Kansas Tax Guide

Kansas state tax: Overview

Kansas can be a moderately tax-friendly state for certain retirees, particularly those with a public pension income.

Residents of the Sunflower State are fully exempt from taxes on their public pension. Not to mention: Kansans' tax savings recently got even better thanks to a recent landmark tax relief package.

As reported by Kiplinger, Gov. Laura Kelley signed a measure that eliminated Kansas's tax on Social Security income, reduced property and income taxes, and is set to increase the state standard deduction and child and dependent care credit. The legislation is projected to usher in nearly $2 billion in tax cuts for Kansans over the next 5 years.

On the downside, Kansas has a relatively high sales tax. The state is the ninth most expensive in the nation when considering average combined state and local sales taxes.

However, some taxpayers might consider Kansas income tax rates a positive, depending on how much they earn and where those earnings come from.

[Data for this state tax guide was gathered from a number of sources including the Census Bureau, the state’s government website, and the Sales Tax Handbook. Property taxes are cited as a rate percentage rather than the assessed value.]

Kansas income tax

Kansas has a graduated state individual income tax rate ranging from 3.10% to 5.70%.

Kansas Republican lawmakers recently enacted a flat income tax plan over the veto of Democratic Gov. Laura Kelly. Senate Bill 269 would reduce income taxes to a single rate of 4%, according to local reports.

Kansas retirement taxes

Kansas income taxes in retirement: Kansas is no longer one of the states that taxes Social Security retirement benefits.

Income from federal government-designated Kansas state and local government, as well as military retirement plans, is tax-exempt.

Railroad benefits are also exempt.

Social Security: Partially taxable (Exempt for retires with an AGI of $75,000 or less)
Pensions: Taxable (Public pensions are exempt)
401(k) and IRA Distributions: Taxable

Kansas sales tax

The statewide levy is 6.5%. Localities can add as much as 5%, and the average combined rate is 8.77%, according to Tax Foundation data.

Kansas repealed its grocery sales tax last year, but a local sales tax will still apply.)

The elimination of the state sales tax on groceries is expected to save shoppers $13 million per month, according to the governor's office.

Clothing: Taxable
Prescription drugs: Taxable
Clothing: Taxable

How much are property taxes in Kansas?

The average effective property tax rate in Kansas is 1.26%. However, Kansas offers programs that can help some homeowners reduce their property taxes.

Kansas Property Tax Breaks for Retirees

SAFESR: Some homeowners may be eligible for the ‘Kansas Property Tax Relief for Low Income Seniors’ or SAFESR. The program offers a property tax refund program equal to 75% of the property taxes paid. Kansas requires that taxpayers meet specific criteria to qualify.

Additionally, taxpayers can claim either the Homestead or SAFESR refund, not both.