Kansas has a state income tax, and the rate depends on your income level

Kansas charges state income tax on wages, salaries, and other earned income. The state uses a progressive tax system, meaning the tax rate increases as your income rises. For the 2024 tax year, Kansas has three tax brackets: 5.7 percent, 6.45 percent, and 6.85 percent. Your income level determines which bracket applies to you.

The state also taxes capital gains, dividends, and business income. If you work in Kansas or live there, you will owe state income tax on money you earn, regardless of where the work happens. If you live in Kansas but work in another state, you may owe tax to both states, though Kansas offers a credit to prevent double taxation on the same income.

Key Takeaways

  • Kansas has three income tax brackets ranging from 5.7 percent to 6.85 percent, depending on how much you earn.
  • The state taxes wages, self-employment income, capital gains, and dividends.
  • If you live in Kansas, you owe state income tax on all income earned, whether you work in-state or out-of-state.
  • Kansas allows a tax credit if you pay income tax to another state on the same earnings, so you do not pay twice on one dollar.

How Kansas income tax brackets work

Kansas uses three tax brackets for single filers and married filers filing jointly. The brackets change each year based on inflation. For 2024, a single filer pays 5.7 percent on income up to a certain threshold, 6.45 percent on income above that, and 6.85 percent on the highest portion of income. The exact dollar amounts where each bracket begins shift annually.

The progressive system means you do not pay the top rate on all your income — only on the portion that falls into the highest bracket. For example, if you earn $60,000 as a single filer, the first portion of that income is taxed at 5.7 percent, the next portion at 6.45 percent, and only the amount above the second threshold at 6.85 percent. Your employer or tax software will calculate which bracket applies to your specific income.

What types of income Kansas taxes

Kansas taxes most forms of income. Wages and salaries from employment are taxed. If you are self-employed, your business income is taxed. Interest earned from savings accounts and bonds is taxed. Dividends from stocks are taxed. Capital gains — the profit you make when you sell an asset for more than you paid for it — are also taxed.

Some income is exempt. Social Security benefits are not taxed by Kansas. Certain retirement distributions may be exempt under specific conditions. Military pay for active-duty service members is not taxed. If you receive income from sources outside Kansas, you may still owe Kansas tax on it if you are a resident, though you can claim a credit for taxes paid to other states.

Filing requirements and important date

Kansas follows the federal tax calendar. Your state income tax return is due on the same day as your federal return, which is typically April 15. If you file for an extension with the IRS, the extension applies to your Kansas return as well. You file using Form K-40, the Kansas individual income tax return, along with any required schedules.

You must file a Kansas return if your income exceeds the filing threshold set by the state. The threshold varies by filing status and age. Most working adults will need to file. If your employer withheld Kansas income tax from your paychecks, you should file to report your income and claim any refund you are owed. You can file by mail or electronically through the Kansas Department of Revenue website.

How withholding works on your paycheck

Your employer deducts Kansas state income tax from each paycheck based on the information you provide on Form W-4. The amount withheld depends on your income level, filing status, and the number of dependents you claim. If you withhold too much, you will receive a refund when you file your return. If you withhold too little, you will owe money.

You can adjust your withholding at any time by submitting a new W-4 to your employer. If you have a major life change — marriage, divorce, a second job, or a significant income increase — you may want to review your withholding to avoid a large bill or overpayment at tax time. Self-employed people do not have withholding and instead make quarterly estimated tax payments directly to Kansas.

Kansas tax credits and deductions

Kansas offers several tax credits that can reduce the amount of tax you owe. The Earned Income Tax Credit (EITC) is available to low- and moderate-income workers. Kansas also offers a child and dependent care credit, a property tax credit for homeowners and renters, and credits for education expenses. Some credits are refundable, meaning you can receive money back even if you owe no tax.

You can also deduct certain expenses. The standard deduction — a flat amount you can deduct without itemizing — is available to all filers. If your itemized deductions exceed the standard deduction, you can choose to itemize instead. Charitable contributions, mortgage interest, and state and local taxes paid are common itemized deductions. Your tax software or a tax professional can help you determine which approach saves you more money.

Comparing Kansas to neighboring states

Kansas has a moderate state income tax rate compared to its neighbors. Missouri has a top rate of 5.3 percent, making it slightly lower than Kansas. Oklahoma's top rate is 5.85 percent, also close to Kansas. Colorado has a flat rate of 4.4 percent, which is lower. Nebraska's top rate is 6.84 percent, nearly identical to Kansas.

If you live near a state border and work across it, the state where you work typically has the right to tax your income first. Kansas allows a credit for taxes paid to other states, so you will not pay the full rate to both. The difference between state rates is usually small enough that it should not be the only factor in a major decision like relocating, but it is worth understanding if you are comparing your overall tax burden.

Frequently Asked Questions

Do I have to pay Kansas state income tax if I work remotely for an out-of-state company?

Yes, if you live in Kansas, you owe Kansas state income tax on all income you earn, regardless of where your employer is located. The state taxes residents on their worldwide income. You may also owe tax to the state where your employer is based, but Kansas allows a credit for taxes paid to other states to prevent double taxation on the same earnings.

What is the difference between the standard deduction and itemized deductions?

The standard deduction is a fixed dollar amount you can subtract from your income without listing specific expenses. Itemized deductions let you deduct actual expenses like mortgage interest, property taxes, and charitable donations. You choose whichever method gives you the larger deduction. Most people use the standard deduction because it is simpler and often larger.

Can I get a refund if Kansas withheld too much tax from my paycheck?

Yes. When you file your Kansas tax return, the state compares the total tax you owe to the total amount withheld. If you withheld more than you owed, you receive a refund. You can claim the refund on your return or request it be applied to next year's taxes. The refund process typically takes several weeks after the state processes your return.

Are retirement distributions taxed in Kansas?

Most retirement distributions are taxed as income in Kansas. However, the state offers a pension and retirement income exemption for certain types of retirement income, including military pensions and some distributions from may have access to retirement plans. The rules are specific, so check with the Kansas Department of Revenue or a tax professional to see if your retirement income qualifies for an exemption.

What happens if I do not file a Kansas tax return?

If you owe Kansas income tax and do not file, the state can assess penalties and interest on the unpaid amount. The longer you wait, the larger the debt grows. If you are owed a refund but do not file, you straightforward do not receive the money — there is no penalty, but you lose the refund. If you have not filed in past years, you can file late returns to resolve the issue.