Capital Gains Tax in Kansas (2026)
Kansas has no special capital gains rate — the state taxes your gain as ordinary income in two brackets, 5.20% and 5.58%, stacked on top of the federal 0/15/20% tax and the 3.8% NIIT. Run the combined number below.
Reviewed & updated · 2026 tax-year figures · Federal + Kansas state
Kansas does not have a preferential long-term capital gains rate. Under K.S.A. §79-32,110, both short- and long-term gains are taxed as ordinary income in Kansas's two brackets — 5.20% up to $23,000 of taxable income ($46,000 married filing jointly) and 5.58% above. That state tax is added on top of the federal capital gains tax (0/15/20% long-term under IRC §1(h)) and the 3.8% NIIT (§1411). A top-bracket Kansan can face a combined rate near 29.4% on a long-term gain.
Net proceeds $174,800$26,200
Show our work federal + KS, step by step
Estimates only, for the 2026 tax year. Not tax advice. Kansas's two bracket rates (5.20% / 5.58%) are fixed by statute under SB 1 (2024 Special Session); the bracket thresholds ($23,000 single / $46,000 joint) are not inflation-indexed. The 2026 standard deduction is $3,605 single / $8,240 joint; figures are owner-verifiable against the Kansas Department of Revenue.
How does Kansas tax capital gains?
Kansas gives capital gains no break at all. Under K.S.A. §79-32,110, a capital gain is simply part of your Kansas taxable income and is taxed at the same graduated rates as wages. There is no equivalent of the federal 0/15/20% long-term schedule and no distinction between short-term and long-term at the state level. Whether you held the asset a week or a decade, Kansas taxes the whole gain as ordinary income.
What makes Kansas unusual is how little its brackets do. The state collapsed its old three-bracket schedule (3.1% / 5.25% / 5.7%) into just two brackets under Senate Bill 1 of the 2024 special session — 5.20% and 5.58% — and the higher rate begins at only $23,000 of taxable income ($46,000 for joint filers). In practice, anyone with more than that in ordinary income pays 5.58% on their capital gain, so Kansas behaves like a near-flat 5.58% state on any meaningful gain. Kansas levies no local or city income tax on capital gains, so 5.58% is the whole state story.
How does Kansas stack on top of federal?
The two systems run in parallel and the amounts are added — Kansas does not replace or absorb the federal tax. For a long-term gain, you owe:
- Federal: 0%, 15%, or 20% depending on where the gain stacks on your taxable income, under IRC §1(h);
- Federal NIIT: an extra 3.8% on net investment income once MAGI passes $200,000 (single) / $250,000 (joint), under IRC §1411; and
- Kansas: your marginal state rate, 5.20% or 5.58% (5.58% on any gain once taxable income tops $23,000 / $46,000 joint), on the full gain under K.S.A. §79-32,110.
Add those together and a top-bracket Kansan with a long-term gain can pay roughly 20% + 3.8% + 5.58% ≈ 29.4%. A short-term gain is worse, because the federal side jumps to ordinary rates (up to 37%) instead of 20% — while Kansas stays at 5.58%. The calculator above computes each layer separately and shows you the exact bands.
What are the 2026 Kansas income-tax brackets?
Kansas has just two brackets, shown here for a single filer. Married-filing-jointly uses the same rates but doubles the threshold to $46,000; head-of-household and married-filing-separately use the single threshold. These rates and thresholds are set by statute (SB 1, 2024 Special Session) and are owner-verifiable against the Kansas Department of Revenue.
