Kansas is projected to experience a $72 million decrease in tax revenue for 2025 due to a new tax cut law passed earlier this year. The state’s budget officials and economists have released the latest revenue projections, estimating that Kansas will bring in $9.7 billion in tax revenue next year—a 4% decrease from the $10.1 billion collected in 2024.
Governor Laura Kelly signed a significant tax cut law in July, which reduces taxes by about $1.2 billion over three years. Although revenues are expected to decline in 2025, they are forecasted to rise slightly to over $9.8 billion in 2026.
State analysts noted several risks to revenue, including inflation, global events, commodity price fluctuations, and ongoing drought conditions that have affected much of the state. Additionally, financial difficulties in agriculture and concerns surrounding Boeing’s acquisition of Spirit AeroSystems are factors that could further impact the economy.
Despite the revenue dip, the state is projected to have a budget surplus of approximately $1.5 billion by 2026.
