2. Kansas: Eliminating the Social Security Cliff
Kansas took decisive action during a 2024 special legislative session by passing Senate Bill 1. This historic measure completely eliminated the state’s punitive tax cliff on Social Security earnings.
Under previous rules, retirees earning even one dollar over $75,000 in federal adjusted gross income faced taxes on 100 percent of their benefits. That sudden tax liability created an unfair penalty for disciplined savers.
Senate Bill 1 eliminated this cliff entirely, making 100 percent of Social Security benefits exempt from state income tax. This policy change delivers an estimated $152 million in annual savings to Kansas retirees.
Lawmakers also expanded property tax relief within the same legislative reform package. The residential property tax exemption from the statewide uniform school finance levy increased from $40,000 to $75,000.
These combined changes allow Sunflower State retirees to protect both their home equity and their guaranteed income streams. You can earn supplemental income without fearing sudden state tax spikes.
