Do expats from Kansas still need to pay state taxes?

Do expats from Kansas still need to pay state taxes?

Understanding your state tax obligations is important when you move abroad. This article aims to clarify whether expats from Kansas still need to pay state taxes.


Yes, expats from Kansas may still need to pay state taxes depending on their residency status. 

If Kansas remains your domicile and you haven't established residency elsewhere, you are still considered a Kansas resident for tax purposes and must file state taxes on your worldwide income.

To avoid this, sever all ties with Kansas, such as selling property, transferring your driver's license, registering to vote in your new state, and becoming domiciled in the new state. 

Understanding Kansas's tax residency rules

Kansas classifies individuals into three residency statuses for tax purposes: Resident, Nonresident, and Part-Year Resident.


Definition: A resident is someone whose permanent home (domicile) is in Kansas. This means Kansas is considered your permanent home, the place you intend to return to after any periods of absence.

Taxation: Residents are taxed on their worldwide income, which includes income from all sources, both within and outside the United States  .


Definition: A nonresident is an individual who does not have a domicile or significant presence in Kansas. If you do not live in Kansas during the tax year and do not maintain a permanent home there, you are considered a nonresident.

Taxation: Nonresidents are only taxed on income that originates from Kansas sources. This includes wages earned while working in Kansas, business income from operations within the state, and rental or sale income from property located in Kansas.

Part-year resident

Definition: A part-year resident is someone who moved to or from Kansas during the tax year. If you changed your permanent home from Kansas to another location, or vice versa, during the year, you fall into this category.

Taxation: Part-year residents are taxed on all income earned while they were residents of Kansas and only on Kansas-sourced income during the periods they were nonresidents. This means you must carefully allocate income based on your residency status throughout the year  .

Domicile and its implications

Your domicile is your permanent home—the place you intend to return to after absences. Domicile plays a crucial role in determining your tax obligations.

If Kansas was your domicile and you haven't established a new one in another state or country, you will still be considered a Kansas resident for tax purposes.

Kansas taxes individuals on their worldwide income if they are domiciled in the state, regardless of whether they are physically residing there.

What constitutes Kansas-sourced income?

Understanding what constitutes Kansas-sourced income is essential for nonresidents and part-year residents to accurately determine your tax obligations.

Kansas-sourced income refers to any income derived from activities or assets located within the state. 

Here are some key categories to consider:

  • Wages and Salaries: Money earned for services performed in Kansas.
  • Business Income: Income from business activities conducted in Kansas.
  • Real Estate: Rental income from property located in Kansas.
  • Capital Gains: Profits from the sale of real estate or tangible property in Kansas.

Why should Kansas expats move domicile to a state with zero state income tax?

State income tax savings

For retirees and high-income individuals from Kansas, moving to states without income taxes such as Florida, Texas, or Nevada can offer significant financial advantages. Without the burden of Kansas state income taxes, you can keep more of your earnings, allowing for greater investment opportunities or an enhanced lifestyle.

Inheritance tax benefits

States like Florida and Texas not only lack a state income tax but also do not impose state estate taxes. This can considerably reduce the tax burden on your estate, ensuring that more wealth is passed on to your heirs. This is especially advantageous for individuals from Kansas with substantial assets who wish to maximize the inheritance for their beneficiaries.

Flexibility and mobility

Relocating your domicile from Kansas to a no-income-tax state enhances your flexibility and mobility, allowing you to travel and live in various locations without worrying about high state tax bills. This is ideal for high-income earners from Kansas with business interests in multiple states or countries and for retirees who desire to spend their later years exploring new places.

Moreover, the absence of state income taxes simplifies your tax filing process. You will only need to file federal taxes, reducing the complexity and potential for errors in your tax returns, making financial management more straightforward.

Florida Residency information

How to leave Kansas tax residency?

When moving abroad or to another state, changing your Kansas residency status requires deliberate steps to ensure a clear transition.

Here’s a step-by-step guide to help you navigate this process:

1) Establish new residency

  • Secure a residential address in the new location: This is essential to establish your intent to live there permanently.
  • File a Declaration of Domicile if required: Some states, like Florida, require a formal declaration to confirm your new domicile.

