Kansas Income Tax Marginal Rates Legislation

The Kansas Legislature is currently working to override the veto of Kansas Governor Kelly on House Bill 2284 in order to enact a flat tax on Kansas source income. Governor Kelly also had a piece of legislation she seeks to pass the Kansas Legislature, House Bill 2586. Both Bills seek to eliminate the sales tax on groceries, exempt all Social Security benefits from state income tax (retro to the start of 2024) and provide some relief on property taxes. The flat tax rate enacted by the Kansas Legislature, H.B. 2284, is a 5.25% rate on income above $6,150.00 for single filers and $12,300.00 for married couples filing joint. Meaning there would be no income tax imposed on the first $6,150.00 or $12,300.00. H.B. 2284 would also increase the personal exemption by $50.00 per taxpayer, spouse, and dependent. More importantly, unlike H.B. 2586, H.B. 2284 indexes the standard deduction amounts and the personal exemptions amounts to inflation to combat the loss of real value of these deductions and exemptions into future years as cost of living increases. Similar to COLA adjustments for Social Security checks.