Kansas Paycheck Calculator 2025

Kansas State Income Tax Explained

Kansas utilizes a graduated income tax system. This means that higher income earners pay a higher percentage of their income in taxes. The rates are relatively low compared to some other states, ranging from 3.10% to 5.70% for the 2024 tax year.

Your tax rate depends on your taxable income and your filing status. Kansas taxable income is based on your federal adjusted gross income (AGI) with specific state modifications.

2024 Kansas Tax Brackets

For Single, Head of Household, or Married Filing Separately:

• 3.10% on income between $0 and $15,000.
• 5.25% on income between $15,001 and $30,000.
• 5.70% on income over $30,000.

For Married Filing Jointly:

• 3.10% on income between $0 and $30,000.
• 5.25% on income between $30,001 and $60,000.
• 5.70% on income over $60,000.

Note: These brackets apply to your taxable income after deductions.

Federal Taxes and FICA

In addition to state taxes, all Kansas employees are subject to federal taxes.

Federal Income Tax

This is a progressive tax with rates starting at 10% and going up to 37%. Your withholding depends on the information you provide on Form W-4.

FICA Taxes

• Social Security: 6.2% of earnings up to $168,600 (2024 limit).
• Medicare: 1.45% of all earnings (plus 0.9% for high earners generally above $200k).

Does Kansas Have Local Income Taxes?

Good news: Kansas generally does not have local city or county income taxes on wages. However, the state does have an "intangibles tax" that local governments can levy on earnings from interest and dividends, but this does not affect your regular paycheck from employment.

Kansas Tax Deductions and Credits

Kansas offers a standard deduction which varies by filing status. For 2024, it is approximately:

• $3,500 for Single.
• $8,000 for Married Filing Jointly.
• $6,000 for Head of Household.

Personal exemptions are also available, typically around $2,250 per person.

Strategies to Maximize Your Paycheck

1. Retirement Contributions: Contributing to a 401(k) or traditional IRA reduces your taxable income for both federal and Kansas state tax purposes.
2. HSA/FSA: Using pre-tax dollars for medical expenses lowers your tax bill.
3. Kansas Learning Quest 529: Contributions to a Kansas 529 plan are deductible from Kansas state income tax, up to $3,000 per beneficiary per year ($6,000 for joint filers).

Cost of Living in Kansas

Kansas offers one of the most affordable costs of living in the United States, making it an attractive destination for workers and families who want their paycheck to stretch further. Here is how Kansas compares across key categories:

• Housing: The median home price in Kansas is significantly below the national average. Cities like Wichita and Topeka offer particularly affordable housing markets compared to coastal cities.
• Groceries: Food costs in Kansas are approximately 5-8% below the national average, thanks to the state's agricultural economy.
• Transportation: Gas prices in Kansas tend to be lower than the national average due to proximity to oil refining facilities. However, most residents need a personal vehicle as public transit is limited outside of Kansas City.
• Utilities: Electricity and natural gas costs are generally moderate, though summers can bring higher bills due to air conditioning needs.

These factors combined mean that a paycheck in Kansas often goes further than the same salary would in states like California, New York, or Colorado. When evaluating job offers or planning relocations, consider the overall cost of living, not just the gross salary.

Kansas Taxes on Retirement Income

Understanding how Kansas taxes retirement income is crucial for long-term financial planning. Here is a breakdown:

• Social Security: As mentioned, Social Security benefits are exempt from Kansas income tax if your federal AGI is $75,000 or less. Above that, benefits are fully taxable.
• 401(k) and IRA Distributions: Withdrawals from traditional 401(k)s and IRAs are fully taxable at the standard Kansas income tax rates.
• Pensions: Kansas does not exempt private sector pensions. However, certain public pensions (federal and Kansas state government) may receive favorable treatment.
• Military Retirement Pay: As of 2022, Kansas fully exempts military retirement pay from state income tax, making it an attractive state for veterans.

Retirees considering Kansas should weigh these factors when planning their income sources and withdrawal strategies.

Kansas Minimum Wage and Overtime Laws

Kansas follows federal minimum wage standards, which currently stand at $7.25 per hour. However, many employers in Kansas offer wages above this minimum due to market competition. Here are key employment laws affecting your paycheck:

• Overtime: Kansas follows the federal FLSA guidelines. Employers must pay time-and-a-half (1.5x) for hours worked over 40 in a single workweek.
• Pay Frequency: Kansas law requires employers to pay employees at least once per month, though most employers pay bi-weekly or semi-monthly.
• Final Paychecks: If you are terminated or resign, Kansas law requires your employer to pay your final wages by the next regular payday.

