles. Kansas has no state equivalent. Below 50 employees, the leave policy you write in the offer letter is the policy you run. Social Security income has been fully exempt from Kansas tax since tax year 2024. If any of your Kansas employees are in a phased-retirement arrangement or drawing Social Security, update their K-4 withholding accordingly.
New hire reporting is due within 20 days of hire date, submitted through KansasEmployer.gov. The state also accepts Form W-4 mailed or faxed to the Kansas New Hire Directory. Employees returning after a gap of 60 or more consecutive days count as new hires for reporting purposes. There is no monetary penalty for late reporting in Kansas, though the obligation is statutory under federal and state law.
Kansas has no state-level overtime pay exemption at present. The Alabama-style overtime deduction did not make it into Kansas law. Federal FLSA overtime rules (1.5x for FLSA non-exempt employees over 40 hours per week) apply statewide without modification. A Teamed country specialist monitors Kansas legislative changes and flags anything that affects your payroll before it takes effect.
Source: Kansas Department of Labor, New Hire Reporting (verified 30th May 2026)
Frequently asked questions about Kansas payroll tax
Five questions Kansas employers ask most often about state income tax and UI, answered with statute references.
What is the Kansas state income tax rate for 2026?
Kansas uses two brackets in 2026: 5.20% on income up to $23,000 for single filers and 5.58% on income above that, following Senate Bill 1 signed in June 2024 which replaced the old three-bracket system.
What is the Kansas unemployment insurance wage base for 2026?
The Kansas UI taxable wage base is $15,100 for 2026, up from $14,000 in 2025. Kansas HB 2570 (signed 24th April 2024) replaced the fixed wage base with a formula tied to 25% of the statewide average annual wage.
What is the Kansas K-4 form?
The K-4 is the Kansas Employee's Withholding Allowance Certificate. Employees hired after 31st December 2007 must complete a K-4 on or before their first day of employment. Employers who receive no K-4 must withhold at the single rate with no allowances.
Does Kansas have paid family leave?
No. Kansas has no state paid family leave programme and no state disability insurance. Federal FMLA, unpaid and job-protected for up to 12 weeks, applies to employers with 50 or more employees within 75 miles.
What changed in Kansas income tax in 2024?
Kansas Senate Bill 1 (June 2024 Special Session) collapsed three income tax brackets into two (5.20% and 5.58%), raised personal exemptions to $9,160 single and $18,320 married, and fully exempted Social Security income from Kansas state tax.
Kansas ran three income tax brackets until June 2024. SB 1 cut it to two and doubled the personal exemption.
The UI wage base just stopped being fixed. It's indexed now, and it will keep rising under HB 2570's formula through 2032.
If your Kansas headcount is growing, budget the rising wage base into your year-two cost model. And if you're still on the old $14,000 figure, you're already behind.
