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KS January exceeds collection expectations

(MSC News)--Kansas closed January 2026 with total tax collections exceeding state estimates, according to a release issued Monday from the Kansas Governor’s Office.

The state reported $988.2 million in total tax collections for the month, which was $12.2 million, or 1.2%, above projections. Collections were also 4.8% higher than in January 2025, reflecting continued growth in several major tax categories.

State officials said individual income tax collections totaled $542.3 million, coming in $7.3 million, or 1.4%, above estimates. Individual income tax revenue increased 8.4% compared to the same month last year.

Corporate income tax collections showed stronger-than-expected performance, totaling $86.2 million. That figure exceeded estimates by $16.2 million, or 23.2%, and represented an 18.1% increase from January 2025.

Combined retail sales and compensating use tax receipts totaled $337.8 million for the month. Those collections were $12.2 million, or 3.5%, below estimates and declined 3.2% from January 2025.

In the release, Governor Laura Kelly emphasized the importance of addressing long-term budget stability, noting that recent spending patterns have outpaced revenue growth. The Governor stated that her final budget proposal is intended to correct that imbalance over time and place the state on a more sustainable fiscal path.

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