Kansas Capital Gains Tax Rate (2026)
Kansas capital gains tax overview
Two brackets: 5.2% up to $23,000 (single), 5.58% above. No preferential long-term rate.
Federal + Kansas combined rates
Your total capital gains tax bill includes both layers — federal and state. Here is what a Kansas investor pays in 2026 for long-term gains:
| Federal Long-Term Rate | Kansas State Rate | Combined Rate | Plus NIIT (if applicable) |
|---|---|---|---|
| 0% | 5.58% | 5.58% | 9.4% |
| 15% | 5.58% | 20.6% | 24.4% |
| 20% | 5.58% | 25.6% | 29.4% |
The NIIT (Net Investment Income Tax) adds an extra 3.8% for taxpayers whose MAGI exceeds $200,000 (single) or $250,000 (married filing jointly). It is a federal tax only — Kansas does not have an equivalent.
How Kansas compares to other states
Kansas's top rate of 5.58% places it in the lower-middle tier of state capital gains taxation. For comparison:
- Zero-tax states (FL, TX, NV, etc.): 0% — total with 15% federal = 15%
- Low-rate states (AZ, IN, PA): 2.5–3.1% — total with 15% federal = 17.5–18.1%
- Kansas: 5.58% — total with 15% federal = 20.6%
- High-rate states (NY, NJ): 10.75–10.9% — total with 15% federal = ~26%
- California: 13.3% — total with 15% federal = 28.3%
Tax-reduction strategies for Kansas residents
With a top state rate of 5.58%, minimizing capital gains tax is particularly important in Kansas. Key strategies:
- Hold over 1 year for long-term federal rates (0/15/20%). Kansas does not offer a preferential state rate, but federal savings alone are often 7–17%.
- Tax-loss harvesting: Offset your gains with losses realized in the same year. A $20,000 loss offsets $20,000 of gains dollar-for-dollar, saving up to 26% ($5,116) on that $20,000 at top rates.
- 0% bracket planning: In lower-income years (retirement, sabbatical, between jobs), realize gains at the federal 0% rate. You still owe Kansas state tax, but eliminating the federal component is significant.
- Donate appreciated stock directly to charity or a donor-advised fund to avoid capital gains tax entirely while generating a charitable deduction for the full fair market value.
- Installment sales: If selling a business or real estate, structuring as an installment sale spreads the gain over multiple years, potentially keeping each year's gain in a lower bracket.
Detailed Kansas capital gains tax rules
Tax history and legal basis
Kansas taxes capital gains as ordinary income using a progressive rate structure with a top rate of 5.58%.
Exemptions and special treatment
Kansas does not offer a preferential long-term capital gains rate. However, gains from the sale of Kansas-located property or businesses may qualify for certain subtractions. Social Security and government pensions are exempt from Kansas income tax.
Filing requirements
File Form K-40 (resident). Kansas starts with federal AGI. Estimated payments are required if owing $500+. Filing deadline is April 15.
Recent changes and legislative updates
Kansas has maintained stable rates in recent years after the controversial 2012-2017 tax experiment (which dramatically cut rates, then reversed them). The current top rate of 5.58% has been in effect since 2017. Legislative efforts to reduce rates further have not advanced.
Worked example: $50,000 capital gain in Kansas
Here's exactly what a Kansas resident would owe on a $50,000 long-term capital gain with $80,000 in other income (single filer, 2026):
| Component | Amount | Notes |
|---|---|---|
| Capital gain | $50,000 | Long-term (held over 1 year) |
| Federal tax (15%) | −$7,500 | Based on $80,000 ordinary income + gain |
| Kansas state tax (5.7%) | −$2,850 | Applied to the full gain amount |
| Total tax owed | −$10,350 | Federal + state combined |
| You keep | $39,650 | 79.3% of your gain |
After both federal and Kansas state tax, you keep $39,650 of your original $50,000 gain. The effective combined rate is 20.7%.
Frequently asked questions — Kansas
Does Kansas tax short-term and long-term gains differently?
No — Kansas taxes both short-term and long-term capital gains as ordinary income at the same rates as wages. There is no state-level preferential rate for patience. The federal system, however, taxes long-term gains at 0/15/20% vs. up to 37% for short-term — a significant difference that applies regardless of state.
Do I need to file a Kansas tax return if I only have capital gains?
If you have capital gains income and meet Kansas's filing threshold, you are required to file a Kansas state income tax return. The threshold is typically similar to the standard deduction amount — check the KS Department of Revenue for the current year's filing requirements.
What if I moved to Kansas mid-year?
If you moved to Kansas during the year, you are a part-year resident. Kansas generally taxes capital gains realized while you were a Kansas resident. Gains realized before you moved may be taxable by your prior state. Keep detailed records of when each sale occurred relative to your move date.