Kansas lawmakers pass tax cut package. What does it mean for the average taxpayer?

A new tax cut package is expected to save taxpayers a significant amount of money over the next few years.

Kansas Gov. Laura Kelly signed the bill last week , which passed with bipartisan support. The bill includes significant changes to Kansas tax brackets, personal income tax exemption rules and Social Security benefits, among other changes.

Here’s a quick breakdown of the new law and how it could impact you.

What does the tax cut mean for Kansans?

The new tax law changes the income tax rates to 5.2% and 5.58%.

Under the new rates, if you make $23,000 in taxable income or less, you will be taxed at 5.2%, while if you make more than $23,000 in taxable income, it will be taxed at a higher rate, at 5.58%. Married couples filing together would be taxed the higher rate if they make more than $46,000 a year.

Kansas law currently sets the rates at 3.1%, 5.25% and 5.7%, respectively, with those making $30,000 or more in taxable income taxed the highest rate.

Additionally, the personal income tax exemption is now raised from $2,250 to $9,160, with a new $2,320 tax break for every dependent listed on your tax form.

Seniors will no longer be charged income tax on Social Security benefits, which saves Kansas seniors more than $100 million in state income taxes per year , the Kansas Reflector reports. Kansas was one of only 10 states that had taxed Social Security payments.

Overall, the new tax cut is expected to save Kansas taxpayers $1.2 billion from 2024 to 2027.

While Kansas taxpayers are looking at possible savings, the state is set to lose about $2 billion in tax income over the next five years .