Kansas Use Tax Calculator (For Tax Year 2018)

A specialized tool to calculate Kansas compensating use tax due for 2018 on items purchased out-of-state and brought into Kansas for use, storage, or consumption.

What is the Kansas Use Tax for 2018?

The Kansas Compensating Use Tax is a tax imposed on tangible personal property purchased from out-of-state retailers for use, storage, or consumption within Kansas. If the out-of-state seller did not collect Kansas sales tax at a rate at least as high as Kansas’s combined rate, the purchaser is responsible for paying the difference to the Kansas Department of Revenue. For the tax year 2018, the state use tax rate was 6.50%. This tax, often just called “use tax,” ensures that Kansas businesses are not at a competitive disadvantage to out-of-state sellers who don’t collect Kansas sales tax. It also guarantees fairness for Kansans who buy goods locally and pay the required sales tax. The need to calculate Kansas use tax due 2018 applies to purchases made via the internet, mail-order catalogs, or directly from another state if the item is brought back to Kansas.

Kansas Use Tax Formula and Explanation for 2018

To accurately calculate Kansas use tax due 2018, you need to understand the components of the calculation. The formula is designed to calculate the tax owed after giving credit for taxes already paid.

Formula:

Use Tax Due = (Purchase Price × Combined Kansas Tax Rate) - Sales Tax Already Paid

The Combined Kansas Tax Rate is the sum of the 2018 state rate and your applicable local rate.

Combined Kansas Tax Rate = 6.50% (State Rate) + Local Rate (%)

Variable Explanations

Variable	Meaning	Unit	Typical Range
Purchase Price	The total cost of the item, including shipping, handling, and delivery charges.	US Dollars ($)	$1 – $100,000+
Combined Kansas Tax Rate	The sum of the 6.50% state rate and any city/county tax rates.	Percentage (%)	6.50% – 10.6%
Sales Tax Already Paid	The amount of sales tax you paid to a seller in another state.	US Dollars ($)	$0 or more

Practical Examples

Example 1: Purchase with No Sales Tax Paid

Imagine in 2018 you bought a new computer online for $2,000. The seller was from a state with no sales tax and did not collect any tax on the purchase. You live in a part of Kansas with a 2.1% local tax rate.

• Inputs:
  • Purchase Price: $2,000
  • Sales Tax Already Paid: $0
  • Local Tax Rate: 2.1%
• Calculation:
  • Total Tax Rate = 6.50% + 2.1% = 8.6%
  • Total Tax Liability = $2,000 × 0.086 = $172.00
  • Use Tax Due = $172.00 – $0 = $172.00
• Result: You would need to remit $172.00 in use tax to the Kansas Department of Revenue.

Example 2: Purchase with Lower Sales Tax Paid

You purchased furniture in Missouri in 2018 for $5,000. You paid Missouri’s 4.225% sales tax at the time of purchase, which amounted to $211.25. Your local tax rate in Kansas is 1.5%.

• Inputs:
  • Purchase Price: $5,000
  • Sales Tax Already Paid: $211.25
  • Local Tax Rate: 1.5%
• Calculation:
  • Total Kansas Tax Rate = 6.50% + 1.5% = 8.0%
  • Total Kansas Tax Liability = $5,000 × 0.080 = $400.00
  • Use Tax Due = $400.00 – $211.25 = $188.75
• Result: You would owe the state of Kansas $188.75, which is the difference between what you should have paid in Kansas and what you actually paid in Missouri.

How to Use This Kansas Use Tax Calculator

Using this calculator is a straightforward process to find out your 2018 use tax obligation. Follow these steps:

1. Enter Purchase Price: In the first field, input the total pre-tax cost of your item(s), including any shipping fees.
2. Enter Tax Already Paid: If you paid sales tax to the out-of-state seller, enter that dollar amount here. If you paid no tax, enter ‘0’.
3. Enter Local Tax Rate: Input your local sales tax rate as a percentage. This rate is specific to your city and/or county. If you don’t know it, you can check the Kansas Department of Revenue’s rate locator. The calculator automatically adds the 6.50% state rate.
4. Review Your Results: The calculator will instantly show your “Net Kansas Use Tax Due”. It also provides a breakdown of the total tax liability in Kansas and the credit you receive for taxes already paid.

Key Factors That Affect Your 2018 Kansas Use Tax

Several factors can influence the amount you need to calculate for your Kansas use tax due 2018. Understanding these is crucial for accurate reporting.

• Purchase Location: Purchases from states with no sales tax (like Oregon or Montana) will always result in the full Kansas use tax being due.
• Shipping and Handling Costs: Kansas use tax applies to the total cost of goods, which explicitly includes charges for shipping, postage, and handling. Always include these in your purchase price.
• Your Local Tax Rate: The combined sales tax rate varies across Kansas, from 6.50% to over 10%. Using the correct local rate for where the item is used is critical for an accurate calculation.
• Type of Property: Use tax applies to “tangible personal property.” Generally, services are not subject to use tax.
• Credit for Taxes Paid: The system is designed to prevent double taxation. You always get a credit, up to the amount of the Kansas liability, for taxes lawfully paid in another state.
• Date of Purchase: This calculator is specifically for the 2018 tax year, which used a 6.50% state rate. Rates can and do change in other years.

Frequently Asked Questions (FAQ)

1. What was the Kansas state use tax rate in 2018?

The state-level compensating use tax rate for Kansas in 2018 was 6.50%, the same as the state sales tax rate.

2. Do I have to pay use tax on everything I buy online?

You owe use tax if the online seller did not collect a combined sales tax rate equal to or greater than your Kansas rate. Many large online retailers now collect Kansas sales tax, but for those that don’t, you are responsible for remitting the use tax. To find out more, read our guide on Kansas use tax rules.

3. What if I paid more sales tax in another state than I would have in Kansas?

If the tax rate you paid in another state was higher than your combined Kansas rate, you do not owe any use tax to Kansas. However, you do not get a refund from Kansas for the overpayment.

4. How do I pay the use tax I calculate?

Individual consumers typically report and pay use tax on their Kansas individual income tax return (Form K-40). For more information, see our page on how to pay Kansas use tax.

5. Does use tax apply to items bought on vacation?

Yes. If you buy an item in another state and bring it back to Kansas for personal use, it is subject to use tax. For example, a souvenir bought in a tax-free state would be subject to use tax.

6. Is freight or shipping taxable?

Yes, in Kansas, the use tax is calculated on the total purchase price, which includes any shipping, handling, or transportation charges billed by the seller.

7. What’s the difference between sales tax and use tax?

Sales tax is collected by the retailer at the point of sale. Use tax is paid directly by the consumer when sales tax wasn’t collected (or was under-collected) by an out-of-state seller. They are two sides of the same coin, designed to tax consumption within the state. For more on this, check with the Kansas Department of Revenue contact page.

8. What happens if I don’t pay use tax?

Failure to pay use tax can result in the assessment of the tax due, plus penalties and interest, by the Kansas Department of Revenue during an audit.