Tax Credits Available to Kansas Residents

Kansas offers several tax credits that can reduce your overall tax liability:

• Earned Income Tax Credit (EITC): Kansas offers a state EITC equal to 17% of the federal EITC. This is a refundable credit that can result in a tax refund even if you owe no state taxes.
• Child and Dependent Care Credit: A credit is available for expenses paid for the care of children or dependents to allow you to work or look for work.
• Food Sales Tax Credit: Low-income residents may qualify for a credit to offset state sales tax paid on food purchases.
• Historic Preservation Credit: If you restore a historic property, you may be eligible for a tax credit equal to 25% of qualified expenses.

These credits are claimed when you file your annual Kansas income tax return and can significantly reduce what you owe or increase your refund.

Working Across State Lines: Missouri-Kansas Considerations

The Kansas City metropolitan area straddles both Kansas and Missouri. This creates unique tax situations for many workers:

• No Reciprocity Agreement: Kansas and Missouri do not have a tax reciprocity agreement. If you live in Kansas and work in Missouri, you will pay Missouri income tax on your wages and then file a Kansas return to claim a credit for taxes paid to Missouri.
• Remote Work: If you work remotely for a Missouri employer while living in Kansas, you typically only pay Kansas income tax.
• Withholding Forms: Make sure your employer has the correct state tax forms on file. Kansas employees use Form K-4, while Missouri employees use Form MO W-4.

This situation requires careful tax planning to avoid double taxation and ensure compliance with both states' requirements.

Kansas vs. Missouri: The "Border War" Explained

For residents of the Kansas City metro area, the choice between living in Kansas (e.g., Overland Park, Olathe) and Missouri (e.g., Kansas City, Lee's Summit) often comes down to taxes. The "Border War" isn't just about sports; it's about your paycheck.

Income Tax Comparison

Kansas: Top marginal rate is 5.70%.
Missouri: Top marginal rate is 4.80% (as of 2024, down from higher rates previously).

At first glance, Missouri seems to win. However, Kansas allows for higher standard deductions in some cases, and Missouri has the 1% Kansas City earnings tax (E-tax) for anyone living or working in KCMO.

The KCMO E-Tax Factor

If you live in Overland Park, KS (no local tax) but work in downtown Kansas City, MO, you pay the 1% E-tax on your gross earnings. This 1% flat tax often negates the slight advantage Missouri has in state income tax rates.

Property Tax Considerations

Kansas generally has higher property tax rates than Missouri. When calculating your "true" take-home pay (income minus effective cost of living), you must factor in that a $300,000 house in Johnson County, KS, will likely have a higher tax bill than a comparable home in Jackson County, MO.

Living in Kansas: Financial Pros and Cons

Beyond the tax rates, how far does a dollar actually go in the Sunflower State?

Understanding Your Kansas Paystub

Reading your paystub correctly ensures you catch errors early. Here is what to look for on your Kansas wage statement:

• Fed Withholding: The amount sent to the IRS based on your W-4.
• KS Withholding: The state income tax deducted based on your K-4 form.
• OASDI: Social Security tax (6.2%).
• Medicare: Medicare tax (1.45%).
• Benefits: Deductions for health insurance, 401(k), etc.

Understanding Form K-4

Form K-4 is the state equivalent of the federal W-4. It determines how much state tax is withheld from your paycheck. You should update this form whenever you have a major life change, such as marriage, divorce, or the birth of a child, to ensure your withholding matches your actual tax liability.

Kansas Supplemental Wage Tax Rates

Supplemental wages include bonuses, commissions, overtime pay, accumulated sick leave, and severance pay. Kansas employers have specific rules for withholding on these payments:

• Flat Rate Method: Employers may choose to withhold a flat 5.0% on supplemental wages if they are paid separately from regular wages.
• Aggregate Method: If paid together with regular wages, they are taxed according to the standard withholding tables based on the total amount.

Knowing this helps avoid surprises when a large bonus check comes in slightly smaller than expected due to taxes.

Unemployment Insurance in Kansas

Kansas employers verify and pay Unemployment Insurance (UI) taxes to the state. This is an employer-only tax; employees do not have this deducted from their pay.

For the 2024 tax year, employers pay tax on the first $14,000 of each employee's wages. This fund supports workers who have lost their jobs and meet eligibility requirements for unemployment benefits.