How is Kansas for retirement?

Kansas, located in the heartland of America, has become a popular retirement destination for retirees seeking a blend of rural and urban flavors. Apart from being the breadbasket of the nation, Kansas offers a relaxed retirement lifestyle and a welcoming community. Let’s delve into the various aspects to consider if you plan to retire in Kansas.

Kansas is a good state for retirement due to its low cost of living, vibrant cultural scene, good weather, and moderate tax system. The state exempts Social Security incomes from state income taxes for individuals with an adjusted gross income (AGI) of $75,000 or less. If your AGI is above $75,000, you will pay state income taxes on Social Security benefits. Public pensions are fully exempt from Kansas state income taxes, but private pensions and retirement plan distributions are subject to state income taxes.

Is Kansas tax-friendly for retirees?

Kansas has a moderately friendly income tax system. The state exempts Social Security income from state income taxes for individuals with Adjusted Gross Income (AGI) of $75,000 or less. However, if your AGI is above $75,000, you will pay state income taxes on your Social Security income. Public pensions from federal, state, and local governments are fully exempt from state income taxes.

If you have other retirement incomes such as private pensions and retirement plan distributions from 401(k) or IRA, you will pay full Kansas state income taxes on these incomes. The state income taxes range from 3.1% to 5.7% depending on your income and filing status.

For example, if you are a single filer and your total annual income (excluding Social Security and public pensions) is above $30,000, you will pay a state income tax rate of 5.7%. If you are married and filing jointly, and your annual income exceeds $60,000, you will pay a state income tax rate of 5.7% on that income.

How much are sales taxes in Kansas?

Kansas has one of the highest sales tax rates in the United States, which can affect your day-to-day expenses. The state has a statewide sales tax rate of 6.5%, while the local governments collect an additional sales tax of up to 4.23%. The total state and local sales tax averages about 8.49%.

There are no sales tax exemptions on groceries. Effective January 1, 2023, the sales tax rate on groceries dropped from 6.5% to 4%, and it will drop further to 2% in 2024. You will still pay local sales taxes depending on the county and city you are shopping in.

How much are property taxes in Kansas?

The average effective property tax rate in Kansas is 1.33%, which is above the national average. However, with the low property values in Kansas, property taxes are generally low. The average Kansas homeowner pays about $2,445 in property taxes.

Kansas homeowners who use their property as their primary residence may qualify for the homestead refund program. This refund is based on the property taxes paid on a property, and it offers a maximum refund of $700. To qualify for the homestead refund, you must live in Kansas the entire year, be age 55 or older as of January 1 of the tax year, and your total household income (including Social Security) must be $37,750 or less.

Kansas also offers the Kansas Property Tax Relief for Low-Income Seniors (SAFESR). To be eligible for SAFESR, you must be age 65 or older, and your household income must be $22,000 or less. This refund program refunds up to 75% of the property tax levy. If you are eligible for both Kansas homestead exemption and SAFESR, you can only receive either of the two, but not both.

Pros of retiring in Kansas

Low cost of living

Kansas has an affordable cost of living, and you will pay less for groceries, utilities, healthcare, gas, and housing. The rural areas have a fairly low cost of living, and you can buy fresh farm produce at a fraction of what you would spend in bigger cities. However, you will spend more in urban areas like Topeka and Kansas City than in rural Kansas, but still significantly less than in bigger cities like New York and Chicago.

Four-season weather

One of the reasons why seniors choose to retire in Kansas is the four-season climate. Kansas experiences summer, winter, fall, and spring, allowing residents to enjoy the unique characteristics of each season. During the summer, Kansas experiences warm and wet weather, with plenty of sunshine while during winter, the weather can be cold and snowy.

Country club culture

The country club culture has been passed on from generation to generation, and it provides a good environment for seniors to socialize and make new friends. You can find country clubs that offer various amenities including tennis courts, golf courses, and fitness centers. You can sign up for a country club membership and enjoy the various facilities they offer.

Easy commute

If you live outside the major metropolitan areas, you should expect minimal traffic on the highways. If you retire in an urban area like Kansas City, you can move from the suburbs to the downtown area in less than 20 minutes. Compared to the traffic situation in big cities like Los Angeles, you will find the commute time relatively short.

Cons of retiring in Kansas

Severe weather

Despite the favorable weather most of the year, Kansas is prone to extreme weather. The state sits in a tornado alley, and it faces a high risk of tornadoes and severe thunderstorms.

The state records up to 100 severe storms in a year, and they mostly occur in May, June, and November. Additionally, the southern parts of the state tend to be extremely hot during the summer, and the heat wave index can soar to life-threatening levels.

Limited public transportation

While the metropolitan areas have public bus transit systems, the rest of the state has limited public transportation. There are no bus routes, trains, subways, or taxis outside the metro area. If you plan to rely on public transit options when you retire in Kansas, you should consider settling in the big cities, or have a private car to move across the cities and rural areas. 

Flat landscape

Kansas is landlocked, and this means there are no sandy beaches or mountains. You should expect to find rolling plains, unforested grasslands, and prairie land. If you want to retire in a state with mountains, ocean coastline, beaches, and forests, you should consider retiring in states like California, New Jersey, Delaware, or South Carolina.

Most of the state is rural

If you are looking for a relaxed retirement in the countryside, rural living isn't a bad thing. But, it can be a dealbreaker if you want to retire in a state with many urban centers and easy access to big city amenities like shopping centers, fine dining options, bars, theatres, and art galleries. If you retire in rural Kansas, you will have to travel long distances to find entertainment options, fine dining, nightlife, festivals, or even airports.

Best places to retire in Kansas

Topeka

Topeka is the capital city of Kansas, and it offers a mix of big city amenities and a thriving arts and cultural scene. It has good public transportation options, and you can move around the metro area with ease. The city has a low cost of living, excellent healthcare facilities, and affordable housing options. You can visit the downtown area to explore art galleries, museums, performing art centers, and zoos.

Kansas City

If you want to retire in a cosmopolitan town with a strong economy, Kansas City is a good choice. It boasts a range of dining options, shopping opportunities, and entertainment. You will also find numerous art galleries, museums, and performing art venues. Some of the key places you can visit in Kansas City include the Nelson-Atkins Museum of Art, National WWI Museums and Memorial, and the Kauffman Center for Performing Arts.

Lawrence

Lawrence has a youthful atmosphere, thanks to students from the University of Kansas and Haskell Indian Nations University. It has a friendly, culturally diverse, and highly intelligent population, with a vibrant sports and arts culture. The downtown area offers multiple shopping opportunities, fine dining options, and entertainment options.

Manhattan

Manhattan hosts Kansas State University, and it is a good place to retire for seniors seeking college-town vibes. It has a vibrant and youthful population, and you can find numerous cultural events, lectures, and art performances. The city has a strong economy, and you can find part-time jobs in retirement.