Kansas does not tax Social Security benefits, and it does not tax military retirement, federal civil service pensions, KPERS annuities, or Railroad Retirement. It does tax private retirement income, including withdrawals from 401(k) plans, traditional IRAs, and private pensions, along with pensions earned from other states’ or local governments. Whatever remains taxable runs through a two-bracket state income tax that tops out at 5.58 percent.
Social Security Is Fully Exempt
Starting with tax year 2024, every dollar of Social Security is exempt from Kansas income tax, no matter how much other income you have. If Social Security is included in your federal adjusted gross income, you subtract the full amount on your Kansas return.1Kansas Department of Revenue. Frequently Asked Questions About Individual Income
Before Senate Bill 1 passed during the 2024 Special Legislative Session, the exemption only applied to taxpayers with federal adjusted gross income of $75,000 or less. That cliff is gone. The full exemption now covers tax year 2024 and every year after.2Kansas Department of Revenue. Notice 24-08 Changes to Individual Income Tax
One boundary to know: Social Security still counts partially toward “household income” for the state’s property tax relief programs. The Homestead refund, for example, includes 50 percent of your Social Security payments when it checks whether you qualify. That’s a property tax program, not the income tax, and the two use different rules.3Kansas Department of Revenue. Frequently Asked Questions About Homestead
Pensions That Kansas Does Not Tax
Kansas exempts a specific list of government-affiliated retirement benefits. If your pension comes from one of these sources, the whole amount gets subtracted on your state return even though it appears on your federal return.
- Military retirement pay from the U.S. Armed Forces.
- Federal civilian retirement, including the Civil Service Retirement System, the Federal Employees Retirement System, and the Federal Civil Service Disability Fund.
- Kansas public retirement systems: KPERS annuities, Kansas Police and Firemen’s Retirement, Kansas Teachers’ Retirement, Kansas Highway Patrol pensions, the Justices and Judges Retirement System, Board of Public Utilities retirement, Board of Regents faculty retirement annuity contracts, Washburn University retirement benefits, and certain first-class-city pensions not covered by KPERS.
- Railroad Retirement of every tier administered by the U.S. Railroad Retirement Board, including Tier I, Tier II, dual vested benefits, and supplemental annuities.
KPERS works a little differently than most retirement plans. Your KPERS contributions come out of your paycheck before Kansas state tax is applied, so you effectively pay Kansas tax on that money while you’re working. In exchange, the benefit you collect in retirement isn’t taxed by Kansas. Federal income tax still applies to KPERS distributions.5KPERS. KPERS and Taxes
Pensions That Kansas Does Tax
Two categories of retirement income don’t qualify for any Kansas exemption and are taxed at regular rates.
The first is private retirement income. Distributions from traditional IRAs, 401(k) plans, 403(b) plans, and private-sector pensions are taxable in Kansas. The rule is straightforward: if the distribution is taxable on your federal Form 1040, it’s taxable on your Kansas Form K-40 unless one of the specific government exemptions applies. Kansas offers no partial exclusion, credit, or age-based break for private retirement income.1Kansas Department of Revenue. Frequently Asked Questions About Individual Income
The second catches people off guard. Pensions from other states’ governments and from local governments outside Kansas are not exempt. If you spent a career with the State of California and moved to Kansas in retirement, that California pension is taxable on your Kansas return. Same story for a municipal police pension earned in Illinois. The exemption list covers federal pensions, Kansas public retirement systems, and railroad retirement. Everything else on the government side is taxable.4Kansas.gov. Schedule S – Part A Subtractions
The Rates That Apply to Taxable Income
Kansas moved to a two-bracket income tax starting with tax year 2024, and the same structure applies going forward.
- Single, head of household, or married filing separately: 5.2 percent on taxable income up to $23,000; 5.58 percent above $23,000.
- Married filing jointly: 5.2 percent on taxable income up to $46,000; 5.58 percent above $46,000.
These rates apply after you subtract all exempt retirement benefits, your standard deduction, and your personal exemption. A married couple whose only income is $30,000 in Social Security and a $24,000 KPERS annuity would have zero Kansas taxable income, because both sources come off the top.
Extra Deductions for Filers 65 and Older
Once exempt retirement income is subtracted, the standard deduction and personal exemption trim the taxable figure further. Filers who are 65 or older get more standard deduction than younger filers. The amounts below are for the 2025 tax year, the most recently published figures.6Kansas Department of Revenue. 2025 Individual Income Tax Booklet
Standard Deduction
- Single: $3,605 base, plus $850 if you’re 65 or older, plus another $850 if you’re blind.
- Married filing jointly: $8,240 base, plus $700 for each spouse who is 65 or older, plus $700 for each spouse who is blind.
- Head of household: $6,180 base, plus $850 if you’re 65 or older.
- Married filing separately: $4,120 base, plus $700 if you’re 65 or older.
A married couple who are both 65 receive a total standard deduction of $9,640.
Personal Exemption Allowance
Kansas adds a personal exemption on top of the standard deduction. For married filing jointly it’s $18,320. For single, head of household, or married filing separately it’s $9,160. An additional $2,320 is available for each dependent and for qualified disabled veterans.
Combined, a single filer 65 or older with no dependents can shelter $13,615 of taxable income before owing any Kansas tax. A married couple both 65 or older can shelter $27,960.
Claiming the Exemptions on Your Return
Retirement subtractions go on Schedule S, the supplemental schedule that accompanies Form K-40. Schedule S has two sections, additions and subtractions. Exempt retirement income goes in the subtractions section. Enter the amount that was included in your federal adjusted gross income.4Kansas.gov. Schedule S – Part A Subtractions
Social Security gets its own line on Schedule S, separate from other exempt retirement benefits. Don’t combine Social Security with military, KPERS, or railroad income on a single line. The total subtractions flow back to Form K-40 and reduce your Kansas adjusted gross income.
The filing deadline for the 2025 Kansas return is April 15, 2026. Kansas has no state extension form. If you need more time, attach a copy of your federal Form 4868 to your completed K-40 when you file. An extension gives more time to file, not to pay. Interest accrues from the original due date on any balance owed, though no penalty applies if you’ve paid at least 90 percent of your liability by April 15.6Kansas Department of Revenue. 2025 Individual Income Tax Booklet
No Estate or Inheritance Tax
Kansas doesn’t impose a state estate tax or an inheritance tax. When a Kansas resident dies, beneficiaries owe nothing to the state on what they inherit. Federal estate tax still applies to estates that exceed the federal exemption, but there’s no state-level layer on top.