Kansas Tax Preparer Requirements (2026)

Kansas is one of the least restrictive states for paid tax preparers. No state license, no exam, no state-mandated continuing education: just a federal PTIN and, for higher-volume preparers, compliance with a 50-return e-file threshold. What Kansas does offer is a genuinely complex return landscape: the nation's top wheat and cattle state brings heavy Schedule F volume; Wichita anchors North America's general aviation industry with a specialized K-26 aerospace credit; south-central Kansas oil and gas mineral interests layer severance tax, IDC deductions, and percentage depletion onto already-complex returns; and the Kansas City metro straddles a state line that trips up thousands of clients every year. Add the 2024 Social Security full exemption, the SB 1 rate restructure, and rolling OBBBA conformity, and Kansas provides genuine complexity for preparers ready to specialize. This guide covers every requirement and opportunity a Kansas paid preparer needs to know for TY2025 returns filed in 2026.

Does Kansas Require a State Tax Preparer License?

Kansas has NO state license or registration requirement for non-credentialed paid tax preparers. Any individual who obtains a federal PTIN may legally prepare Kansas individual income tax returns for compensation. The Kansas Board of Accountancy has no authority over non-credentialed tax preparers or bookkeepers.

Governing statute K.S.A. 79-3220 defines "tax preparer" broadly but imposes only an e-file threshold, not a credentialing requirement. There is no Kansas surety bond requirement, no state exam, and no state CE mandate for non-credentialed preparers.

PTIN and EFIN: Federal Requirements Apply

Every paid preparer must obtain and renew a federal PTIN annually. The 2026 PTIN renewal fee is $18.75 ($10.00 IRS base fee plus $8.75 third-party contractor fee). Renew by December 31 at irs.gov/ptin. Renewal takes approximately 15 minutes online.

An EFIN (Electronic Filing Identification Number) is required if you plan to e-file Kansas returns. EFIN applications are processed through IRS e-Services. Kansas does not issue a separate state EFIN; participation in the IRS Fed/State e-File program covers Kansas e-filing upon IRS acceptance.

See How to Get a PTIN and How to Get an EFIN for step-by-step instructions on both federal registrations.

FTC Safeguards Rule (WISP)

Every paid tax preparer, including solo practitioners, must maintain a Written Information Security Plan (WISP) under the Gramm-Leach-Bliley Act (15 U.S.C. 6801(b)). Required elements include a designated responsible individual, multi-factor authentication (MFA) for all systems containing customer data, a risk assessment, and an incident response plan. FTC penalties reach up to $46,517 per violation per day. A free WISP template is available at IRS Publication 5708.

Optional Credentials That Strengthen Your Kansas Practice

While Kansas requires nothing beyond a PTIN, earning the IRS Annual Filing Season Program (AFSP) Record of Completion gives non-credentialed preparers limited IRS representation rights and places them in the IRS "Find a Tax Pro" directory. For preparers handling the complexity Kansas offers (agriculture, oil and gas, aviation credits, multi-state military returns), additional continuing education and the AFSP credential are worth pursuing.

Kansas Individual Income Tax for TY2025-2026

Income Tax Rates and Structure

Kansas enacted SB 1 in June 2024, restructuring the state income tax to a two-bracket system. For Tax Year 2025 (returns filed in early 2026) and TY2026, the rates are:

TY2026 note: Rates are unchanged from TY2025. Senate Bill 269 included a flat-tax trigger, but KDOR confirmed in August 2025 that the FY2025 revenue target was not met. No rate reduction applies for TY2026. Monitor the Kansas legislature for future flat-tax proposals.

Standard Deduction (TY2025)

• Single: $3,605
• Married Filing Jointly: $8,240
• Head of Household: $6,180
• Married Filing Separately: $4,120

Note: Kansas standard deductions are substantially lower than the federal standard deduction. Many Kansas clients who take the federal standard deduction may still benefit from itemizing on the Kansas return. Review Schedule A carefully for each client.

