Property Management Taxes In Kansas

This guide covers the taxes that actually apply to a property management company operating in Kansas, and to the rental income it handles on behalf of owners. Every figure below is tied to the statute, agency rule, or published guidance that sets it, so you can confirm a rate or deadline before acting on it.

State Income Tax On Rental And Management Income

Kansas taxes individual income under a two bracket structure created by 2024 Special Session SB 1 and codified at K.S.A. 79-32,110. Net rental income and property management fees flow into Kansas taxable income like any other business income, and pass-through owners report their share on the individual return. Kansas also imposes a corporate income tax with a normal tax plus a surtax. Nonresident owners of Kansas rental property are taxed on Kansas source income, which expressly includes income from real property located in Kansas.

• For tax year 2024 and all tax years thereafter, married taxpayers filing jointly pay 5.2% of Kansas taxable income not over $46,000, and $2,392 plus 5.58% of the excess over $46,000. (K.S.A. 79-32,110(a))
• For all other filing statuses, the rate is 5.2% of Kansas taxable income not over $23,000, and $1,196 plus 5.58% of the excess over $23,000. (K.S.A. 79-32,110(a))
• Kansas corporations pay a normal tax of 4% of Kansas taxable income plus a surtax of 3% of Kansas taxable income in excess of $50,000. (K.S.A. 79-32,110(c))
• The two bracket structure was enacted by 2024 Special Session Senate Bill 1, which amended K.S.A. 2023 Supp. 79-32,110 and also raised the standard deduction and personal exemption, effective for tax year 2024 and after. (2024 Special Session SB 1)
• The Kansas standard deduction for tax year 2025 is $3,605 single, $8,240 married filing joint, $6,180 head of household, and $4,120 married filing separate. (2025 Kansas Individual Income Tax Booklet)
• Nonresidents complete Part B of Schedule S to determine the Kansas source percentage of total income, and income from real property located in Kansas is Kansas source income. (2025 Kansas Individual Income Tax Booklet, Schedule S Part B instructions)

Sales Tax On Rent: What Applies And What Does Not

Long term residential rent is not subject to Kansas sales tax. The Kansas Department of Revenue states plainly that the rental of real property, such as residential housing, is not subject to sales tax. Short term lodging is different: hotel and motel room rentals are subject to the 6.5% state sales tax plus local sales tax, and many cities and counties add a separate transient guest tax on stays of 28 consecutive days or less. A guest who stays 29 or more consecutive days is no longer a transient guest and the guest tax does not apply.

• The Kansas state sales tax rate is 6.50%, and local jurisdictions may add additional sales tax on top of that. (Pub. KS-1510, Kansas Sales and Compensating Use Tax)
• Rental of real property, such as residential housing, is not subject to Kansas sales tax. (Pub. KS-1510, Kansas Sales and Compensating Use Tax)
• Hotel and motel room rentals are taxable under Kansas sales tax, and rooms rented for 28 consecutive days or less may also be subject to an additional transient guest tax. (Pub. KS-1510, Kansas Sales and Compensating Use Tax)
• Some Kansas cities and counties impose a transient guest tax in addition to sales tax on the rental of rooms, lodging, or other sleeping accommodations. It applies when there are more than two bedrooms furnished for the accommodation of guests and the room is rented for 28 consecutive days or less. Rates are set locally, so the city or county clerk must be contacted for the applicable rate. (Kansas Department of Revenue, Transient Guest Tax)
• Transient guest tax is not collected on the rental of sleeping rooms for more than 28 consecutive days to the same person or entity. A guest who occupies a room for 29 or more consecutive days is no longer a transient guest. (Pub. KS-1540, Business Taxes for Hotels, Motels and Restaurants)
• There are only two exemptions from charging transient guest tax: the sleeping rooms are a direct purchase by the federal government, its agencies or instrumentalities, or the rooms are rented to the same guest for more than 28 consecutive days. A Kansas sales tax exemption does not by itself exempt a stay from transient guest tax. (Pub. KS-1540, Business Taxes for Hotels, Motels and Restaurants)
• Tangible personal property used as a dwelling, such as a mobile home, is exempt from Kansas sales tax when leased or rented for more than 28 consecutive days. (Pub. KS-1510, Kansas Sales and Compensating Use Tax)
• Transient guest tax is reported on Form TG-1, the Kansas Transient Guest Tax Return, which can be filed electronically. (Kansas Department of Revenue, Transient Guest Tax)

