Kansas does not have an estate tax, but residents of the Sunflower State may have to pay a federal estate tax if their estate is of sufficient size. This guide walks Kansans who are starting to think about estate planning through what they need to know to protect their legacy after they pass.
Do you have estate planning questions? Speak with a financial advisor today.
Kansas Estate Tax
Kansas does not levy an estate tax, making it one of 38 states without an estate tax.
What Is the Estate Tax?
Sometimes called the “death tax,” the estate tax is a tax levied on the estate of a person who has recently died. The estate tax applies before the estate is dispersed to a person’s heirs. Only estates containing assets surpassing a certain threshold – which varies from state to state – are subject to the estate tax.
The estate tax is not to be confused with the inheritance tax, which is a different tax. The inheritance tax applies to money or assets after they are already passed on to a person’s heirs. Beneficiaries are responsible for paying the inheritance tax on what they inherit.
Kansas Inheritance and Gift Tax
Kansas has no inheritance tax either. Another state’s inheritance laws may apply, however, if you inherit money or assets from someone who lived in another state. In Pennsylvania, for instance, the inheritance tax applies to anyone inheriting property from a Pennsylvania resident, even if the inheritor lives in another state. If someone from out of state leaves you something from their estate, check local laws to make sure you don’t end up missing a tax payment you owe.
Kansas has no gift tax. The exemption for the federal gift tax is $18,000 per gift recipient for 2024, up from $17,000 for 2023. If you give one person more than $18,000 in 2024, you must file the gift with the IRS. The excess amount counts against your 2024 lifetime gift tax exemption of $13.61 million, as well as your federal estate tax exemption.
Federal Estate Tax
The federal estate tax may still apply to Kansas residents even though the state does not have its own estate tax. The federal estate tax exemption is $13.61 million for deaths in 2024, up from $12.92 million for deaths in 2023. This exemption is portable for married couples, so a married couple can protect up to $27.22 million for 2024 deaths.
The estate tax is levied on estates that are worth more than the exemption. The progressive tax has a top rate of 40%. A full table of rates is provided below.
This is how it works: Let’s say you die in 2024 and your estate is worth $22.61 million and you are unmarried. You would subtract the $13.61 million exemption, leaving you with a taxable estate of $9 million. This places your estate in the top tax bracket. You’ll owe a $345,800 base payment on the first $1 million and 40% on the remaining $8 million, which equals $3.20 million. Adding that to your base payment makes for a total estate tax burden of $3,545,800.
Federal Estate Tax Rates
| Taxable Estate* | Base Taxes Paid | Marginal Rate | Rate Threshold** |
| $1 – $10,000 | $0 | 18% | $1 |
| $10,000 – $20,000 | $1,800 | 20% | $10,000 |
| $20,000 – $40,000 | $3,800 | 22% | $20,000 |
| $40,000 – $60,000 | $8,200 | 24% | $40,000 |
| $60,000 – $80,000 | $13,000 | 26% | $60,000 |
| $80,000 – $100,000 | $18,200 | 28% | $80,000 |
| $100,000 – $150,000 | $23,800 | 30% | $100,000 |
| $150,000 – $250,000 | $38,800 | 32% | $150,000 |
| $250,000 – $500,000 | $70,800 | 34% | $250,000 |
| $500,000 – $750,000 | $155,800 | 37% | $500,000 |
| $750,000 – $1 million | $248,300 | 39% | $750,000 |
| Over $1 million | $345,800 | 40% | $1 million |
*The taxable estate is the total above the 2024 federal exemption of $13.61 million.
**The rate threshold is the point at which the marginal estate tax rate kicks in.
Overall Kansas Tax Picture
Kansas’ retirement tax picture is moderately friendly for retirees. The state fully taxes withdrawals from retirement accounts, like 401(k) plans, and income from private and public pension plans. The state has a progressive income tax, with rates ranging from 3.10% to 5.25%.
The state has a relatively high property tax rate, with an average effective rate of 1.43%. Home values tend to be low, though, which minimizes tax bills.
Estate Planning Tips
- If you want help planning your estate, a financial advisor could be helpful. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- One common will-writing mistake is to forget to update your will. Things change, whether it’s getting married, having children, getting divorced or inheriting money. Make sure you periodically update your will to take all of these changes into account.
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