Kansas Governor Laura Kelly signed into law S. 1, which retroactive to January 1, 2024, reduces the personal income tax brackets from three to two with the highest tax rate lowered from 5.7% to 5.58%. The law also increases the personal exemption and standard deductions.

The Kansas Department of Revenue has issued an updated withholding formula that employers should apply immediately when computing Kansas state income tax withholding on wages.

Kansas income tax withholding formula effective immediately

Annual state income tax for married individuals filing joint

Annual state income tax for single taxpayers, including head of household

Personal exemptions and standard deductions

Also effective retroactive to January 1, 2024, the personal exemption and standard/head of household deductions increase as follows:

• Personal exemption. The personal exemption from state income tax increases from $2,250 for each person on a Kansas income tax return to $18,320 for married taxpayers filing joint and $9,160 for all other taxpayers. New for 2024, an additional $2,320 exemption is allowed for each dependent listed on the Kansas income tax return.
• Standard deduction. The standard deduction increases from $3,500 to $3,605 for single taxpayers and from $8,000 to $8,240 for married taxpayers. The head of household deduction increases from $6,000 to $6,180.

Supplemental wages

For irregular wage payments such as bonuses that are identified separately from wages, employers may use a supplemental withholding rate of 5%. (Kansas Withholding Tax Guide, p. 8)

Ernst & Young LLP insights

Employers might consider notifying employees of the changes in the Kansas personal income tax rates, exemptions and standard deductions so that employees can determine if they wish to submit a revised K-4, Kansas Employee's Withholding Allowance Certificate.