Kansas State Tax Guide 2025
Moving to Kansas involves understanding the state's tax landscape. This guide provides an overview of Kansas taxes for 2025, focusing on income, property, and sales tax. Kansas generally offers a moderate tax environment compared to national averages, with a progressive income tax system and property taxes that fall near the U.S. median.
Income Tax
Kansas uses a progressive income tax system, meaning tax rates increase as income rises. This is not a flat tax. For 2025, the tax brackets remain the same as recent years, though the state has periodically adjusted rates and deductions. Taxpayers file using Kansas Form K-40.
Key Features of the Tax Structure:
- Tax Rates: The rates range from 3.1% to 5.7%.
- Standard Deduction: Kansas offers a standard deduction that varies by filing status (e.g., married filing jointly is higher than single).
- Personal Exemptions: Taxpayers can claim exemptions for themselves, their spouse, and dependents, which reduces taxable income.
2025 Tax Brackets (Estimated based on current law):
Note: While specific income thresholds may adjust slightly for inflation, the rate structure is expected to remain stable.
| Filing Status | Taxable Income Bracket | Tax Rate |
|---|---|---|
| Single | $0 – $15,000 | 3.10% |
| $15,001 – $30,000 | 5.25% | |
| Over $30,000 | 5.70% | |
| Married Filing Jointly | $0 – $30,000 | 3.10% |
| $30,001 – $60,000 | 5.25% | |
| Over $60,000 | 5.70% |
Note: Lower income brackets may be subject to a zero tax liability due to the non-refundable tax credit, effectively raising the income threshold for taxation.
Sales Tax
Kansas has a state-level sales tax rate of 6.5%. This is a key revenue source for the state and local governments.
How It Works:
- Combined Rate: The total sales tax you pay is the sum of the state rate (6.5%) plus local city and county rates. These local rates can vary significantly.
- Typical Range: In most areas, the combined sales tax rate ranges from 6.5% to 11.5%. Major metropolitan areas like Wichita, Overland Park, and Kansas City often have higher local additions.
- Groceries: Kansas taxes groceries at a reduced state rate (historically 4%, though this is subject to legislative changes). Local taxes still apply to the total purchase.
- Services: Most services are exempt from sales tax, but specific services (like utilities and some repairs) are taxable.
Property Tax
Property taxes in Kansas are primarily levied by local governments (counties, school districts, cities, and special districts) to fund public services. The state does not have a statewide property tax; instead, it sets the framework for assessment and collection.
Overview:
- Assessment Ratio: Real property is assessed at a percentage of its appraised market value. For residential real estate, the assessment rate is typically 11.5% of the appraised value.
- Effective Tax Rate: While Kansas property tax rates vary by location, they generally align with or slightly exceed the national median. The effective tax rate (total tax paid as a percentage of home value) typically ranges from 1.2% to 2.0%, depending on the local levy.
- Exemptions: Kansas offers property tax relief programs, such as the "Homestead Property Tax Refund" for low-income seniors and disabled persons, and a "Senior Citizen Property Tax Deferral" program. New residents should check with their county appraiser for eligibility.
Other Taxes
Beyond income and sales, Kansas imposes several other taxes that new residents should be aware of:
- Gas Tax: Kansas has a relatively low motor fuel tax. As of 2025, the tax is approximately 24 to 25 cents per gallon (subject to annual adjustment for inflation). This funds state highway maintenance.
- Sin Taxes: Kansas taxes "sin" items like tobacco and alcohol at specific rates.
- Cigarettes: The excise tax is roughly $1.29 per pack.
- Alcohol: Taxes vary by type (beer, wine, spirits) and are often included in the retail price.
- Inheritance Tax: Kansas is one of the few remaining states with an inheritance tax. However, it is not levied on direct descendants (children, grandchildren, parents). It generally applies to transfers to siblings, nieces, nephews, and unrelated individuals. The tax rate is progressive, ranging from 5% to 15%, depending on the relationship to the deceased and the value of the inheritance.
Retiree Taxes
Kansas offers a favorable tax environment for retirees regarding retirement income.
Taxability of Retirement Income:
- Social Security: Social Security benefits are fully exempt from Kansas state income tax for taxpayers with federal adjusted gross income (AGI) below certain thresholds. For higher-income retirees, a portion may be taxable.
- Pensions and 401(k)s: Kansas does not tax income from government pensions (including military) and most private pensions up to a certain limit. The state offers a pension exemption of up to $20,000 for taxpayers aged 65 and older (or disabled). This exemption applies to income from qualified retirement plans, including IRAs and 401(k)s.
- Property Tax Relief: As mentioned, seniors may qualify for property tax deferrals or refunds if they meet income and age requirements.
Comparison to Neighboring States
Kansas sits in the middle of the tax spectrum compared to its neighbors:
- Missouri: Kansas has a lower income tax rate structure than Missouri (which has a top marginal rate of 5.4% but a different bracket structure). However, sales tax rates are generally comparable.
- Nebraska: Kansas income tax rates are lower than Nebraska's (which tops out at 6.84%). Nebraska has a higher property tax burden on average.
- Oklahoma: Kansas and Oklahoma have similar income tax rates (Oklahoma's top rate is 4.75% as of 2025). Oklahoma has a higher sales tax rate (4.5% state plus local).
- Colorado: Colorado has a flat income tax rate of 4.4%, which is between Kansas's lower and middle brackets. Kansas generally has a higher sales tax burden than Colorado.
Disclaimer: Tax laws change frequently. The information provided in this guide is for general informational purposes only and does not constitute professional tax advice. Consult a Certified Public Accountant (CPA) or tax attorney for advice specific to your financial situation.