State-by-State Guide to Taxes on Retirees
Tool | December 2021

Kansas State Tax Guide for Retirees

State tax rates and rules for income, sales, property, estate, and other taxes that impact retirees.


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The Bottom Line
Flag of Kansas

Least Tax-Friendly

While there's no place like home, maybe Dorothy should think about returning to Oz when she retires to avoid Kansas' high taxes. Distributions from private retirement plans (including IRAs and 401(k) plans) and out-of-state public pensions are fully taxed. Kansas also taxes Social Security benefits received by residents with a federal adjusted gross income of $75,000 or more. Military, federal government and in-state public pensions are exempt from state income taxes, though.

Shopping in Kansas can be expensive, too. The Sunflower State's average combined state and local sales tax rate is the ninth-highest in the U.S. at 8.7%.

Property taxes are above the national average as well, though some breaks are available for seniors.

Income Tax Range

Low: 3.1% (on taxable income from $2,501 to $15,000 for single filers and from $5,001 to $30,000 for joint filers)

High: 5.7% (on more than $30,000 of taxable income for single filers and more than $60,000 for joint filers).

Kansas also has an "intangibles tax" levied on unearned income by some localities.

Taxation of Social Security Benefits

Social Security benefits are exempt from Kansas income tax for residents with a federal adjusted gross income of $75,000 or less. For taxpayers with a federal AGI above $75,000, Social Security benefits are taxed by Kansas to the same extent they are taxed at the federal level.

Tax Breaks for Other Retirement Income

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

Railroad Retirement benefits are also exempt.

Sales Tax

6.5% state levy. Localities can add as much as 4%, and the average combined rate is 8.7%, according to the Tax Foundation.

Groceries: Taxable
Clothing: Taxable
Motor Vehicles: Taxable
Prescription Drugs: Exempt

NOTE: The state sales tax on groceries is reduced to 4% in 2023, 2% in 2024, and 0% in 2025 and thereafter. Local taxes on groceries will still apply.

Real Property Taxes

Kansas offers three programs to reduce the property tax burden on seniors (claiming one may prevent you from claiming another). First, for claims in 2022, homeowners 55 and older who earn $36,600 or less in 2021 are eligible for a refund of up to $700 under the Homestead Property Tax Refund Act (50% of Social Security benefits can be excluded from income for the purposes of qualifying for this program).

Second, beginning in 2022, a separate refund is available for homeowners 65 and older with a household income of $50,000 or less (adjusted annually for inflation). The appraised value of the home cannot exceed $350,000. The refund is equal to the amount that the homeowner's current property tax exceeds the property tax in his or her "base year" (i.e., the year in which the homeowner becomes eligible for a refund or 2021, whichever is later).

Third, the Safe Senior tax credit is available for homeowners 65 or older with household income of $20,900 or less in 2021. The refund is 75% of the property taxes paid. The appraised value of the home cannot exceed $350,000.

Annual Car Taxes and Fees

An annual vehicle property tax based on the car's value is imposed.

Estate and Inheritance Taxes

No estate or inheritance tax.