Franchise Tax

There is no Kansas franchise tax for tax year 2011 and after.

How the Franchise Tax Law Works

The franchise tax and fee law requires businesses to pay a franchise tax to the Kansas Department of Revenue and a separate filing fee to the Secretary of State. Both are due the 15th day of the fourth month following the tax year end—e.g. April 15, for entities with a Dec. 31 tax year end.

Kansas Department of Revenue — Franchise Tax (Maximum tax of $20,000)

Business entities that have $1 million of net worth or more in the state must pay to the Kansas Department of Revenue for tax year 2010 a franchise tax of .03125 percent of the total net worth. Business entities required to pay the tax will file a return with the Kansas Department of Revenue, which must be accompanied by the taxpayer’s balance sheet.

Rates:

Tax Year 2007 - .125% (.00125)
Tax Year 2008 - .09375% (.0009375)
Tax Year 2009 - .0625% (.000625)
Tax Year 2010 - .03125% (.0003125)
Tax Year 2011 - No franchise tax

The franchise tax may be filed electronically or by paper on the Franchise Tax Return, Form K-150. Additional forms and instructions may be obtained at the website, or you may call 785-368-8222 if you have questions about the franchise tax.

Secretary of State — Filing Fee ($55)

The filing fee must be paid to the Kansas Secretary of State with the entity’s annual report. Both may be submitted electronically at the Kansas Business Center. To file the annual report and pay the filing fee by mail, you may visit the Kansas Secretary of State's Web site to download and print forms and instructions. The annual report and $55 fee should be mailed to:

Kansas Secretary of State
Memorial Hall, 1st Floor
120 SW 10th Avenue
Topeka, KS 66612-1594

Please note: Do not send your filing fee and annual reports to the Department of Revenue. Your business will forfeit if the correct annual report and filing fee are not received by the Secretary of State on or before your forfeiture date.