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Tool | August 2013

State-by-State Guide to Taxes on Retirees

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Kansas

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The Bottom Line
Map of Kansas

TAX-FRIENDLY

The Sunflower State excludes Social Security benefits from state income taxes for residents with a federal adjusted gross income of $75,000 or less. Military, civil-service and in-state public pensions are exempt from state income taxes, but out-of-state pensions are fully taxed. The state sales tax was scheduled to drop to 5.7% on July 1, 2013, but the state instead dropped the rate to 6.15%. The state has a five-year plan to reduce its income tax rates: As of 2013, Kansas reduced its three income tax brackets to two and reduced the rates of the brackets, dropping the top income tax bracket from 6.45% to 4.9% and the low bracket from 3.5% to 3.0%. Taxable property is assessed at its fair market value, and property tax refunds are available to low-income seniors.

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: 3.0% (on less than $15,000 of taxable income for single filers and less than $30,000 for joint filers)

High: 4.9% (on more than $15,000 of taxable income for single filers and more than $30,000 for joint filers)

Note: For 2014, the low rate will be 2.7%, and the high rate will be 4.8%. (The state has a five-year plan to drop the low rate to 2.3% and the high rate to 3.9%.)

Social Security

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 fully exempt. Military, civil-service and Kansas state and local government pensions are exempt. Out-of-state government pensions are fully taxed.

Property Taxes

Taxable property is assessed at its 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 $32,400 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 $18,200 or less. The refund is 75% of the property taxes paid. Those who claim this refund cannot claim a Homestead refund.

Inheritance and
Estate Taxes

There is no estate tax or inheritance tax.

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