Bottom Line
Middle-Class Families: Least Tax-Friendly (Go to the Kiplinger Tax Map for Middle-Class Families)
Retirees: Least Tax-Friendly (Go to the Kiplinger Tax Map for Retirees)
Most people don't think of the farm belt as a high-tax area, but that's the case with a few states in the area — such as Kansas. Sales tax is the main culprit behind the Sunflower State's poor (from a taxpayer standpoint) showing. According to the Tax Foundation, it has the ninth-highest combined sales tax rate in the country.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The news doesn't get much better when it comes to income taxes, which are typically above average for most residents. Plus, hundreds of local governments in Kansas also impose a tax on interest, dividends, and other earnings from intangible property.
Property taxes and fuel taxes are above the national average as well.
Kansas Income Taxes
Kansas 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.
Kansas 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.
Kansas 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.
Kansas Sales Tax
6.5% state levy. Localities can add as much as 4.25%, and the average combined rate is 8.71%, 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.
Kansas Real Property Taxes
In Kansas, the median property tax rate is $1,330 per $100,000 of assessed home value.
Kansas Property Tax Breaks for Retirees
Kansas offers three programs to reduce the property tax burden on seniors (claiming one may prevent you from claiming another). First, for claims in 2023, homeowners 55 and older who earn $37,750 or less in 2022 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 $22,000 or less in 2022. The refund is 75% of the property taxes paid. The appraised value of the home cannot exceed $350,000.
Kansas Motor Fuel Taxes
Gasoline: 24.03¢ per gallon (varies by county).
Diesel: 26.03¢ per gallon (varies by county).
Kansas Sin Taxes
Cigarettes: $1.29
All other tobacco products: 10% of the wholesale price
Vapor products: $0.05 per ml
Beer: $0.18 per gallon
Wine: $0.30 per gallon, $0.75 per gallon if above 14% alcohol by volume (above 16% alcohol by volume beginning in 2023)
Liquor: $2.50 per gallon
In lieu of state sales tax, an 8% "liquor enforcement tax" is charged on off-premises sales of alcoholic beverages.
Kansas Estate and Inheritance Taxes
No estate or inheritance tax.
-
-
Can the Earned Income Tax Credit Help You? (Or Someone You Know)?
The IRS and community partners want to improve earned income tax credit awareness.
-
Financial Wellness Is Self-Care: 3 Steps to Help Improve Yours
Many people resolve in the new year to get healthier. Taking charge of your financial wellness can help improve your physical health by lowering your anxiety about money issues.
-
Can the Earned Income Tax Credit Help You? (Or Someone You Know)?
The IRS and community partners want to improve earned income tax credit awareness.
-
Tax Season is Here. What to Know Before You File
The IRS is accepting tax returns for the 2023 tax season, but there are some key things to know before you file.
-
When Can You File Taxes in 2023?
tax filing If you're an early bird when it comes to filing your tax return, there's good news from the IRS.
-
New EV Tax Credit Gets Complicated for 2023
More car models qualify for the full federal electric vehicle tax credit for a little while, but then what?
-
When Are Taxes Due in 2023? Tax Deadlines by Month
tax deadline Know the tax deadlines that apply to you, so you don't get hit with IRS penalties or miss out on a valuable tax break.
-
State "Stimulus Checks" in 2023 – Which States Are Still Sending Payments
Residents in a handful of states could still receive a tax rebate check or other payment in 2023.
-
What's the Gift Tax Exclusion for 2023?
Plan on giving cash or property to family or friends? Keeping it below the annual gift tax exemption can help you save both time and money.
-
Top Tax Stories of 2022 (That Still Matter for 2023)
Kiplinger highlights some of its top tax stories of 2022 about topics that can still impact your finances in 2023.
