Property Taxes: The Basics
Megan Leopold | October 20, 2026
In recent years, property taxes in Kansas have received a lot of attention from the Legislature and constituents alike. As more families feel the burden of rising taxes on their homes, lawmakers have spoken at length about the need to lessen the financial strain.
As this issue is almost certainly to be a topic for the Legislature to try to address in the coming legislative session, Kansans should learn more about how property taxes work in Kansas – and lawmakers’ options to address rising costs.
What Are Property Taxes?
Property taxes are a yearly fee paid to counties based on the real estate or property a person owns. Along with income and sales taxes, property tax is widely considered one of the three major revenue sources that support a stable and balanced state economy.
There are a few key characteristics that make property taxes unique. Unlike income and sales taxes, which are determined by taxpayer actions, property tax is based on property value, which is out of the payer’s control. Additionally, property owners who do not have a mortgage must pay their property taxes in one or two lump sums.
The primary way property taxes differ from income and sales taxes is that, while the latter are large contributors to the state budget, property taxes generally stay in local communities. As the largest local revenue source in Kansas, property taxes are paid to local governments, which use these funds for schools, roads, parks, fire and police protection, and other community-level programs.
How Are Property Taxes Determined?
Property taxes have received more attention over the past several years as property values have seen a significant increase. The tax owed on a specific property is influenced by several factors, including its "fair market value," or the price at which a property would sell under normal conditions. Other factors include the assessment rate and the mill levy.
In Kansas, residential properties have an assessment rate of 11.5% while commercial properties have an assessment rate of 25.0%. This means that commercial properties have a higher taxable percentage than residential properties. Assessment rates are set in the Kansas Constitution and can only be changed through a constitutional amendment.
Example: If a residential property’s market value is $100,000, the amount the property owner can be taxed on is $11,500, also called the “assessed value.”
One mill is $1 for every $1,000 of assessed value. The total mill levy consists of both a statewide portion and a local portion.
The statewide mill levy is set in Kansas law at 20 mills and is put toward the state's funding obligation for K-12 education. The local portion is the sum of several mill levies. Each is independently set by the various taxing jurisdictions that overlap the property. These include cities, counties, school districts, and other special districts. A county clerk combines all levies applicable to each property to establish the mill levy that will appear on tax bills.
These various factors influence property tax amounts independently. For example, a property tax will increase if the property's value increases, but the mill levy stays the same. On the other hand, it will also increase if the property's value stays stable, but the mill levy or assessment rate increases.
Where Do Property Taxes Go?
Because property taxes are based on the tax jurisdictions overlapping each individual property, each property has different allocations. In general, however, most property taxes are allocated by counties and cities to fund roads, parks, fire protection, police protection, and other services. Below is a chart showing how the mill levy was distributed in Shawnee County in 2026.
Recent Legislation
Though lawmakers still have some competing ideas to lessen property taxes, the last couple of sessions have seen two bills pass that reduce the tax burden on homeowners.
- 2024 SB 1. Prior to the passage of SB 1, the first $20,000 in appraised value of each home was exempt from the statewide school mill levy. SB 1 raised that amount to $75,000, meaning the first $75,000 of each property is subtracted from the home’s value when calculating the amount owed for the statewide mill levy. This does not apply to the calculation of any local mill levies.
- 2025 SB 35. SB 35 eliminated two statewide mill levies — 1.0 mills for state educational buildings and 0.5 mills for state institutions buildings — and replaced the revenue to these funds with a transfer from the State General Fund. The total amount of state funds needed to replace this lost revenue in FY 2027 is expected to be around $81 million and will be adjusted each year based on property value trends.
During the 2026 session, legislators debated competing plans aimed at decreasing property taxes.
Several Senate property tax plans would have attempted to cap the amount of property taxes that could be levied. For instance, SCR 1616 (dealing with assessment caps) and the Senate’s amended version of HCR 5008 (allowing the Legislature to limit property valuations) would have placed constitutional amendments on voters’ ballots to approve these measures, but both failed to receive a two-thirds majority approval from the House.
The failed House plans in 2026, however, would have taken a different approach, including HB 2043 (capping the growth of local property taxes at 3%) and HB 2745 (allowing for local protest petitions if local governments raised property taxes above a certain percentage). Both were vetoed by the Governor, and neither were even attempted to be overridden.
Legislators indicate they are committed to addressing rising property taxes in 2027, but they may have their work set out for them. As a primary revenue source for local governments and public schools, finding a compromise to lower property taxes can present both fiscal and political challenges.
Refunds and Exemptions
As is typical with taxes, Kansas law provides more than 100 unique tax exemptions for property taxes. While some reduce the assessed value, others remove property tax entirely. Examples include exemptions for government, religious, and educational properties, as well as those designed to expand economic development.
Kansas also offers three refund programs designed to help specific homeowners. These refunds are limited to property owners and are not available to renters.
- Homestead Property Tax Refund. A rebate of up to $700 of the property taxes paid for a resident’s homestead, available to those who meet certain financial and demographic criteria.
- Kansas Property Tax Relief for Low Income Senior (SAFESR). A refund of 75% of taxes paid on a principal residence for Kansans above the age of 65 who meet financial requirements.
- Kansas Property Tax Relief for Seniors and Disabled Veterans. A refund of property tax for seniors, disabled veterans (or a surviving spouse), or person 65 years of age or older who meet financial requirements.
The Work Continues in 2027
Legislative discussions about property tax are unique in that property tax cuts have a much less direct impact on the state budget than cuts to income or sales taxes. The majority of the mill levy is determined by local taxing authorities — not the Kansas Legislature — so as property taxes are cut or capped, it is local entities that will be feeling the lost revenue and the need to make tough choices on what their budgets can handle.
Many Kansas families would breathe a sigh of relief if property taxes were lowered. However, as legislators grapple with this complex issue, the relief it brings to individual Kansans must balance with the resulting impacts that come with a loss in revenue for local services. When lawmakers return in January, we will continue to monitor the conversation about property taxes and evaluate plans to see if they truly benefit Kansas children and families without putting communities at risk.
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