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Kansas Tax Changes 2026: A CPA Guide | HelloBooks Kansas 2025 returns: standard deduction and exemption amounts, no rate cut for 2027 under SB 269, and a new portable benefit subtraction for contractors.

State returns · Kansas

Kansas tax return changes for 2026

Kansas kept its two-bracket structure for 2025, and its revenue-triggered rate cut will not fire for 2027. The new item worth flagging is for businesses that pay independent contractors.

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State returns · Kansas

Exemption allowance, joint

$18,320

Standard deduction, joint
$8,240
Per-dependent exemption
$2,320
2025 return due
April 15, 2026

Applies: Tax years 2025 to 2027From IRS.gov · checked October 10, 2026

2025 K-40 amounts

  • Standard deduction: $3,605 single, $8,240 married filing jointly, with separate amounts for head of household and married filing separately.
  • Exemption allowance: $18,320 for joint filers and $9,160 for other statuses, plus $2,320 for each dependent.
  • An extra $2,320 exemption is allowed for each child born in the year and for each qualified disabled veteran.

Rate cut trigger: not for 2027

Notice 26-11 explains SB 269, which cuts individual rates when revenue exceeds an inflation-adjusted base and the budget stabilization fund holds at least 15% of prior-year receipts. The fund passed the test for FY 2026 but revenue did not, so there will be no rate reduction for tax year 2027.

Portable benefit plans for contractors

Notice 26-08 covers HB 2602. For taxable years beginning after December 31, 2026, a hiring business may subtract contributions it makes to an independent contractor’s portable benefit plan, and the contractor may subtract contributions included in federal AGI, in each case without a double benefit.

If a business client starts contributing, record those amounts separately from contractor fees. HelloBooks already tracks contractor payments for 1099 purposes, so a separate expense account keeps the two apart. Kansas sales tax is at /us/sales-tax/kansas.

FAQ

Frequently asked questions

Will Kansas income tax rates drop in 2027?
No. Notice 26-11 says the revenue condition was not met for FY 2026, so there is no reduction for tax year 2027.

Sources

General information for tax professionals, not advice on a specific return. Figures are from IRS.gov on the date shown; check the current IRS instructions before filing.

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