How Kansas taxes retirement income
Kansas does not tax Social Security benefits. Pensions and 401(k)/IRA withdrawals are partly taxed (there is an exclusion, then the rest is taxed). Social Security benefits are fully exempt from Kansas income tax for all taxpayers regardless of income, effective tax year 2024 and thereafter (2024 Special Session SB 1 removed the prior $75,000 federal-AGI income cap on the subtraction). Government pensions are fully exempt: KPERS annuities, Kansas Police & Firemen's Retirement, Kansas Teachers' Retirement, other Kansas state/local retirement systems, federal civilian pensions (CSRS/FERS), military retirement pay, and Railroad Retirement benefits are all subtracted on Schedule S, Part A. Private-sector pensions, traditional IRA distributions, and 401(k)/403(b) withdrawals are fully taxable as ordinary income at the state's graduated rates, with no age-based exclusion.
Retirement income tax in Kansas, at a glance
| Income type | Taxed by Kansas? |
|---|---|
| Social Security | No |
| Pensions | Partially (exclusion applies) |
| 401(k) / IRA withdrawals | Yes |
| Estate / inheritance tax | None |
| Avg. property tax rate | 1.21% of home value |
Does Kansas tax Social Security benefits?
No. Kansas does not tax Social Security benefits.
Does Kansas tax pensions and 401(k) or IRA withdrawals?
Partly. Social Security benefits are fully exempt from Kansas income tax for all taxpayers regardless of income, effective tax year 2024 and thereafter (2024 Special Session SB 1 removed the prior $75,000 federal-AGI income cap on the subtraction). Government pensions are fully exempt: KPERS annuities, Kansas Police & Firemen's Retirement, Kansas Teachers' Retirement, other Kansas state/local retirement systems, federal civilian pensions (CSRS/FERS), military retirement pay, and Railroad Retirement benefits are all subtracted on Schedule S, Part A. Private-sector pensions, traditional IRA distributions, and 401(k)/403(b) withdrawals are fully taxable as ordinary income at the state's graduated rates, with no age-based exclusion.
For the mechanics of required withdrawals in retirement, see what is an RMD.
Sources
- Kansas taxation of retirement income (Social Security, pensions, 401(k)/IRA): Kansas Department of Revenue / Taxation.