Personal Exemptions

• Married Filing Jointly: $18,320
• All other filing statuses: $9,160
• Per dependent: $2,320

Social Security: Fully Exempt (All Taxpayers, Effective TY2024)

This is the single most impactful Kansas tax change in years. SB 1 eliminated the prior $75,000 AGI cap and fully exempted Social Security benefits for ALL Kansas taxpayers starting with TY2024. Railroad Retirement Benefits receive the same treatment. There is no income limit, no application required, and no phase-out. A Kansas client with $200,000 in total income and $36,000 in Social Security benefits excludes the entire $36,000 from Kansas taxable income.

For preparers with retiree clients who previously saw a partial Kansas Social Security tax, the full exemption is a key conversation to have. TY2025 is the second year of this rule; clients may not yet realize the full benefit.

Federal Income Tax: NOT Deductible in Kansas

Kansas does not allow a deduction for federal income taxes paid. There is no Schedule S subtraction for federal taxes. This is a common point of confusion for clients who have heard that some states allow this deduction. Kansas is not one of them.

Military Income

Military retirement pay is fully exempt from Kansas income tax, regardless of retirement amount or age. Active-duty nonresidents subtract military pay on Schedule S line A15. The Military Spouses Residency Relief Act (MSRRA) applies: military spouses who maintain domicile in another state are not taxed in Kansas on their wages even if stationed here. See Section 6 for Fort Riley and Fort Leavenworth market details.

Capital Gains

Kansas taxes capital gains as ordinary income at the standard two-bracket rates (5.20% and 5.58%). There is no preferential long-term capital gains rate at the state level. Gold and silver coin and bullion transactions are now exempt from Kansas income tax per HB 2515 (verify the effective date for each client's transaction year).

Kansas Earned Income Tax Credit

Kansas offers a state EITC equal to 17% of the federal Earned Income Tax Credit. The credit is partially refundable. Eligibility mirrors the federal EITC: Kansas residents only, with valid Social Security numbers. ITIN filers do NOT qualify for the Kansas EITC, even if they qualify for other Kansas credits. This is an important distinction for preparers serving immigrant meatpacking communities in Garden City, Liberal, and Dodge City (see Section 6).

OBBBA Conformity (Rolling IRC Conformity)

Kansas has rolling Internal Revenue Code (IRC) conformity, meaning new federal tax law flows through automatically without requiring state legislative action. For TY2025, the following OBBBA provisions apply on the Kansas return:

• Tips deduction: up to $25,000
• Overtime compensation deduction: up to $12,500 (single) or $25,000 (married filing jointly)
• 100% bonus depreciation: flows through to Kansas business returns

This is the opposite of states like South Carolina that do not conform and require add-backs. Kansas clients with qualifying tips income or overtime pay, or businesses taking bonus depreciation, get the same deductions at the state level as the federal level.

Local Taxes in Kansas

Kansas cities cannot levy earned income taxes or wage taxes. There is NO city income tax anywhere in Kansas.

Kansas City, KS vs. Kansas City, MO: A Critical Distinction

A common and costly confusion: Kansas City, Kansas (KCK) has no earnings tax. Kansas City, Missouri (KCMO), directly across the state line, imposes a 1% earnings tax on wages earned within the KCMO city limits. Clients who live in KCK but commute to work in KCMO owe the Missouri 1% earnings tax on those wages. They may also need to file a Missouri nonresident return. Confirm each client's work location, not just their home address.

Local Intangibles Tax

Kansas is one of the few states that allows counties to levy a local intangibles tax on interest income, dividend income, and royalties. Approximately one-third of Kansas counties levy this tax, at a rate of up to 0.75%. Clients with investment income or royalty income (including oil and gas royalties) should check whether their county imposes this tax.