Property Tax

Kansas property tax is administered county by county. The county appraiser lists and values property, the assessed value is a statutory percentage of appraised value, and the mill levy set by local taxing units is applied to that assessed value. Residential property, including tenant occupied rental housing, is assessed at 11.5% of appraised value. Tax statements go out in December and payment is split between December 20 and May 10.

• The county appraiser is responsible for listing and valuing property in a uniform and equal manner. The calculation is appraised value times assessment rate equals assessed value, then assessed value times mill levy divided by 1,000 equals property tax. (Kansas Property Tax Guide, How Property Taxes Are Calculated)
• Residential property in Kansas is assessed at 11.5% of appraised value. (Kansas Property Tax Guide, How Property Taxes Are Calculated)
• The mill levy is the combined tax rate set by all local taxing units. One mill equals one dollar of tax per $1,000 of assessed value. (Kansas Property Tax Guide, How Property Taxes Are Calculated)
• Counties mail real property valuation notices by March 1, and an informal meeting with the county appraiser must be held by May 15. Real property equalization appeals are due 30 days from the mailing of the notice. (K.S.A. 79-1460 and K.S.A. 79-1448, Kansas Property Tax Calendar)
• The county treasurer sends tax statements on December 1. The first half or the full year payment is due December 20, and the second half is due May 10 of the following year. (K.S.A. 79-2001 and K.S.A. 79-2004, Kansas Property Tax Calendar)
• For taxable year 2024 and all taxable years thereafter, property used for residential purposes is exempt from the statewide school levy imposed under K.S.A. 72-5142 to the extent of $75,000 of its appraised valuation. The exemption is limited to that 20 mill school district levy and does not reduce county, city, or other local levies. (K.S.A. 79-201x)

Withholding And Employer Taxes

A Kansas property management company with employees registers with the Kansas Department of Revenue for income tax withholding and with the Kansas Department of Labor for unemployment tax. There is one Kansas rule managers should know well: management and consulting fees paid to a nonresident are subject to 5% Kansas withholding when the services are physically performed in Kansas, and the Department of Revenue's own published example is a Kansas real estate firm paying an out of state company to manage its Kansas rental property.

• Employers and payers must register with the Kansas Department of Revenue if they are required to withhold federal income tax or make other taxable payments subject to Kansas withholding. Registration is done through the KDOR Customer Service Center using the federal EIN. (KW-100, Kansas Withholding Tax Guide)
• Form K-4 is the Kansas employee withholding allowance certificate. If an employee does not submit a K-4, the employer withholds at the single rate with no allowances. (KW-100, Kansas Withholding Tax Guide)
• Kansas withholding deposits are made on Form KW-5, filed electronically for each reporting period even when no tax was withheld. Frequency is set by annual withholding: annual under $200, quarterly $200.01 to $1,200, monthly $1,200.01 to $8,000, semi-monthly $8,000.01 to $100,000, and quad-monthly above $100,000. (KW-100, Kansas Withholding Tax Guide)
• Management and consulting fees paid to a nonresident are subject to Kansas withholding at 5% of the fee when the payment is made by a Kansas entity in the normal course of its trade, business, or other for profit venture and the nonresident physically performs the services in Kansas. The requirement does not apply to individuals or to governmental or nonprofit entities. KDOR's published example is a Kansas real estate firm that pays a Missouri company $1,000 per month to manage its Kansas rental property, where the Kansas firm must withhold 5% of each payment. (K.S.A. 79-3296 and K.S.A. 79-32,100d, KW-100 Kansas Withholding Tax Guide)
• The Kansas unemployment insurance taxable wage base is $14,000 for 2025, and beginning in 2026 the wage base is indexed to 50% of the State Average Annual Wage. (Kansas Department of Labor, Unemployment Tax)
• Employers with 26 or more employees must file unemployment reports online at KansasLabor.gov. Employers with 25 or fewer employees may download Form K-CNS-100 and mail it to the Kansas Department of Labor. (Kansas Department of Labor, Employer Services)

