Tool | November 2017

State-by-State Guide to Taxes on Retirees

Kansas

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The Bottom Line
Map of Kansas

Least Tax Friendly

Faced with a ballooning budget deficit, lawmakers in Kansas boosted taxes this year, making the state even less friendly for retirees. Distributions from individual retirement accounts, 401(k) plans and out-of-state pensions are fully taxed. Kansas excludes Social Security benefits from state income taxes for residents with a federal adjusted gross income of $75,000 or less, but those with a higher AGI will pay taxes on those benefits, too. It's one of Kiplinger's least-friendly states for retirees.

State Sales Tax

6.5% state levy. Localities can add as much as 4%, and the average combined rate is 8.62%, 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: 2.9% (on $15,000 or less of taxable income for single filers and $30,000 or less for joint filers)

High: 5.2 (on more than $30,000 of taxable income for single filers and more than $60,000 for joint filers)

For the 2018 tax year, the low rate will rise to 3.1%, and the high rate to 5.7%.

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.