Kansas 2025 Tax Update: Two Brackets, 5.58% Top Rate

(KANSAS) Kansas taxpayers, including thousands of recent arrivals on work visas and new green card holders, will file the 2025 tax year under the same simplified state income tax rules adopted in 2024: a two‑bracket income tax system with a 5.2% rate on the first slice of taxable income and 5.58% above fixed thresholds. Governor Laura Kelly signed the omnibus tax legislation last year, and state officials have not announced further rate cuts or a return to three brackets as of December 2025.

For immigrants building credit histories, renewing visas, or saving for filing fees, the stability matters as much as the modest cut in the top rate from 5.7% that began January 1, 2024. That certainty helps employers set withholding and avoid payroll surprises.

Current tax brackets and how they apply

• Married filing jointly
  • 5.2% on taxable income from $0 to $46,000
  • Then owe $2,392 plus 5.58% of income over $46,000
• Single filers, heads of household, married filing separately
  • 5.2% on taxable income from $0 to $23,000
  • Then owe $1,196 plus 5.58% of income over $23,000

Kansas does not index these brackets for inflation each year, but lawmakers raised standard deductions and personal exemptions to soften the impact of higher rent and food prices.

The Kansas Department of Revenue’s online guidance for individual income tax filing and withholding remains posted at KDOR’s official site today.

Estimated savings and local recruitment impacts

TurboTax estimates cited in the new guidance suggest a typical family of four earning $80,000 could pay $400–$600 less in Kansas income tax than under the pre‑2024 structure. The reasons:

• More income stays in the lower 5.2% bracket
• Deductions rose

Those savings can cover small but important items like passport photos, translations, or portions of federal filing fees that many immigrants face during status changes.

According to analysis by VisaVerge.com, the simpler bracket chart is now a talking point for recruiters trying to attract nurses, engineers, and meatpacking supervisors to smaller Kansas cities where employers struggle to fill shifts. Still, the savings depend on taxable income after deductions and credits, so they are not automatic.

Who must use the two‑bracket system

State officials stress that anyone with Kansas‑sourced income must use the two‑bracket system for returns covering 2024 and the 2025 tax year, including:

• Full‑year residents
• Part‑year movers
• Nonresidents who commute in for work
• People on H‑1B and L‑1 visas
• Employment‑based green card holders
• Asylees and DACA recipients who earn taxable wages after arriving in the United States 🇺🇸

State tax rules generally follow the fact of income rather than immigration status. The filing deadline for 2025 returns is April 15, 2026, with an October extension available.

Governor Kelly has focused her 2025 agenda on sales tax relief, not income tax rates. KDOR said no 2026 withholding table shifts have been announced publicly as of December 2025.

Reported effects and administrative notes

By December 2025, KDOR reported more than $150 million in savings passed to taxpayers and said compliance rates rose by 5%. Officials use these figures to argue that simpler rules make filing less intimidating.

“Withholding at 5.2% base; check kw-100.es for tables.”

Payroll departments—especially at farms and food processors that hire many immigrant workers—have had to adjust software since the law took effect, because withholding errors can trigger surprise balances at filing time.

• The state’s main income tax form remains IT-1040
• Preparers say the new brackets reduce math mistakes when employees change jobs midyear or move across state lines
• For employers, the goal is steady paychecks and predictable refunds

Worked examples (before deductions and credits)

Tax practitioners provide straightforward examples now appearing in client letters:

1. Married couple with $60,000 Kansas taxable income
   • $2,392 on the first $46,000
   • $781.20 on the remaining $14,000
   • Total: $3,173.20
2. Single worker with $30,000 taxable income
   • $1,196 on the first $23,000
   • $390.60 on the next $7,000
   • Total: $1,586.60

These figures come before the larger standard deductions—$8,000+ for single filers and $16,000+ for joint filers—and before personal exemptions of $2,460 per person, which can matter for families reunifying after years apart.

Kansas also expanded the household and dependent care credit to 50% of the federal credit for expenses, a break that can help parents keep working while a spouse waits on status paperwork.

ITINs, forms, and resources for immigrants

Immigrants who do not yet have a Social Security number often ask whether Kansas will accept an Individual Taxpayer Identification Number (ITIN). KDOR guidance says taxpayers can file with an ITIN once it is issued. This can matter for spouses abroad or students shifting from F‑1 work authorization to employer sponsorship.

• The ITIN application is made on Form W‑7, filed with a federal tax return.
• The IRS provides instructions and the form on the official W‑7 page.

Tax lawyers note that accurate state returns can support later immigration filings by showing consistent residence and employment—even though tax agencies do not decide visa cases. That record can be important when people apply to naturalize.

Self‑employed taxpayers and estimated payments

Self‑employed newcomers, including refugees who start small businesses, may need to prepay Kansas tax during the year via quarterly estimated payments.

• Use Form K‑40ES for estimated payment calculations.
• KDOR posts state income tax forms and payment vouchers through its Kansas individual income tax forms portal, which preparers recommend bookmarking early in the year.

Accountants emphasize the two rates still apply; the difference for self‑employed filers is that the taxpayer must set aside money without an employer doing withholding. For many immigrant families, that discipline competes with rent deposits, remittances, and travel costs. Some also juggle exchange‑rate swings when sending money back to India 🇮🇳 or Mexico 🇲🇽 from Kansas paychecks.

Practical guidance for employers and employees

Tax firms advise clients not to expect sudden midstream changes. Smith Howard, a tax firm cited in the source material, summarized the outlook:

“KS ranges 5.2–5.58%; no 2026 shifts signaled.”

For nonresidents (for example, consultants who live in Missouri and take temporary assignments in Wichita or Topeka), the key is separating Kansas‑source wages from income earned elsewhere because Kansas taxes only the portion tied to the state.

Some foreign nationals may rely on federal tax treaties—often discussed for workers from India 🇮🇳 and Mexico 🇲🇽—to reduce double taxation at the federal level, but state treatment can differ, so preparers check rules carefully.

The source material reports demand for bilingual tax help rose 15%, indicating paperwork can overwhelm residents.

Property tax change and withholding example

Beyond income tax rates, the 2024 law lifted the statewide school levy property tax exemption to $100,000 of homestead value, with KDOR reporting average 2025 savings of $350.

An example from withholding guidance:

• A $1,140 weekly wage, after a $343 exemption, produces $41.44 in Kansas withholding at 5.2%.

Advocates say immigrants often learn these details only after a first surprise refund or bill. The source material provided no named individual accounts to illustrate that moment. Preparers encourage workers to:

• Save pay stubs
• Keep W‑2 and 1099 forms
• Ask questions early

With inflation lingering, every reduction can matter for newcomers putting down roots.