Tool | September 2014
State-by-State Guide to Taxes on Retirees
State Sales Tax
Effective July 1, 2013, the sales tax rate decreased from 6.3% to 6.15% (prescription drugs are exempt). Cities and counties may add another 4%.
Income Tax Range
Low: 2.7% (on less than $15,000 of taxable income for single filers and less than $30,000 for joint filers)
High: 4.8% (on more than $15,000 of taxable income for single filers and more than $30,000 for joint filers)
Note: For 2015, the low rate will be 2.7%, and the high rate will be 4.6%. (The state has a five-year plan to drop the low rate to 2.3% and the high rate to 3.9%.)
Social Security benefits are exempt from Kansas income tax for residents with a federal adjusted gross income of $75,000 or less.
Exemptions for Other Retirement Income
Railroad Retirement benefits are exempt. Military, civil-service, and Kansas state and local government pensions are exempt. Out-of-state government pensions are fully taxed.
Taxable property is assessed at 100% of fair market value.
Median property tax on the state's median home value of $125,500 is $1,625, according to the Tax Foundation.
Tax breaks for seniors: Homeowners 55 and older who earn $32,900 or less are eligible for a refund of up to $700 under the Homestead Property Tax Refund Act (note: 50% of Social Security benefits can be excluded from income for the purposes of qualifying for this program).
A Safe Senior property tax refund is available for homeowners 65 or older with household income of $18,600 or less. The refund is 75% of the property taxes paid. The appraised value of the home cannot exceed $350,000 in order to receive this refund. Those who claim this refund cannot claim a Homestead refund.
There is no estate tax or inheritance tax.
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