The intangibles tax is reported on Form 200, filed with the County Clerk (not KDOR). Riley County, home to Fort Riley, is one known levying county. The deadline and filing requirements vary by county; direct clients to their county clerk's office to confirm current obligations.

Kansas E-File Mandate

Kansas imposes an e-file mandate on paid tax preparers under K.S.A. 79-3220, triggered by volume.

Kansas threshold: If you prepare 50 or more Kansas individual income tax returns in a calendar year (counting all employees and locations), the e-file mandate applies permanently in all future years.

Compliance standard: Once mandated, at least 90% of authorized Kansas individual returns must be e-filed. The 10% paper allowance covers clients who specifically request paper filing or situations where e-filing is technically unavailable.

Penalties: No specific statutory penalties currently exist for non-compliance with the Kansas e-file mandate. KDOR may recommend penalties on a case-by-case basis. The practical risk is audit scrutiny and potential referral to the IRS for EFIN review.

Business returns: There is no separate e-file mandate for Kansas business returns beyond the individual return threshold above. If your total Kansas return volume (individual plus business) pushes you over 50, the mandate covers individual returns; business return e-file requirements follow KDOR guidance separately.

For EFIN setup guidance, see How to Get an EFIN.

Starting a Tax Preparation Business in Kansas

LLC Formation

Kansas LLCs are registered through the Secretary of State at sos.ks.gov.

• Articles of Organization online filing fee: approximately $85 (verify current fee at sos.ks.gov before filing)
• Biennial report fee: approximately $50 online (Kansas changed from annual to biennial reporting in January 2024)
• Franchise tax: NONE. Kansas abolished its franchise tax in 2011.

Sales Tax: Tax Preparation Services Are Exempt

Tax preparation services are NOT subject to Kansas sales tax. Professional services are not enumerated in K.S.A. 79-3603, the statute that defines taxable services in Kansas. You do not need to collect or remit Kansas sales tax on your preparation fees. If you sell tangible products (printed forms, software media, etc.), those sales may be taxable; contact KDOR for specific guidance on your product mix.

Local Business Licenses

Kansas does not have a statewide business license. Many cities require local business licenses independently. Wichita, Overland Park, Kansas City KS, Topeka, and most larger cities have local license requirements. Fees vary by city and are typically based on business type and gross revenue. Contact your city's finance or business licensing office to confirm requirements.

Kansas Client Complexity: Five High-Value Niches

Kansas rewards specialization. Each of the five niches below represents a segment where client returns require significantly more expertise than a standard W-2 return and where preparers who can handle the complexity earn meaningfully higher fees.

1. Agriculture (Wheat, Cattle, and Row Crops)

Kansas is the nation's number one wheat-producing state and a top cattle state. Agricultural returns are among the highest-complexity returns in the individual income tax space. Key competencies for Kansas farm clients include:

• Schedule F (Profit or Loss from Farming): income, expenses, and basis tracking
• Section 179 expensing and 100% bonus depreciation on farm equipment
• Crop insurance proceeds: taxation and deferral election (Code Section 451(f))
• FSA (Farm Service Agency) payments: taxation and reporting requirements
• Farm estimated tax rules: two-thirds rule and January 15 vs. March 1 payment options
• Commodity marketing: forward contracts, hedge-to-arrive contracts, deferred grain income

Rural Kansas practices in Salina, Garden City, Dodge City, Liberal, and the eastern Kansas Flint Hills corridor can build high-revenue client bases on agricultural expertise alone.

2. Aviation and Aerospace in Wichita

Wichita is the general aviation capital of the world. Spirit AeroSystems, Cessna (Textron Aviation), and Learjet employ tens of thousands of workers in Sedgwick County. The K-26 Aerospace Industry Credit is the key Kansas-specific incentive:

• K-26 credit for employees: $5,000 per qualifying employee per year
• K-26 credit for employers: $15,000 per qualifying employer per year
• Extended through 2031
• Filed on Form K-26 with the Kansas individual or business return

Aerospace industry workers frequently have multi-state returns due to project travel, stock compensation (RSUs, stock options), and engineering contracts. Wichita-area preparers who understand the K-26 credit and multi-state allocation rules for aerospace clients have a durable competitive advantage.

