Wichita among most tax-friendly retirement spots in Kansas, study says
If you’re looking for favorable tax treatment during your post-working years, Sedgwick County might be the place for you.
A new study by financial technology company SmartAsset found Wichita, Park City, Valley Center and Bel Aire among the Top 10 most tax-friendly Kansas communities for retirees.
Wichita was the second most tax-friendly retirement spot overall, the study found. Park City, Valley Center and Bel Aire ranked fourth, fifth and sixth in the state for overall tax friendliness.
Merriam, an 11,000-person city in Johnson County, topped the list.
Hays, Lansing, Overland Park, Rowland Park and Ulysses also were named tax-friendly retirement towns.
The study looked at how tax policies in towns across Kansas would effect a person with an annual retirement income of $50,000. Property tax, how pensions and retirement funds are taxed, fuel costs, sales tax and whether Social Security benefits are taxed were taken into account.
Nationwide, Kansas falls into the list of moderately tax-friendly states for retirees, which means they offer smaller deductions on some or all forms of retirement income.
Here, any senior with an adjusted gross income less than $75,000 won’t pay taxes on their Social Security income and public pension payouts aren’t taxable, according to SmartAsset. But withdraws from other retirement accounts, like 401(k)s and private pensions, are fully taxed, SmartAsset said.
SmartAsset also notes that Kansas’ sales tax and average effective property tax rates are among the highest in the country, although some people who meet income requirements can recoup some of those costs on their tax returns. It’s also one of few states where groceries are taxed.
Nationwide, 10 cities in Alaska led the list of most tax-friendly retirement spots in the SmartAsset study.
Kalifornsky, which is about a three-hour drive south of Anchorage, was at the top.
Amy Renee Leiker: 316-268-6644, @amyreneeleiker
Top 10 most tax-friendly Kansas retirement spots
Rank | City | Income Tax Paid | Property Tax Rate | Sales Tax Paid | Fuel Tax Paid | Social Security Taxed? | Retirement Tax Friendliness Index (out of 100) |
1 | Merriam | $6,230 | 1.31% | $996 | $277 | Yes | 40.32 |
2 | Wichita | $6,230 | 1.26% | $1,149 | $216 | Yes | 39.22 |
3 | Roeland Park | $6,230 | 1.48% | $996 | $284 | Yes | 38.08 |
4 | Ulysses | $6,230 | 1.21% | $1,302 | $193 | Yes | 37.34 |
5 | Park City | $6,230 | 1.69% | $996 | $230 | Yes | 36.82 |
6 | Valley Center | $6,230 | 1.41% | $1,149 | $267 | Yes | 36.33 |
7 | Bel Aire | $6,230 | 1.68% | $996 | $262 | Yes | 36.23 |
8 | Lansing | $6,230 | 1.38% | $1,302 | $175 | Yes | 35.65 |
9 | Overland Park | $6,230 | 1.19% | $1,356 | $247 | Yes | 35.28 |
10 | Hays | $6,230 | 1.19% | $1,340 | $265 | Yes | 35.11 |
This story was originally published April 27, 2017 at 11:52 AM with the headline "Wichita among most tax-friendly retirement spots in Kansas, study says."