Kansas does not have a state income tax on wages

Kansas eliminated its state income tax in 2023. Residents do not pay state income tax on wages, salaries, or most other forms of personal income. This means your paycheck is not subject to Kansas state withholding, and you will not file a Kansas state income tax return for wage income.

However, the absence of wage income tax does not mean Kansas has no taxes at all. The state collects revenue through sales tax, property tax, and corporate taxes. Understanding what you do and do not owe matters for your overall tax picture, especially if you have income from sources other than wages.

Key Takeaways

  • Kansas residents pay no state income tax on wages, salaries, or most personal income as of 2023.
  • You will not have Kansas state income tax withheld from your paycheck and do not file a Kansas state income tax return for wage income.
  • Kansas still collects sales tax (ranging from 5.7% to 10.725% depending on location) and property tax on real estate.
  • 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.
  • Self-employed individuals and business owners should verify their specific tax obligations, as business structure and income type affect what you owe.

How the Kansas income tax change affects your paycheck

When Kansas eliminated state income tax, employers stopped withholding state income tax from paychecks. If you were working in Kansas before 2023, you may have seen a change in your take-home pay because less money was being deducted. You should not see a Kansas state income tax line on your pay stub anymore.

This does not affect your federal income tax withholding. You still pay federal income tax, and your employer continues to withhold that amount. The change only applies to Kansas state tax. If you have questions about what your employer is withholding, ask your payroll or human resources department to review your pay stub with you.

What taxes Kansas residents still pay

Kansas funds state services through sales tax and property tax instead of income tax. The state sales tax rate is 5.7%, but many cities and counties add their own local sales tax on top of that. Depending on where you live and shop in Kansas, your total sales tax can range from 5.7% to 10.725%. This tax applies to most goods and some services.

Property tax in Kansas is assessed by county and varies by location. If you own a home or land in Kansas, you pay property tax to your county assessor based on the assessed value of your property. Renters do not pay property tax directly, but landlords often factor property tax costs into rent.

Businesses in Kansas pay corporate income tax and other business-related taxes. If you are self-employed or own a business, your tax obligations depend on your business structure and the type of income you earn. You may owe federal self-employment tax regardless of Kansas state tax status.

If you moved to Kansas from another state

If you moved to Kansas partway through the year, you may still owe income tax to your previous state for the months you lived there. States tax residents on income earned while they lived in that state. You will need to file a part-year resident return in your former state and report only the income you earned during the time you lived there.

When you file your federal return, you report all income for the full year. Your former state's return covers only the portion of the year you were a resident there. Keep documentation of your move date—lease agreements, utility bills, or a letter from your employer showing your start date in Kansas—to support your part-year resident claim.

Self-employed income and business taxes in Kansas

If you are self-employed or own a business, you do not pay Kansas state income tax on your business income. However, you still owe federal self-employment tax to cover Social Security and Medicare, regardless of where you live. This is a federal obligation, not a Kansas state one.

Your business structure—sole proprietorship, LLC, S-corporation, or C-corporation—determines how your income is taxed at the federal level and whether you owe Kansas corporate taxes. If you operate as a sole proprietor or single-member LLC, your business income flows through to your personal federal return. If you operate as a corporation, different rules apply. Consult a tax professional or the Kansas Department of Revenue if you need guidance on your specific business structure.

Frequently Asked Questions

Do I still file a Kansas tax return?

No. Kansas residents do not file a state income tax return for wage income. If you have no business income or other Kansas-specific tax obligations, you have no Kansas state return to file. You still file your federal return with the IRS.

What if I work in Kansas but live in another state?

You owe income tax to the state where you live, not where you work. If you live in Missouri but work in Kansas, you file a Missouri resident return and report your Kansas wages. Missouri taxes you on that income. Kansas does not tax non-residents on wages.

Does Kansas tax retirement income or Social Security?

Kansas does not tax any form of personal income, including retirement distributions, pensions, or Social Security benefits. However, your federal return may require you to report this income to the IRS, and you may owe federal tax depending on your total income and filing status.

Are there any Kansas tax credits or deductions I should know about?

Since Kansas has no state income tax, there are no Kansas state tax credits or deductions to claim. Any credits or deductions you use apply only to your federal return. Check the IRS website or speak with a tax professional about federal credits you may be may have access to to.

If I receive a refund from Kansas, what does that mean?

If you received a Kansas tax refund before 2023, it was for overpayment of state income tax in prior years. You should not receive new Kansas income tax refunds going forward because no state income tax is being withheld. If you believe you are owed a refund from a prior year, contact the Kansas Department of Revenue.