Kansas Senate Bill SB311

Kansas 2025-2026 Regular Session

• Introduced: 1/12/26
• Refer: 1/13/26

Caption

Eliminating state income tax on certain qualified overtime compensation.

Summary

SB 311 amends Kansas income tax law to create a subtraction modification for certain qualified overtime compensation. Beginning with tax years after December 31, 2025, taxpayers would be allowed to subtract 100% of qualified overtime compensation from federal adjusted gross income when calculating Kansas adjusted gross income, effectively exempting that overtime pay from state income tax. The bill is framed as an income-tax relief measure focused specifically on overtime earnings. The bill accomplishes this by revising K.S.A. 79-32,117, the statute that defines Kansas adjusted gross income and lists the additions and subtractions used to compute state taxable income. SB 311 adds a new subtraction item for qualified overtime compensation while leaving the rest of the Kansas tax modification structure intact. It also repeals the existing version of the statute and replaces it with the amended version, so the change would be incorporated directly into the state income tax code. The bill’s impact would be limited to individual income taxpayers who receive qualifying overtime pay. For those taxpayers, the overtime amount would no longer be included in Kansas taxable income, reducing state income tax liability on that portion of wages. The measure does not alter federal tax law, employer payroll practices, or the taxation of regular wages; it only changes how Kansas computes adjusted gross income for state tax purposes. Based on the available context, the general sentiment appears supportive or at least favorable, since the bill’s caption and structure present it as a targeted tax cut for workers earning overtime. No committee transcripts or recorded votes were provided, so there is no documented evidence of opposition or debate in the supplied materials. The bill’s narrow focus suggests it is intended as a worker-relief or pro-labor tax policy rather than a broad tax overhaul. The main point of contention, if any, would likely center on revenue effects and whether exempting overtime pay from state income tax is the best way to provide relief. Potential concerns could include the fiscal cost to the state, whether the benefit is targeted to workers who need it most, and how “qualified overtime compensation” is defined and administered. However, no specific objections, amendments, or vote splits are included in the provided record.

Impact

SB 311 would amend Kansas adjusted gross income law in K.S.A. 79-32,117 by adding a new subtraction modification for qualified overtime compensation, beginning with tax years after December 31, 2025. This would reduce Kansas taxable income for eligible taxpayers and lower state income tax collections on overtime wages, while leaving federal tax treatment unchanged. The bill would directly affect individual taxpayers who earn qualifying overtime pay and the Department of Revenue’s administration of the state income tax code.

Sentiment

The available materials suggest generally positive sentiment toward the bill, with the caption and text indicating a policy goal of eliminating state income tax on certain overtime compensation. No committee discussion or voting history was provided, so there is no recorded evidence of opposition, amendments, or divided votes in the supplied context. In the absence of contrary information, the bill appears to be presented as a straightforward tax relief measure.

Contention

No specific contention is documented in the provided transcripts or votes. The likely areas of debate would be fiscal impact on state revenues, whether the tax break should apply only to overtime rather than broader wage income, and how the state will define and verify “qualified overtime compensation” for compliance purposes. Any opposition would likely come from those concerned about revenue loss or the policy’s distributional effects, while supporters would likely emphasize worker take-home pay and incentives for overtime work.