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Tax Year 2026Updated July 13, 2026

Does Kansas Tax Tips in 2026?

As of September 2026, Kansas has not issued official guidance on whether it recognizes the federal OBBBA tips deduction (IRC §224). Kansas does not automatically conform to federal income tax changes – each requires separate legislative action. The Kansas Department of Revenue has not recognized the deduction at the state level, and no pending legislation addresses it. The federal deduction still applies on your federal return regardless, saving up to $25,000 in taxable income.

How Kansas's Tips Tax Treatment Works

Kansas uses a static conformity approach to the Internal Revenue Code. Rather than automatically adopting all federal tax changes as they occur, Kansas conforms to the IRC as of a specific date set by the legislature. When Congress passes new tax legislation like the OBBBA, Kansas must pass its own conformity legislation to adopt those changes at the state level.

This means the OBBBA tips deduction (IRC §224) does not automatically apply to Kansas income tax calculations. The Kansas Department of Revenue cannot recognize the deduction without legislative authorization, and the Kansas Legislature has not acted on this provision as of September 2026.

Kansas has its own standard deduction ($3,605 for single filers) and a two-bracket graduated rate structure: 5.2% on the first $23,000 and 5.58% above $23,000. If Kansas were to conform, tipped workers in the top bracket could save up to 5.58% on their deducted tip income. Without conformity, tips remain fully taxable at Kansas rates.

Federal Tips Deduction Quick Reference

DetailValue
IRC Section§224 (OBBBA)
Maximum deduction$25,000 tips
Deduction typeAbove-the-line (Schedule 1-A)
FICA still applies?Yes (Social Security 6.2% + Medicare 1.45%)
MFS eligible?No (MFJ or Single/HoH only)
Effective datesJan 1, 2025 – Dec 31, 2028
Kansas treatmentDoes not conform

Worked Examples Comparing Federal and Kansas Treatment

Example 1: Restaurant server (single filer, $40,000 income, $15,000 in tips)

Federal return:
Qualified tip income: $15,000
Tips deduction claimed: $15,000 (capped at $25,000)
Estimated federal tax savings: $1,800.00

Kansas return:
Kansas has not enacted legislation conforming to the OBBBA tips deduction. If Kansas were to conform, savings at the 5.58% bracket rate would be approximately $837. Without conformity legislation, the full $15,000 in tips remains subject to Kansas income tax.

Example 2: Bartender (single filer, $70,000 income, $25,000 in tips - federal cap reached)

Federal return:
Qualified tip income: $25,000
Tips deduction claimed: $25,000 (capped at $25,000)
Estimated federal tax savings: $5,500.00

Kansas return:
Kansas has not enacted conformity legislation. If Kansas were to adopt the deduction, savings at the 5.58% top rate would be approximately $1,395. Without legislative action, the full $25,000 in tips remains taxable at Kansas rates.

Kansas Tax System and Tips

Kansas requires legislative action to conform to federal tax changes, making it one of the states where OBBBA conformity depends entirely on the Kansas Legislature. The state uses a two-bracket system with rates of 5.2% and 5.58%, along with its own standard deduction of $3,605 for single filers – separate from the federal standard deduction.

Static conformity: Kansas's approach means that each federal tax change is individually evaluated by the legislature. This gives Kansas more control over its revenue base but can create gaps where federal and state treatment of income differs. The tips deduction is currently in this gap – recognized federally but not at the Kansas level.

Recent tax changes: Kansas recently eliminated its state sales tax on groceries, demonstrating the legislature's willingness to enact tax relief measures. Whether similar momentum will extend to conforming with the federal tips deduction remains to be seen. The hospitality and restaurant industry in Kansas City (Kansas side), Wichita, and other urban areas would be the primary beneficiaries of conformity.

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Frequently Asked Questions

Does Kansas conform to the federal 'no tax on tips' deduction under the OBBBA?
As of September 2026, Kansas has not enacted legislation conforming to the OBBBA tips deduction (IRC §224). Kansas does not automatically conform to federal income tax changes – each change requires separate legislative action by the Kansas Legislature. The Kansas Department of Revenue has not issued guidance recognizing the deduction at the state level.
Why doesn't Kansas automatically adopt federal tax changes?
Kansas uses a 'static conformity' approach, meaning it conforms to the IRC as of a specific date rather than automatically adopting all new federal changes. When Congress passes new tax laws like the OBBBA, Kansas must pass its own legislation to conform to those changes. This gives the Kansas Legislature control over which federal provisions to adopt and which to reject.
What Kansas income tax rate would apply to my tip income?
Kansas has two income tax brackets for single filers: 5.2% on the first $23,000 of taxable income and 5.58% on income above $23,000. Most tipped workers with significant tip income will have at least some tip income taxed at the 5.58% top rate. Kansas also has its own standard deduction of $3,605 for single filers.
Has the Kansas Legislature considered conforming to the OBBBA tips deduction?
As of September 2026, no pending Kansas legislation specifically addresses conformity with the OBBBA tips deduction. The Kansas Legislature has historically been selective about which federal tax provisions to adopt. Any conformity action would likely be considered during the regular legislative session. We will update this page when legislative activity occurs.
Do I still get the federal tips deduction if I live in Kansas?
Yes. The federal tips deduction under IRC §224 applies on your federal Form 1040 regardless of where you live. You can deduct up to $25,000 in qualified tip income from your federal AGI. The open question is only whether Kansas will enact legislation to recognize this deduction on your state return.
How does Kansas's recent grocery tax elimination relate to tip taxation?
Kansas recently eliminated its state sales tax on groceries, which reduced the overall tax burden on Kansas residents. However, the grocery tax elimination is a sales tax change and is entirely separate from the income tax question of whether Kansas will conform to the federal tips deduction. The two provisions address different taxes and require different legislative actions.