Tool | October 2016

State-by-State Guide to Taxes on Retirees

Our comprehensive guide to taxes on retirement income, property and purchases, as well as special tax breaks for seniors, in every state.

Kansas

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The Bottom Line
Map of Kansas

Mixed Tax Picture

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. Starting in 2013, the state began implementing a five-year plan to reduce its income tax rates: The income brackets were reduced to two, and the low rate will eventually drop to 2.3% by 2017 and the high rate to 3.9% by 2018. Property tax refunds are available to low-income seniors.

State Sales Tax

6.5% state levy. Localities can add as much as 4%, and the average combined rate is 8.6%, according to the Tax Foundation. These rates apply to groceries as well. A food sales tax credit of $125 per person is available to seniors and those claiming dependents; to qualify for the credit, federal adjusted gross income may not exceed $30,615.

Income Tax Range

Low: 2.4% (on $15,000 or less of taxable income for single filers and $30,000 or less for joint filers)

High: 4.6% (on more than $15,000 of taxable income for single filers and more than $30,000 for joint filers)

Kansas is following a schedule of lowering rates. For the 2017 tax year, the low rate will drop to 2.3%, and in the 2018 tax year, the top rate will drop 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 exempt. Military, civil-service, and Kansas state and local government pensions are exempt. Out-of-state government pensions are fully taxed.

IRAs

Taxable at ordinary income tax rates.

401(k)s and Other Defined-Contribution Employer Retirement Plans

Taxable at ordinary income tax rates.

Private Pensions

Taxable at ordinary income tax rates.

Public Pensions

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.

Property Taxes

The median property tax on Kansas' median home value of $132,100 is $1,840.

Tax breaks for seniors: Homeowners 55 and older who earn $33,400 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 $18,900 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.

Inheritance and Estate Taxes

There is no estate tax or inheritance tax.