How to make the Kansas PTET election.

Can your business elect?

S corporations and partnerships, including LLCs taxed as either. Both elect on Form K-120S.

The election binds all electing pass-through entity owners. Only individuals and trusts that file a Kansas K-40 or K-41 are covered owners; C corporation partners are excluded, and partnerships and S corporations that are owners are not covered owners (each can make its own election for its individual owners). For resident owners, the entity chooses either all income (Kansas and non-Kansas) or Kansas-source income only, and must use the same method for all residents.

Rate: 5.58%, the highest Kansas individual income tax rate under K.S.A. 79-32,110(a) for 2026. Notice 25-06 says the contingent rate reduction under 2025 Senate Bill 269 did not take effect for 2026.

Nonresident owners' distributive shares of Kansas-source income, plus resident owners' shares computed either as all income (Kansas and non-Kansas sources) or as Kansas-source income only, at the entity's choice.

Available for 2026. The SALT Parity Act (K.S.A. 79-32,284 through 79-32,289, enacted by 2022 House Bill 2239 and amended by 2024 Senate Bill 410) applies to tax years beginning on or after January 1, 2022 and has no sunset. New to PTET? See how the election works.

Deadlines

These dates are for a calendar-year business. Pay at least two business days early, since state payment sites slow down on deadline days.

Electing, step by step

Deadline: The election is made on the 2026 Form K-120S as filed. The return is due April 15, 2027 for a calendar-year entity (one month after the federal due date), or October 15, 2027 with a federal extension. It cannot be made or changed on an amended return.

Start with 2025 Form K-120S, Kansas Partnership or S Corporation Income, from the Kansas Department of Revenue.

1. Prepare the 2026 Form K-120S, Kansas Partnership or S Corporation Income return.
2. In the box section on page 1, mark Box N, 'Mark this box if electing to be subject to tax at the entity level.'
3. To also tax 100% of Kansas residents' income at the entity level, mark Box O instead, 'Mark this box if electing to be taxed at the entity level and wishing to tax 100% of the income for Kansas residents.'
4. Complete Part III, the distribution of income for partners or shareholders taxed on the K-120S, and report the entity tax on line 32.
5. File the original return by its due date (including a federal extension). The election cannot be made or changed on an amended return, and it is made each year.

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Paying the tax, step by step

An electing entity is treated as a corporation for estimated tax. Payments on Form K-120ES are required when liability is expected to exceed $500, due on the 15th day of the 4th, 6th, 9th, and 12th months: April 15, June 15, September 15, and December 15, 2026 for a calendar-year entity. The underpayment penalty is computed on Schedule K-220S.

What you need

• Nothing to set up. Kansas Department of Revenue Tax Payment Portal takes payments without an account.
• The entity's federal Employer Identification Number (EIN).
• The 2026 installment amount (liability expected over $500 requires estimates).
• The business bank account routing and account numbers, or a credit card.

Start at Kansas Department of Revenue Tax Payment Portal, Kansas's official site.

1. Go to the Tax Payment Portal at kansas.gov/payment-portal and select Get Started, or log in to the KDOR Customer Service Center at ksrevenue.gov.
2. For Entity Type, select Business, then select the tax type for the corporate (K-120S) account.
3. For Payment Type, select Estimated Payment for a 2026 installment, Extension Payment for an extension payment, or Normal Payment for the balance due.
4. Enter the payment details and amount, accept the statement that the transaction is for payment only, and pay by ACH debit or credit card.
5. To pay by mail, send Form K-120ES with a check payable to Kansas Corporate Estimated Tax (EIN on the check) to Corporate Estimated Tax, Kansas Department of Revenue, PO Box 3506, Topeka, KS 66625-3506.

Filing the return: Form K-120S (Kansas Partnership or S Corporation Income return), with the entity tax reported on line 32. For calendar-year 2026, payment is due April 15, 2027; a federal extension (copy of Form 7004 enclosed) extends filing six months, and no penalty applies if 90% of the tax is paid by the original due date.

Claiming the credit

Owners receive a credit equal to their direct share of the entity tax, reported to them on Form K-9 (Statement of Partnership or S Corporation Tax Paid). Individuals attach Form K-9 to Form K-40 (fiduciaries to K-41) and claim the credit for tax paid on the K-120S; any excess after other credits is refunded.

Good to know

• A nonresident individual or fiduciary whose only Kansas income comes from an electing entity is not required to file a Kansas return.
• Kansas credits from the entity's activities pass through to and are claimed by the owners on their own returns, not on the K-120S (a 2024 change under Senate Bill 410).
• State income tax deducted federally by the entity must be added back on Form K-120S.
• Income tax paid to another state by an electing entity on income included in a resident's Kansas income counts as tax paid by the resident for the credit for taxes paid to other states.
• Owners' basis is computed as if the election had not been made.
• Paying your personal Kansas estimates? See how to pay Kansas estimated taxes.
• Business in more than one state? Each state has a guide of its own.

Official sources

Checked October 2026 against the Kansas Department of Revenue's own publications and K.S.A. 79-32,284 through 79-32,289.

• K.S.A. 79-32,287 (tax rate and base), Kansas Statutes 2025-2026
• K.S.A. 79-32,288 (owner credit, refundable)
• Kansas Department of Revenue, SALT Parity Act FAQ
• 2026 Form K-120ES, Corporate Estimated Tax voucher and instructions
• KDOR Notice 25-06, no income tax rate reduction for tax year 2026
• 2025 Partnership or S Corporation Income Tax instruction booklet (K-120S, K-9)
• 2025 Form K-120S (Boxes N and O)
• Kansas Tax Payment Portal
• Kansas Tax Payment Portal, payment information page (entity, tax, and payment types)

This guide is for general education and reflects rules as of October 2026. Tax law and agency websites change, and your situation may have details that change the answer. Please talk with your tax professional before acting on it.