Federal Obligations

Federal rules sit on top of Kansas rules. Owners report rental real estate on Schedule E of Form 1040, the building is depreciated over 27.5 years, land is never depreciable, and managers who pay vendors on an owner's behalf have information return duties. The 1099 threshold changes between 2025 and 2026, which matters for year end processes.

• Individuals report rental real estate income and expenses on Schedule E (Form 1040), Supplemental Income and Loss. Form 4562 may also be required to report depreciation. (IRS Publication 527, Residential Rental Property)
• Residential rental property is depreciated over a 27.5 year recovery period under the MACRS General Depreciation System using the mid-month convention. (IRS Publication 527, Residential Rental Property)
• Land cannot be depreciated, so the purchase price must be allocated between land and building using fair market values or assessed values. (IRS Publication 527, Residential Rental Property)
• Appliances and carpets are 5 year property under the General Depreciation System, using the 200% declining balance method and the half-year convention unless the mid-quarter convention applies. (IRS Publication 527, Residential Rental Property)
• The information return reporting threshold was $600 for payments made during 2025. Under the One, Big, Beautiful Bill Act the threshold rises to $2,000 in a calendar year for payments made after December 31, 2025, with inflation adjustment for calendar years after 2026. The change applies to nonemployee compensation on Form 1099-NEC and to rents and other income payments on Form 1099-MISC. (Instructions for Forms 1099-MISC and 1099-NEC)

Filing Deadlines

Kansas due dates for a property management company cluster around three systems: income tax in April, sales and transient guest tax on the 25th of the following month, and payroll reconciliations in January. Property tax payments are split between December and May.

• April 15, 2026 is the due date for filing 2025 Kansas income tax returns on Form K-40. (2025 Kansas Individual Income Tax Booklet)
• Kansas sales tax returns are due by the 25th of the month following the reporting period. Filing frequency is based on annual liability: annual under $1,000, quarterly $1,000 to $5,000, and monthly above $5,000. (Pub. KS-1510, Kansas Sales and Compensating Use Tax)
• Form KW-3, the annual Kansas withholding tax return and W-2 transmittal, is due by January 31 following the tax year. W-2 forms must be furnished to employees and filed with the Department of Revenue by January 31. (KW-100, Kansas Withholding Tax Guide)
• Quarterly withholding filers deposit on April 25, July 25, October 25, and January 25. Monthly filers deposit by the 15th of the following month. Annual filers deposit by January 25. (KW-100, Kansas Withholding Tax Guide)
• Property tax is due December 20 for the first half or the full year, with the second half due May 10 of the following year. (K.S.A. 79-2004, Kansas Property Tax Calendar)

Registration And Recordkeeping

Kansas registration runs through a single business tax application at the Kansas Customer Service Center, which covers sales tax, transient guest tax, and withholding accounts. Record retention is three years for both sales and withholding records, which is shorter than many operators assume.

