by Topeka, Kansas – Seniors in Kansas will see major tax relief in 2025, thanks to a new provision in the One Big Beautiful Bill (OBBB). The federal legislation introduces an extra $6,000 standard deduction for taxpayers aged 65 and older. For married couples where both spouses qualify, the deduction doubles to $12,000, on top of the regular federal standard deduction.
This new deduction arrives as Kansas continues to refine its state tax system, providing additional advantages for retirees. With Social Security tax reductions already underway at the state level, the combined effect could mean substantial savings for older Kansans.
What Is the New $6,000 Senior Deduction?
The IRS explains that beginning in tax year 2025, seniors aged 65+ can claim an extra $6,000 standard deduction. Married couples filing jointly, with both spouses 65 or older, can claim $12,000.
This deduction is in addition to the pre-existing senior bonus deduction, which is worth $2,000 for single seniors and $1,600 for each spouse in a joint return. In practice, this means:
- A single 67-year-old filer could receive an additional $8,000 in deductions.
- A married couple, both 65+, could qualify for $13,200 in extra deductions compared to younger taxpayers.
The OBBB deduction is also unique because it applies whether or not a taxpayer chooses to itemize, giving retirees more flexibility.
Income Limits and Phaseouts
The new deduction isn’t unlimited. The OBBB introduces a 6% phaseout for higher-income seniors:
- Single filers: Phaseout starts at $75,000 of adjusted gross income (AGI) and ends at $175,000.
- Married filing jointly: Phaseout begins at $150,000 and fully phases out at $250,000.
That means middle-income Kansans are most likely to benefit, while higher-income retirees may see a reduced deduction. A clear breakdown of these limits is available from the Bipartisan Policy Center.
Kansas State Tax Benefits for Seniors
Alongside the new federal relief, Kansas has been enacting changes designed to ease the tax burden on retirees.
1. Social Security Income Exemption Expansion
Kansas has historically taxed Social Security benefits, but as of 2024 legislation, the state is phasing in a full exemption. Beginning in tax year 2025, all Social Security benefits will be exempt from Kansas state income tax.
This makes Kansas more competitive with neighboring states that already avoid taxing Social Security.
2. Retirement Income and Pensions
Unlike some states, Kansas does tax IRA, 401(k), and pension withdrawals, though the new Social Security exemption will soften the blow for many seniors. Seniors who rely heavily on retirement accounts for income will still face state tax obligations. You can find more details on these rules at the Kansas Department of Revenue.
3. Property Tax Relief
Kansas also offers property tax relief programs for seniors, including the Homestead Refund Program and the Safe Senior Property Tax Relief Program, which can provide refunds or credits for qualifying seniors with limited income.
How Federal and State Deductions Work Together
When the new federal $6,000 senior deduction is combined with Kansas’s Social Security tax exemption, many retirees could see a dramatic reduction in their tax bills.
For example:
A 70-year-old retiree in Wichita receiving $22,000 in Social Security and $18,000 in IRA withdrawals would pay no Kansas income tax on Social Security and would still get the benefit of the federal extra deductions. This could reduce federal taxable income by more than $30,000, significantly lowering or even eliminating federal tax liability.
Read Also: Understanding the Delaware Extra Standard Deduction for Seniors Over 65
Planning Tips for Kansas Seniors
- Know your income brackets: If your AGI approaches the phaseout range, planning withdrawals carefully could help preserve your eligibility.
- Factor in Social Security changes: From 2025 onward, Kansas no longer taxes Social Security income, making the state more senior-friendly.
- Consult a tax professional: With overlapping federal and state changes, professional guidance can ensure you maximize deductions.
- Remember the timeline: The federal OBBB deduction is temporary and set to expire in 2028, unless extended by Congress.
Final Thoughts
For seniors in Kansas, 2025 marks a turning point in tax policy. The federal $6,000 deduction for those over 65, combined with the state’s new Social Security exemption, creates an unprecedented opportunity for tax savings.
Older Kansans living on fixed incomes will especially benefit, as these policies aim to reduce financial strain and help seniors keep more of their retirement income.
Do you think Kansas is becoming more retirement-friendly with these changes? Share your thoughts in the comments at ibwhsmag.com.
