By Tim Carpenter, Kansas Reflector
TOPEKA — A surprise outpouring of individual income tax receipts in May drove overall Kansas revenue collections $158 million above the monthly projection.
The Kansas Department of Revenue received $657 million during the month, which was 31.7% above the estimate for May.
“Surpassing estimates this month is a positive indicator, but we remain diligent and focused on maintaining long-term financial health,” said Gov. Laura Kelly.
The revenue department said individual income tax collections in May totaled $314 million. That was $144 million or 85.1% above the estimate for the month and a 3.1% increase over May 2024.
In terms of corporate income taxes, the state took in $29.2 million — a figure $840,880 or 2.8% below the estimate for May. It represented a decrease of 26.8% from May 2024.
Combined retail sales and compensating use tax receipts in May were $282 million. The total surpassed the projection by $11.1 million or 4.1% and was consistent with the total in May 2024.
House Speaker Dan Hawkins, a Wichita Republican seeking the GOP nomination for state insurance commissioner in 2026, said the 2024 Legislature was justified in passing a substantial tax reform bill signed into law by the Democratic governor. The bill offered an estimated $1.2 billion in tax relief over a three-year period.
“When we put money back in taxpayers’ pockets, not big government, Kansas families and communities thrive,” Hawkins said.
The 2024 law negotiated by Kelly, Hawkins and Senate President Ty Masterson established a two-bracket system for calculating personal income taxes. For married individuals filing jointly, taxable income up to $46,000 would be taxed at 5.2%, while taxable income above $46,001 would be taxed at 5.58%. Kansas’ previous three-bracket system pegged rates at 3.1%, 5.2% and 5.7% depending on income.
Under the 2024 legislation, the personal exemption and standard deduction on state income taxes were raised and the state income tax on Social Security benefits was abolished.
“These latest revenue numbers clearly show that passing the comprehensive tax relief package last year was hands down the right move,” Hawkins said. “Kansas is in a strong position as long as we stay focused on smart, conservative leadership.”
