How did Kansas lower individual income tax rates starting in 2013?

Plain-English summary

Kansas Notice 13-10 (July 1, 2013) -- which replaces the revoked Notice 12-06 -- explains the individual income tax rate cuts in 2013 House Bill 2059.

The change. Section 1 of HB 2059 amended K.S.A. 79-32,110 to lower rates at all levels beginning in tax year 2013 and to replace the three-tier structure with a two-tier structure.

Married filing joint (over/under $30,000).

• 2013: 3.0% up to $30,000; $900 + 4.9% of excess
• 2014: 2.7%; $810 + 4.8%
• 2015: 2.7%; $810 + 4.6%
• 2016: 2.4%; $720 + 4.6%
• 2017: 2.3%; $690 + 4.6%
• 2018 and later: 2.3%; $690 + 3.9%

All other individuals (and estates and trusts) use the same percentages at the $15,000 bracket threshold (e.g., 2013: 3.0% up to $15,000, $450 + 4.9% of excess; 2018 and later: 2.3% up to $15,000, $345 + 3.9%).

Corporate rates unchanged. Corporate income tax rates were not affected (see Notice 12-09).

What this means for you

Individuals, estates and trusts

• Your Kansas income tax rate dropped beginning in 2013 and continued stepping down through 2018 under the two-tier schedule.

Tax preparers

• Apply the correct year's bracket amounts; joint filers use the $30,000 threshold and all others (plus estates/trusts) the $15,000 threshold.

Common questions

When did rates start dropping? Tax year 2013.

How many brackets now? Two, replacing the prior three-tier structure.

What are the 2018 rates? 2.3% on the lower bracket and 3.9% on the excess.

Did corporate rates change? No.

Citations and references

• K.S.A. 79-32,110 -- the individual income tax rate schedule, amended by Section 1 of 2013 House Bill 2059.
• Replaces the revoked Notice 12-06; corporate rates unchanged (Notice 12-09).

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 13-10

Original ruling text

Policy & Research Phone: 785-296-3081
915 SW Harrison St FAX: 785-296-7928
Topeka KS 66612-1588 www.ksrevenue.org
Nick Jordan, Secretary Department of Revenue Sam Brownback, Governor
Richard Cram, Director

                                              NOTICE 13-10

                                  INCOME TAX RATES LOWERED
                              FOR INDIVIDUALS, ESTATES, AND TRUSTS
                                          (July 1, 2013)

             [Note: This Notice replaces Notice 12-06 which has been revoked.]

  During the 2013 Legislative Session House Bill 2059 was passed and signed into law.

Section 1 of the Bill amends K.S.A. 79-32,110, the statute which establishes the rates of income
tax in Kansas. Beginning in tax year 2013, individual income tax rates are lowered at all levels.
In addition, the current three-tier rate structure is replaced by a two-tier structure.

   Kansas income tax rates for tax year 2013 and later years, are as follows:

                                      Married Filing Joint Returns

  For tax year 2013:

If the taxable income is: The tax is:
Not over $30,000 ......................... 3.0% of Kansas taxable income
Over $30,000 .............................. $900 plus 4.9% of excess over $30,000

  For tax year 2014:

If the taxable income is: The tax is:
Not over $30,000 ......................... 2.7% of Kansas taxable income
Over $30,000 .............................. $810 plus 4.8% of excess over $30,000

  For tax year 2015:

If the taxable income is: The tax is:
Not over $30,000 ......................... 2.7% of Kansas taxable income
Over $30,000 .............................. $810 plus 4.6% of excess over $30,000

  For tax year 2016:

If the taxable income is: The tax is:
Not over $30,000 ......................... 2.4% of Kansas taxable income
Over $30,000 .............................. $720 plus 4.6% of excess over $30,000

  For tax year 2017:

If the taxable income is: The tax is:
Not over $30,000 ......................... 2.3% of Kansas taxable income
Over $30,000 .............................. $690 plus 4.6% of excess over $30,000

  For tax year 2018, and all tax years thereafter:

If the taxable income is: The tax is:
Not over $30,000 ......................... 2.3% of Kansas taxable income
Over $30,000 .............................. $690 plus 3.9% of excess over $30,000

                                         All Other Individuals
                                    (As Well As Estates and Trusts)

  For tax year 2013:

If the taxable income is: The tax is:
Not over $15,000 ......................... 3.0% of Kansas taxable income
Over $15,000 .............................. $450 plus 4.9% of excess over $15,000

  For tax year 2014:

If the taxable income is: The tax is:
Not over $15,000 ......................... 2.7% of Kansas taxable income
Over $15,000 .............................. $405 plus 4.8% of excess over $15,000

  For tax year 2015:

If the taxable income is: The tax is:
Not over $15,000 ......................... 2.7% of Kansas taxable income
Over $15,000 .............................. $405 plus 4.6% of excess over $15,000

  For tax year 2016:

If the taxable income is: The tax is:
Not over $15,000 ......................... 2.4% of Kansas taxable income
Over $15,000 .............................. $360 plus 4.6% of excess over $15,000

  For tax year 2017:

If the taxable income is: The tax is:
Not over $15,000 ......................... 2.3% of Kansas taxable income
Over $15,000 .............................. $345 plus 4.6% of excess over $15,000

  For tax year 2018, and all tax years thereafter:

If the taxable income is: The tax is:
Not over $15,000 ......................... 2.3% of Kansas taxable income
Over $15,000 .............................. $345 plus 3.9% of excess over $15,000

                             Corporate Income Tax Rates Not Affected

 Corporate income tax rates have not changed. For more information about corporate

income tax, please see Notice 12-09.

                               Taxpayer Assistance

Additional copies of this notice, forms or publications are available from our web site,
www.ksrevenue.org. If you have questions about this Notice, please contact:

                           Taxpayer Assistance Center
                          Kansas Department of Revenue
                          915 SW Harrison St., 1st Floor
                            Topeka, KS 66612-1588
                              Phone: 785-368-8222
                               Fax: 785-291-3614