Checking Box N on the K-120S without modeling it. The SALT Parity election is annual, but once you file a K-120S with Box N checked it is irrevocable for that year and "cannot be undone by filing an amended return." It applies a flat 5.58% entity-level tax to ALL covered income — including a resident owner's share that would otherwise have been taxed partly in the 5.20% bracket after deductions and exemptions — so for a modest single-owner S corp the election can easily cost more in Kansas tax than the federal SALT deduction is worth, especially now that the federal SALT cap sits at $40,000+ and many owners are no longer capped at all. It also triggers a C-corp-style estimated payment regime the owner did not previously have. Runner-up: assuming the K-120S is due March 15 like the federal 1120-S — it is due April 15, one month after the federal date.
S-corp election in Kansas
In short
None for an ordinary S corp — Kansas has no corporation franchise tax. The only entity-level tax is the OPTIONAL SALT Parity Act election (5.58% for 2026); banks/S&Ls pay privilege tax instead.
Does Kansas recognize the federal S election?
Kansas automatically recognizes the federal S election; there is no separate Kansas S election form. Per KDOR: "Corporations which elect under subchapter S of the Internal Revenue Code not to be taxed as a corporation must file a Kansas Small Business Corporation return" (Form K-120S), and "S corporations are generally exempt from tax. Each shareholder includes the income, or loss, from the S corporation on his or her income tax return." One important carve-out in the K-120S booklet: "Banks and savings and loan associations allowed to file as small business corporations at the federal level are not allowed to file as small business corporations at the Kansas level. Such entities are instead required to file a privilege tax return (K-130)."
Tax the entity still owes
Kansas repealed its corporation franchise tax (phased out, last applicable to 2010), so there is no annual franchise, net worth, or minimum tax on a Kansas S corporation. Banks, savings and loan associations and trust companies pay privilege tax on Form K-130 rather than filing as small business corporations. The only entity-level income tax an ordinary S corp can face is the elective SALT Parity tax at 5.58% (see PTET). Kansas individual rates for 2026: two brackets, 5.20% and 5.58% (5.58% above $23,000 single / $46,000 married filing jointly). KDOR Notice 25-06 (October 2, 2025) confirms these carry into 2026: FY2025 adjusted general revenue fund collections of $6,038,279,792 came in $88,481,523 BELOW the inflation-adjusted base of $6,126,761,315, so "the Secretary of Revenue will not calculate and publish new income tax rates, and there will be no rate reduction for tax year 2026" under SB 269.
Registering for payroll
(1) Withholding: register with the Kansas Department of Revenue using Form CR-16, Kansas Business Tax Application, or online at the Kansas Customer Service Center (ksrevenue.gov); file Form KW-5 withholding deposit reports on the assigned frequency and Form KW-3 annual withholding tax return with W-2s. (2) Unemployment insurance/SUTA: register with the Kansas Department of Labor (dol.ks.gov) for a UI account and file quarterly wage reports and contributions.
Annual filings
Form K-120S, Kansas Partnership or S Corporation Income Tax Return — for calendar-year filers, "your return must be filed no later than one month after the due date established under the federal internal revenue code, including any applicable extension" and "Payment of any liability shall be due April 15, 2026." Fiscal-year filers: the 15th day of the 4th month after year end. Because Kansas adds a month to the federal date, no separate Kansas extension form is needed to get past March 15. Mail to Kansas S Corporate Tax, KDOR, PO Box 750260, Topeka KS 66699-0260. Form K-40C composite return if filed (mark box L on the K-120S). Check Box N for the SALT Parity election; electing entities also make estimated payments. KANSAS SECRETARY OF STATE INFORMATION REPORT IS NOW BIENNIAL, not annual: "The Information Report is submitted every two years by any business on file with the Kansas Secretary of State," for-profit entities due by April 15 of their respective odd- or even-numbered year keyed to formation year (nonprofits June 15), with a three-month delinquency grace period before forfeiture. Payroll: KW-5 deposits, KW-3 annual, KDOL quarterly UI reports.
Pass-through entity tax
Yes — the Kansas SALT Parity Act. "For tax years commencing on or after January 1, 2022, an S corporation or partnership may annually elect to be subject to tax at the entity level for the taxable period." Mechanics: "The S corporation or partnership will make the election on the K-120S return for the tax year in which the election is being made. The K-120S has a new Box N which pass-through entities will check to make the election." It is elected annually (electing one year does not bind future years) BUT per KDOR "once the election is made, the election is irrevocable" — and "once the return is filed with the election checked, it cannot be undone by filing an amended return." Rate: "For tax years 2024 and beyond, an electing pass-through entity shall be subject to tax in an amount equal to the highest rate of tax for the applicable income tax year" — 5.58% for tax year 2025 and, per Notice 25-06, 5.58% for tax year 2026 as well. Only individual owners (and trusts filing a Kansas K-40 or K-41) can be covered; partnership and S corporation owners cannot. "An electing pass-through entity shall be treated as a C corporation for the purposes of making estimated tax payments," required for 2023 and later. No SALT-cap sunset in the Kansas statute.
The mistake owners make most often in Kansas
Filing your federal Form 2553
Businesses operating in Kansas send Form 2553 to the IRS Ogden service center — fax 855-214-7520. Full address and filing checklist for Kansas.
Frequently asked questions
Does Kansas require a separate S-corporation election?
No. Kansas does not require a separate state election. Kansas automatically recognizes the federal S election; there is no separate Kansas S election form. Per KDOR: "Corporations which elect under subchapter S of the Internal Revenue Code not to be taxed as a corporation must file a Kansas Small Business Corporation return" (Form…
What tax does an S corporation pay in Kansas?
None for an ordinary S corp — Kansas has no corporation franchise tax. The only entity-level tax is the OPTIONAL SALT Parity Act election (5.58% for 2026); banks/S&Ls pay privilege tax instead.
Where do I file Form 2553 from Kansas?
With the IRS Ogden service center. Fax 855-214-7520, or mail to Department of the Treasury, Internal Revenue Service, Ogden, UT 84201.
What is the most common S-corp mistake in Kansas?
Checking Box N on the K-120S without modeling it. The SALT Parity election is annual, but once you file a K-120S with Box N checked it is irrevocable for that year and "cannot be undone by filing an amended return." It applies a flat 5.58% entity-level tax to ALL covered income — including a resident owner's share that would otherwise have been taxed partly in the 5.20% bracket after deductions and exemptions — so for a modest single-owner S corp the election can easily cost more in Kansas tax than the federal SALT deduction is worth, especially now that the federal SALT cap sits at $40,000+ and many owners are no longer capped at all. It also triggers a C-corp-style estimated payment regime the owner did not previously have. Runner-up: assuming the K-120S is due March 15 like the federal 1120-S — it is due April 15, one month after the federal date.
Compare with other states: Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan.
Sources
File your Form 2553 correctly
Scorply completes your federal election and includes a Kansas guide in your packet, so you know exactly what else you owe here.
Start my Form 2553Researched from official Kansas sources and verified July 30, 2026. State tax rules change. This is general information, not tax advice — confirm with the state or a CPA before you rely on it.