| Kansas taxable income (single) | Marginal rate |
|---|---|
| $0 – $23,000 | 5.20% |
| Over $23,000 | 5.58% |
| Married-filing-jointly threshold | $46,000 |
| Local / municipal income tax on gains | None |
How this calculator works & where the numbers come from
No black box. The federal side uses the same unit-tested engine as our main calculator: net gain = proceeds − basis; classify by holding period; for long-term gains, subtract the standard deduction and stack the gain across the 0/15/20% bands per IRC §1(h); add 3.8% NIIT where modified AGI crosses the §1411 threshold; short-term gains are computed as the true marginal difference in ordinary tax. The Kansas side takes the same taxable gain (after any §121 exclusion, since Kansas begins from federal AGI), subtracts the Kansas standard deduction from your ordinary income, and stacks the gain across the two Kansas brackets (5.20% / 5.58%) under K.S.A. §79-32,110. Because the top bracket starts at $23,000 ($46,000 joint), any meaningful gain lands at 5.58%. The two results are summed.
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Primary sources (linked, not just named)
- K.S.A. §79-32,110 — Kansas income tax rates
- Kansas Department of Revenue
- Kansas DOR — individual income tax
- 26 U.S.C. §1(h) — federal capital gains rates
- 26 U.S.C. §1411 — 3.8% NIIT
- 26 U.S.C. §121 — home-sale exclusion
- IRS Topic No. 409 — Capital Gains and Losses
- IRS Publication 550 — Investment Income
Kansas capital gains tax, answered
Does Kansas have a separate capital gains tax rate?
No. Kansas has no preferential capital gains rate. Under K.S.A. §79-32,110, a capital gain — short-term or long-term — is taxed as ordinary income in Kansas's two brackets: 5.20% up to $23,000 of taxable income ($46,000 joint) and 5.58% above. The federal short/long distinction does not exist at the Kansas level.
How much is capital gains tax in Kansas for 2026?
Your Kansas tax equals the gain taxed at your marginal state rate (5.20% or 5.58%), added to the federal capital gains tax. Federally, a long-term gain is taxed at 0/15/20% (IRC §1(h)) plus 3.8% NIIT for high earners. Because Kansas's 5.58% bracket starts at just $23,000, most sellers pay 5.58% on the gain; a top earner can pay near 20% + 3.8% + 5.58% ≈ 29.4% combined. Use the calculator above for your exact figure.
How does Kansas capital gains tax stack on top of federal?
They are computed separately and summed. The federal side taxes long-term gains at 0/15/20% and adds 3.8% NIIT for high earners; short-term gains are ordinary income. Kansas ignores the holding period and taxes the entire gain as ordinary income at 5.20%–5.58%. Your total tax is federal + NIIT + Kansas.
Why is Kansas almost a flat tax on capital gains?
Kansas has only two brackets and they are close together. The 5.20% rate applies to the first $23,000 of taxable income ($46,000 joint) and 5.58% to everything above. Because the higher rate begins so low, anyone with meaningful other income pays 5.58% on essentially the whole gain — so Kansas effectively taxes capital gains at a near-flat 5.58%. There is no high-income surtax and no local income tax on gains.
Does the 3.8% federal NIIT apply to Kansans?
Yes — the NIIT is federal and applies in every state. Once modified AGI exceeds $200,000 (single) or $250,000 (married filing jointly), the 3.8% surtax under IRC §1411 hits the lesser of your net investment income or the amount over the threshold. It is added to your federal capital gains tax and is entirely separate from Kansas state tax.
Does Kansas conform to the $250k/$500k home-sale exclusion?
Yes. Kansas begins from federal adjusted gross income, so the IRC §121 exclusion of up to $250,000 ($500,000 married filing jointly) on a primary residence is already removed before Kansas applies its rate. Only gain above the exclusion is taxed, as ordinary income. See our home-sale hub for the mechanics.
Compare Kansas with other state hubs
Kansas's effective 5.58% on capital gains is moderate — heavier than flat-tax Pennsylvania (3.07%) and Ohio (3.5%), lighter than New York (over 10%) and California (up to 13.3%), and far above the no-income-tax states like Texas and Florida. Every state page combines the same unit-tested federal engine with that state's own rules, so you always see the full combined number. The main Capital Gains Tax Calculator lets you fold any state's rate into your federal receipt.