Kansas House Unanimously Approves Bill That Could Slash Income Tax Rates

Posted March 28, 2024

The Kansas House of Representatives voted unanimously to approve a bill that would restructure state income, sales and property taxes for Kansans.

On Tuesday, Kansas Democrats and Republicans voted 123-0 on Senate Bill 300. The bill would see a restructuring of individual income tax brackets, exempt Social Security income from the individual income tax, increase standard deduction and personal exemption amounts and accelerate the termination of sales tax on food.

Kansans’ income tax would be structured in three brackets; individuals with income of less than $7,000 will not pay any tax, those who earn $7,001 to $30,000 would be taxed at 5.2 percent and those who earn an income of $30,001 and above would be taxed at 5.65 percent.

The standard deduction on state income taxes would increase by 3 percent for individuals, married couples and households.

All Social Security benefits would be exempt from Kansas income tax at the beginning of tax year 2024.

The House Bill would also accelerate the elimination of the sales tax rate on food from Jan. 1, 2025, to July 1, 2024. Additionally, the bill would also raise the sales tax revenue distributed to the State Highway Fund to 18 percent — going into effect on July 1, 2024.

The uniform school finance levy would decrease from 20 mills to 18 mills for K-12 public education. The state property tax would be raised from $40,000 to $100,000.

The bill will now move to the Kansas Senate. The Kansas Senate will vote to send the bill to Kansas Gov. Laura Kelly or vote to send it to conference to resolve any differences between their original measure and any changes made by the House.