• Businesses register for Kansas tax accounts by completing a business tax application through the Kansas Customer Service Center, or in person for same day service. (Pub. KS-1510, Kansas Sales and Compensating Use Tax)
• Businesses must maintain sales records for the current year and at least three prior years. (Pub. KS-1510, Kansas Sales and Compensating Use Tax)
• Employers must retain withholding records for at least 3 years after the date the withholding tax was due, or paid, whichever is later. (KW-100, Kansas Withholding Tax Guide)
• Employers must separately register with the Kansas Department of Labor for unemployment insurance. Employers with 26 or more employees register and file online at KansasLabor.gov. (Kansas Department of Labor, Employer Services)

Recent Changes Worth Tracking

• Effective Tax year 2024 and all tax years thereafter: 2024 Special Session SB 1 replaced the prior graduated individual income tax brackets with a two bracket structure of 5.2% and 5.58%, and increased the standard deduction and personal exemption. (2024 Special Session SB 1, amending K.S.A. 2023 Supp. 79-32,110)
• Effective Taxable year 2024 and all taxable years thereafter: The residential exemption from the statewide 20 mill school finance levy increased to $75,000 of appraised valuation. (K.S.A. 79-201x)
• Effective Tax years commencing on or after January 1, 2027: 2025 HB 2231 moves most corporate income tax and privilege tax filers from a three factor apportionment formula to a single sales factor formula. (2025 Kansas Tax Legislation and Related Guidance Documents)
• Effective Tax year 2025 and beyond: 2025 legislation codified an additional $2,320 personal exemption for head of household filers, increased the disabled veteran personal exemption from $2,250 to $2,320, and recognized an unborn child as a dependent allowed a $2,320 personal exemption on the K-40. (2025 Kansas Tax Legislation and Related Guidance Documents)
• Effective 2026 for the indexed wage base: The Kansas unemployment insurance taxable wage base held at $14,000 for 2025 and becomes indexed to 50% of the State Average Annual Wage beginning in 2026. (Kansas Department of Labor, Unemployment Tax)

Tax is one half of Kansas compliance. See our guide to Kansas property management laws and regulations for licensing, trust account, and disclosure rules.

Keeping This Straight

Tax rates and thresholds move more often than most operators expect, and the figures circulating in older articles go stale quickly. Check any rate against its citation before you quote it to an owner, and re-check them at the start of each tax year.

This guide is a starting point for professional managers, not tax or legal advice. For a specific filing, work with a CPA familiar with Kansas rental property, and confirm current figures with the Kansas Department of Revenue or the IRS. The underlying books have to support each figure, which is the case for rental property accounting handled as you go.

Sources

Every fact above is drawn from one of the official sources below.

• K.S.A. 79-32,110(a), Kansas State Legislature, K.S.A. 79-32,110
• 2024 Special Session SB 1, Kansas State Legislature, 2024 Special Session SB 1
• 2025 Kansas Individual Income Tax Booklet, Kansas Department of Revenue, 2025 Income Tax Booklet
• Pub. KS-1510, Kansas Sales and Compensating Use Tax, Kansas Department of Revenue, Pub. KS-1510
• Kansas Department of Revenue, Transient Guest Tax, Kansas Department of Revenue, Transient Guest Tax
• Pub. KS-1540, Business Taxes for Hotels, Motels and Restaurants, Kansas Department of Revenue, Pub. KS-1540
• Kansas Property Tax Guide, How Property Taxes Are Calculated, Kansas Department of Revenue, Division of Property Valuation
• K.S.A. 79-1460 and K.S.A. 79-1448, Kansas Property Tax Calendar, Kansas Department of Revenue, Property Tax Calendar
• K.S.A. 79-201x, Kansas Office of Revisor of Statutes, K.S.A. 79-201x
• KW-100, Kansas Withholding Tax Guide, Kansas Department of Revenue, KW-100
• Kansas Department of Labor, Unemployment Tax, Kansas Department of Labor
• Kansas Department of Labor, Employer Services, Kansas Department of Labor
• IRS Publication 527, Residential Rental Property, Internal Revenue Service, Publication 527
• Instructions for Forms 1099-MISC and 1099-NEC, Internal Revenue Service, Instructions for Forms 1099-MISC and 1099-NEC
• 2025 Kansas Tax Legislation and Related Guidance Documents, Kansas Department of Revenue, 2025 Legislative Changes