Kansas taxes capital gains at 5.7%. Combined with federal taxes, your effective rate on a home sale could reach 24.5%.
KS State Rate
5.7%
Top marginal rate
Federal Rate
15%
Most common long-term bracket
Combined Effective
24.5%
On $150K taxable gain (example)
After the $250K/$500K exclusion, here's what a typical seller might owe.
If Kansas is where your primary residence is located and you've lived there at least 2 of the last 5 years, you can exclude up to $250K (single) or $500K (married filing jointly) of your capital gain from both federal and state taxes.
Investment and rental properties in Kansas don't qualify for the exclusion. You'll owe 5.7% state tax plus federal tax on the full gain, plus 25% depreciation recapture on any depreciation claimed.
In Kansas, homes sold in October sell for 13% more than those sold in January (-17%). Timing your sale right can offset a significant portion of your tax bill.
Capital gains tax rates on home sales in Kansas and nearby states.
| State | Rate | Tax on $150K Gain | Notes |
|---|---|---|---|
| 4.4% | $6,600 | Flat tax rate | |
| 4.75% | $7,125 | Top marginal rate | |
| 4.8% | $7,200 | Top marginal rate | |
KansasYou | 5.7% | $8,550 | Top marginal rate |
| 5.84% | $8,760 | Top marginal rate |
Selling in Colorado instead of Kansas would save $1,950 in state tax on a $150K gain.
Kansas taxes capital gains as ordinary income with a top marginal rate of 5.7%. The graduated system means most sellers with significant gains will hit the top bracket.
The Kansas City metro (which straddles the Missouri border) generates the most real estate activity. Property values vary significantly between the Kansas and Missouri sides.
Kansas does not offer a preferential rate for capital gains. All investment income is treated the same as ordinary income.
The state's affordable housing stock means most primary residence sellers have gains well within the federal exclusion.
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