(UPDATED to show that governor’s plan increases the personal exemption)
Here’s a look at how the tax bill vetoed by Gov. Laura Kelly compares to a plan that she proposed for lawmakers to consider when they get back to work on Friday with the legislative session scheduled to end on Tuesday. Here’s a fiscal analysis of the governor’s plan by the budget office, including the content. Here’s the plan approved by the Legislature along with the cost analysis by the Department of Revenue.
Tax Brackets
Legislature’s plan: two
Governor’s plan: three
Income tax rates
Legislature’s plan: 5.55%/5.15%
Governor’s plan: 5.65%/5.2%/3%
Current level: 5.7%/5.25%/3.1%
Tax threshold:
Legislature’s plan: Income threshold for the 5.15% tax bracket would be up to $23,000 for single filers and $46,000 for joint filers. Incomes above those levels would be taxed at rate of 5.55% The threshold for the lowest bracket in Kansas is now $15,000 for single filers and $30,000 for joint filers.
Governor’s plan: N/A
Standard deduction
Legislature plan: $8,240 (married)/$6,180 (head of household)/$3,605 (single)
Governor’s plan: $10,000 (married)/$7,500 (head of household)/$5,000 (single)
Current level: $8,000 (married)/$6,000 (head of household)/$3,500 (single)
Personal exemption
Legislature plan: $18,320 (married couples)/$9,160 (single)/$2,320 (dependents). The exemption is now set at $2,250 for everyone.
Governor’s plan: Increases to $2,400
Property tax exemption
Legislature: Exempts first $100,000 in property taxes from 20-mill property tax for schools. Lowers property tax rate to 19.5 mills.
Governor’s plan: Exempts first $125,000 in property taxes from 20-mill property tax for schools. Does not lower mill rate.
Food sales tax
Legislature’s plan: Eliminates tax in July.
Governor’s plan: Eliminates tax in July.
Social Security
Legislature’s plan: Eliminates income tax
Governor’s plan: Eliminates income tax
Child tax credit
Legislature’s plan: N/A
Governor’s plan: Expands state’s child and dependent care tax credit to 100% of the federal allowance. State law currently caps the credit at 25% of the federal credit, which provides a maximum of $2,100 for out-of-pocket expenses for child care.
Cost
Legislature’s plan (state general fund)
2025: $628.8 million
2026: $468.4 million
2027: $476.5 million
Total: $1.57 billion
Governor’s plan (state general fund)
2025: $542 million
2026 $400.1 million
2027: $411.1 million
Total: $1.35 billion
