Company News

Kansas Senate Bill 1

July 1, 2024

Kansas Senate Bill 1 has been signed into law by Governor Kelly. The bill had overwhelming support in both the House and Senate.

The Kansas income tax changes outlined are retroactive to January 1, 2024. Key provisions of the bill are as follow –

• One of the most important provisions is the elimination of Kansas Income Tax on Social Security Income. Previously, households with Federal Adjusted Gross Income over $75,000 were taxed by Kansas on their Social Security Income.

• The bill increases the tax credit for household and dependent care expenses from 25% to 50% of the federally allowed amount.

• The new law will reduce the current three bracket system from three tiers down to two. For married individuals filing jointly, taxable income from $0 to $46,000 will be taxed at 5.2% while income above $46,000 will be taxed at 5.58%. For all other filers, taxable income from $0 to $23,000 will be taxed at 5.2% while income above $23,000 will be taxed at 5.58%. Previously, the existing three-bracket system had income tax rates of 3.1%, 5.2% and 5.7% depending on levels of income.

• The bill increased the personal exemption allowance amount, currently set at $2,250 for all persons on the return, to $18,320 for married couples filing joint returns, $9,160 for all other filers, and an additional $2,320 for each dependent listed on the return.

• The standard deduction will grow from $3,500 to $3,605 for single filers and from $8,000 to $8,240 for married filers. The head of household deduction will expand from $6,000 to $6,180.