Kansas has no local income tax on wages. State law bars every city, county, and township from taxing earned income, so your paycheck will never show a local withholding line. The only local levy that touches income at all is the intangibles tax, a narrow charge on interest, dividends, and other passive earnings that applies only if you live in a jurisdiction that has adopted it.
Why Your Paycheck Is Safe From Local Tax
Two statutes lock the prohibition in place. K.S.A. 12-140 bars any Kansas city from levying a tax on income “from whatever source derived,” with one carve-out for the intangibles tax authorized under K.S.A. 12-1,101 through 12-1,109.1Kansas State Legislature. Kansas Code 12-140 – Cities Prohibited From Levying Taxes on Income; Exception K.S.A. 19-101a imposes the same restriction on counties in nearly identical language.2Kansas Office of Revisor of Statutes. Kansas Code 19-101a – County Home Rule Powers; Limitations
So wages, salary, commissions, and business profits are off limits to local taxing authorities. The only income-related deductions on a Kansas pay stub are federal taxes and the Kansas state income tax.
The One Exception: The Local Intangibles Tax
The intangibles tax is a local-option levy on passive earnings from financial assets. It covers gross earnings from savings-account interest, stock dividends, bond interest, accounts receivable, and mortgage income.3Kansas Department of Revenue. Intangibles It does not touch wages, salaries, commissions, or business profits.
A county, city, or township can only collect it if its governing body has formally adopted it, and many jurisdictions have repealed theirs over the years. As of 2026, roughly 21 counties impose a county-level intangibles tax, and some cities and townships add their own rates even in counties that do not.4Kansas Department of Revenue. Form 200 2026 Local Intangibles Tax Return Where you lived on January 1 of the tax year sets which jurisdiction’s rate applies for the whole year, even if you move later.
Rate Caps
Counties can impose between 0.125% and 0.75% of gross intangible earnings. Cities and townships can impose between 0.125% and 2.25%.5Kansas Office of Revisor of Statutes. Kansas Code 12-1,101 – Tax Upon Gross Earnings Derived From Money, Notes and Other Evidence of Debt If a city levies the tax inside a county that also levies it, you owe both, but most taxpayers who owe anything pay well under 1%. The rate chart published with Form 200 each year lists the exact percentage for every jurisdiction.
What’s Exempt
Several categories of investment income are not subject to the tax:
- Interest on U.S. Treasury securities and other federal obligations.
- Interest on bonds issued by the State of Kansas or any Kansas municipality or taxing subdivision.
- Earnings inside IRAs, Keogh plans, and other qualified retirement accounts.
- Interest on notes secured by Kansas real estate mortgages where a registration fee has already been paid.
- Dividends from stock of a Kansas-based bank, savings and loan, credit union, or regulated investment company, and certain S-corporation distributions.
If you were 60 or older on January 1, or were blind or disabled for the entire preceding year, and your total household income was $20,000 or less, you can claim up to a $5,000 exemption on intangible earnings. That exemption phases out as household income rises from $15,000 to $20,000, and only one spouse can claim it on a joint return.4Kansas Department of Revenue. Form 200 2026 Local Intangibles Tax Return
Filing Form 200 if You Owe
If you live in a jurisdiction that imposes the tax and your tax due is $5 or more, you must file Form 200, the Local Intangibles Tax Return. If the tax works out to less than $5, or your jurisdiction has no intangibles tax, you don’t file at all.4Kansas Department of Revenue. Form 200 2026 Local Intangibles Tax Return
Pull your 1099-INT and 1099-DIV statements, total your intangible income, subtract any exempt amounts, and submit the form. You do not calculate or pay the tax yourself. The county clerk computes the liability using the local rate, and the county treasurer mails you a bill, usually in November.4Kansas Department of Revenue. Form 200 2026 Local Intangibles Tax Return
A few details that catch people off guard:
- File Form 200 with the county clerk in the county where you lived on January 1, not with the Kansas Department of Revenue.
- The deadline is April 15, matching the federal filing date, with no extensions available.
- A late return triggers interest and penalties, which the county treasurer adds to the bill.
Form 200 and the current rate chart are posted on the Kansas Department of Revenue website under the intangibles tax section.3Kansas Department of Revenue. Intangibles