Reference guides may provide additional help for specific states:

Best domiciles for expats from Kansas

2) Transfer IDs and registrations 

Update driver’s license and vehicle registration. Visit your new state’s DMV to update these documents to reflect your new address.

3) Register to vote 

Register to vote in your new location. Voter registration is a significant factor in demonstrating your commitment to your new domicile.

4) Update documents

Change address on identification cards, medical records, insurance policies, and financial documents. Ensure all your personal documents reflect your new address to avoid issues and provide proof of your move.

5) Notify your employer

Inform your employer about your residency change. This is particularly important if your move affects how your income is taxed, potentially shifting some of it away from being classified as "Kansas-sourced."

6) Notify IRS 

Inform the IRS of your address change using Form 8822. Extend this notification to all personal and professional entities.

7) Keep records

Maintain detailed records of all your relocation actions, including receipts, bills, and legal documents. These States may conduct residency audits to ensure your move is genuine. Keep detailed evidence like utility bills, voter registration, and proof of domicile  .

8) Anticipate an audit

States may conduct residency audits to ensure your move is genuine.

Tax benefits and exemptions for Kansas expats

Living abroad as an expat from Kansas comes with various federal tax benefits and exemptions that can help reduce your overall tax burden. Here are some of the key federal tax advantages available:

Foreign Earned Income Exclusion (FEIE)

The FEIE allows U.S. taxpayers living abroad to exclude a certain amount of their foreign-earned income from U.S. federal income tax.

For the tax year 2024, this exclusion amount is up to $126,500.

To qualify, you must pass either:

  • Bona Fide Residency Test: You qualify if you are a resident of a foreign country for an uninterrupted period that includes an entire tax year.
  • Physical Presence Test: You qualify if you are physically present in a foreign country for at least 330 full days during a 12-month period.

FEIE Guide

Foreign Tax Credit (FTC)

The FTC helps you avoid double taxation by allowing you to take credit for foreign taxes paid on income that is also subject to U.S. federal tax.

This credit can significantly reduce your U.S. tax liability, especially if you reside in a country with high tax rates.

FTC Guide

Foreign Housing Exclusion (FHE)

The FHE allows you to exclude certain housing expenses from your federal taxable income, including rent, utilities (excluding telephone), and other reasonable expenses related to housing abroad. The amount you can exclude is limited to a base amount plus housing expenses exceeding 16% of the FEIE limit.

FHE Guide

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Filing Kansas state taxes from abroad

To file your taxes, you may need specific forms such as:

  • Form K-40: Kansas Individual Income Tax Return.
  • Schedule S: Individual Income Tax Supplemental Schedule.
  • Form K-40V: Payment Voucher for any taxes owed.

Deadlines and Extensions

General Deadline: The deadline for filing Kansas state taxes is April 15, which aligns with the federal tax deadline.

Automatic Extension: If you are living outside the U.S. on April 15, you may receive an automatic two-month extension to file your return and pay any amount due without requesting an extension, extending the deadline to June 15.

Additional Extension: You can request a further extension, typically extending the deadline to October 15. However, this extension is for filing your return only, not for paying any taxes owed. Interest on any unpaid taxes will accrue from the original April 15 deadline.

Consequences of non-compliance with Kansas state tax laws

Penalties for late filing and payment

If you fail to file your Kansas state tax return on time, you may face significant penalties. Kansas imposes a late filing penalty of 1% per month on the unpaid tax, up to a maximum of 24% of the unpaid amount. Additionally, there is a late payment penalty of 0.5% per month on the unpaid tax until the full amount is paid.

Underpayment penalties

Underpayment penalties apply if you do not pay enough taxes throughout the year, either through withholding or estimated tax payments. The penalty is generally calculated based on the amount of the underpayment for the period it was underpaid. The Kansas Department of Revenue uses an interest rate to calculate this penalty, which is determined annually.

Non-compliance with tax laws can also result in additional penalties, such as:

  • Accuracy-Related Penalties: If you understate your tax liability by a significant amount, you could face an accuracy-related penalty of 20% of the understated tax. This penalty can increase to 40% in cases of gross valuation misstatements or undisclosed foreign assets.

Criminal Penalties: Severe cases of tax evasion can lead to criminal charges, including fines and imprisonment.