3. Oil and Gas (South-Central Kansas)

South-central Kansas (Barton, Rice, Reno, Pratt, and surrounding counties) has active oil and natural gas production. Mineral-interest clients require expertise across multiple interacting rules:

• Kansas severance tax: 8% on the gross value of oil and gas production
• Natural gas severance exemption: Production is exempt from severance tax when the average annual price falls below $2.50/Mcf. Verify eligibility each production year with KDOR.
• Intangible drilling costs (IDC): Federal deduction rules apply; Kansas rolling conformity means IDC deductions flow through to the Kansas return
• Percentage depletion: 15% statutory depletion for oil and gas applies at both federal and Kansas levels under rolling conformity
• Form 200 intangibles tax: Royalty income from oil and gas may be subject to county intangibles tax; clients with royalty income in levying counties must file Form 200 with their county clerk

Oil and gas clients often have both mineral interests (royalties) and working interests (active business income), each with different tax treatment. This complexity supports premium preparation fees.

4. Military Communities (Fort Riley and Fort Leavenworth)

Kansas has two major Army installations: Fort Riley (Junction City / Manhattan area, Riley County) and Fort Leavenworth (Leavenworth, Leavenworth County). These installations generate high volumes of nonresident and part-year resident returns. Key rules for military clients:

• Military retirement income: fully exempt from Kansas income tax
• Active-duty nonresidents: subtract military pay on Schedule S line A15; only Kansas-source civilian income is taxable
• MSRRA: military spouses domiciled in another state are not taxed in Kansas on their wages earned in Kansas
• Riley County intangibles tax: service members with investment income who are Riley County residents should confirm whether the county intangibles tax applies to their interest and dividend income

Preparers near Fort Riley and Fort Leavenworth can build large practices on military-specific expertise. The combination of full military retirement exemption, Social Security exemption, and MSRRA creates genuine planning value that generic tax software alone does not communicate to clients.

5. Hispanic Meatpacking Communities (Garden City, Liberal, Dodge City)

Southwest Kansas is home to major beef and pork processing plants. Garden City, Liberal, and Dodge City have large Hispanic populations, many of whom are ITIN filers. Key rules for this client segment:

• Kansas EITC: ITIN filers do NOT qualify. The Kansas EITC requires a valid Social Security number on the return. This is a frequent and consequential error.
• Federal EITC: Qualifying ITIN filers who have qualifying children with SSNs may still qualify for the federal EITC under specific rules. Review each family's SSN/ITIN situation carefully.
• ITIN renewal: Many ITINs expire if not used. Proactively checking ITIN status before the filing season saves rejected returns.
• Bilingual service: Preparers who offer English/Spanish service have a significant competitive advantage in these markets. The qualifying population for both federal EITC and Child Tax Credit is large.

Part-Year Residents and Nonresidents

A part-year resident moved into or out of Kansas during the tax year. A nonresident earned Kansas-source income without establishing Kansas residency. Both use Kansas Form K-40 with Schedule S, Part B, for income allocation.

Part-Year Resident Income Allocation

Kansas taxes two categories of income for part-year residents:

1. All income earned during the period of Kansas residency (regardless of source)
2. Kansas-source income earned during the period of nonresidency (wages from Kansas employers, Kansas rental income, Kansas business income)

The allocation is reported on Schedule S Part B. Kansas prorates deductions based on the ratio of Kansas income to total income.

EITC Limitation for Part-Year Residents

The Kansas EITC is NOT available to part-year residents. Only full-year Kansas residents may claim the Kansas EITC. Part-year residents who qualify for the federal EITC do not receive the 17% Kansas state credit.

Key Kansas Tax Forms Reference

Frequently Asked Questions