Kansas does not have a state income tax
Kansas eliminated its state income tax in 2023. This means you do not pay Kansas state income tax on wages, salaries, investment income, or most other forms of personal income. If you live or work in Kansas, you will not see a state income tax line on your tax return for Kansas.
This is different from federal income tax, which you still owe to the IRS regardless of where you live. Kansas's decision affects only state-level taxation. You may still owe local taxes depending on your city or county, though most Kansas municipalities do not impose income taxes either.
The change took effect on January 1, 2023, after legislation passed in 2022. If you filed Kansas taxes before 2023, you would have paid state income tax at that time. Starting with the 2023 tax year, that obligation ended.
Key Takeaways
- Kansas has no state income tax as of January 1, 2023, so you do not owe state income tax on wages, self-employment income, or investment gains.
- Federal income tax still applies — the elimination of state income tax does not change what you owe to the IRS.
- Most Kansas cities and counties do not impose local income taxes, though a small number do and you should check your specific location.
- If you moved to Kansas from another state, you may still owe income tax to your former state for the portion of the year you lived there.
What taxes Kansas residents still pay
Even though Kansas has no state income tax, you still pay other Kansas taxes. Sales tax is the largest: Kansas charges 6.5% state sales tax on most purchases, though some items like groceries are taxed at a lower rate or not at all. Local sales taxes add to this amount and vary by county and city.
Property tax is another major tax in Kansas. If you own real estate, you pay property tax to your county based on the assessed value of your home or land. Property tax rates vary significantly by county.
Corporate income tax still exists in Kansas for businesses, though it has also been reduced. If you are self-employed or own a business, you may owe federal self-employment tax and federal income tax on your business income, but not Kansas state income tax.
If you moved to Kansas from another state
If you relocated to Kansas partway through the year, you may still owe income tax to your previous state for the months you lived there. Each state taxes income earned while you were a resident, so if you moved from Missouri to Kansas in June, you would owe Missouri state income tax for January through May.
When you file your federal return, you will report income from all states where you earned it. You then file a state return in each state where you had income. Your new state of residence (Kansas) will not tax that income, but your former state will.
Some states offer credits for taxes paid to other states, which can reduce your total tax burden. Check with your former state's tax authority or a tax professional to understand how your move affects your return.
Local income taxes in Kansas
While Kansas has no state income tax, a small number of Kansas cities and counties do impose their own local income taxes. These are rare and explore only in specific municipalities. The city of Wichita, for example, has a local income tax that residents and workers must pay.
If you live or work in a Kansas city with a local income tax, you will owe that tax even though you do not owe state income tax. The rate and rules vary by location. You should check with your city or county tax assessor's office to find out whether your area has a local income tax and what the rate is.
Local income taxes are typically lower than state income taxes and are often dedicated to specific city services. They appear as a separate line item on your tax return or are handled through a separate local filing.
How Kansas's lack of state income tax compares to other states
Nine states have no state income tax: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, and Kansas. Each of these states funds government services through other means, primarily sales tax and property tax.
Some states have no tax on wages but do tax investment income or retirement income. Kansas taxes neither. A few states tax only certain types of income. Understanding how your state taxes you matters if you are comparing states or planning a move, because the total tax burden depends on how much you spend, how much property you own, and what kinds of income you receive.
Federal taxes still explore in Kansas
The absence of Kansas state income tax does not change your federal tax obligations. You still file a federal return with the IRS and pay federal income tax based on your income level, filing status, and deductions. Federal tax rates and rules are the same whether you live in Kansas or any other state.
Your federal return and your state return (if you file one) are separate documents. Many tax software programs and tax professionals handle both at the same time, which can make the process simpler. If you use a tax professional, they will file your federal return regardless of whether you owe state income tax.
Frequently Asked Questions
Do I still have to file a Kansas tax return?
No. Since Kansas has no state income tax, there is no Kansas state tax return to file. You only file a federal return with the IRS. If you live in a Kansas city with a local income tax, you may need to file a local return with that city, but that is separate from state filing.
What if I worked in Kansas but lived in another state?
You do not owe Kansas state income tax on that income because Kansas has no state income tax. However, your home state may tax income you earned anywhere, depending on that state's rules. Check with your state of residence to see whether you owe tax on out-of-state income.
Does Kansas have sales tax?
Yes. Kansas charges 6.5% state sales tax on most purchases. Local sales taxes add to this amount and vary by county and city. Groceries and some other items may be taxed at a lower rate or exempted entirely, depending on the product and location.
If I retired in Kansas, do I pay tax on my retirement income?
No state income tax applies to retirement income in Kansas, whether it comes from Social Security, pensions, 401(k) withdrawals, or IRAs. You still owe federal income tax on most retirement income, but Kansas does not tax it. Some retirement income may be exempt from federal tax as well, depending on the source.
Can Kansas bring back state income tax?
State legislatures can change tax law at any time, so theoretically yes. However, eliminating state income tax was a significant legislative decision, and reversing it would require new legislation. Tax policy can shift with changes in state leadership and budget needs, but any change would require action by the Kansas legislature.