Does Kansas Tax Social Security and Retirement Income?

Kansas no longer taxes Social Security at any income

For taxable years beginning after December 31, 2023, Kansas subtracts all Social Security benefits that are included in federal adjusted gross income. For 2008 through 2023 the subtraction was allowed only when federal AGI was $75,000 or less, whatever the filing status, which meant one dollar of extra income could make a household’s entire taxable benefit subject to Kansas tax. That ceiling no longer exists. (K.S.A. 79-32,117, Kansas adjusted gross income; modifications (Social Security and federal retirement benefits))

On the return, the federally taxed portion of benefits is entered on Schedule S, line A10, and reduces federal AGI to Kansas adjusted gross income on Form K-40. Railroad retirement benefits, tier I and tier II, are subtracted on line A14. A full-year resident must file a Kansas return if required to file a federal one, even when the subtractions leave no Kansas tax. (Kansas Department of Revenue, 2025 Individual Income Tax booklet (Form K-40 and Schedule S instructions))

The federal government is a separate matter. Up to 85% of a benefit can be taxed on a federal return once other income passes fixed thresholds, wherever you live. Our taxable Social Security calculator shows how much of yours is counted.

Kansas public, federal and military pensions are exempt; private pensions are taxed

Kansas exempts retirement benefits by naming the plans. Schedule S, line A14, takes the federally taxed amount received from the Kansas Public Employees’ Retirement System (KPERS), the Kansas Police and Firemen’s Retirement System, Kansas teachers’ retirement annuities, Highway Patrol pensions, the judges’ retirement system, Board of Regents annuity contracts, Washburn University’s plan, the Board of Public Utilities, certain first-class city pensions and the Overland Park police and fire plans. (Kansas Department of Revenue, 2025 Individual Income Tax booklet (Form K-40 and Schedule S instructions))

Federal retirement is exempt as well. The statute subtracts annuities from the federal civil service retirement and disability fund and other retirement benefits, in whatever form, earned through employment by the federal government or service in the armed forces. That covers military retired pay with no age or dollar limit. (K.S.A. 79-32,117, Kansas adjusted gross income; modifications (Social Security and federal retirement benefits))

A pension from a private employer has no line on Schedule S. It is part of federal AGI and is taxed at the ordinary rates, as is a public pension from another state, since the exempt list is limited to Kansas and federal plans. A retiree with a $40,000 private pension and enough other income to be in the top bracket pays $2,232 of Kansas tax on it. (Kansas Department of Revenue, 2025 Individual Income Tax booklet (Form K-40 and Schedule S instructions))

IRA and 401(k) withdrawals and Roth conversions are fully taxed

Kansas starts from federal adjusted gross income and allows only the subtractions listed on Schedule S. Nothing on that list covers distributions from a traditional IRA or from a private employer’s 401(k) or 403(b), so the whole federally taxable withdrawal is Kansas income. There is no partial exclusion and no age at which one begins. Our third example household draws $150,000 from IRAs and pays Kansas tax on all of it. (Kansas Department of Revenue, 2025 Individual Income Tax booklet (Form K-40 and Schedule S instructions))

A Roth conversion is treated the same way: the converted amount is in federal AGI and no Kansas subtraction applies. At the 5.58% top rate a $100,000 conversion costs $5,580. Since 2024 a conversion no longer has any effect on the Social Security subtraction, which under the earlier law was lost entirely once federal AGI passed $75,000. (K.S.A. 79-32,117, Kansas adjusted gross income; modifications (Social Security and federal retirement benefits))

The federal Thrift Savings Plan is the exception among account-based plans. The line A14 instructions list retirement benefits from federal employment or armed forces service “including Thrift Savings Plans”, so those distributions are subtracted. Amounts withdrawn from a retirement account that began as a KPERS lump-sum payment rolled over at retirement are subtracted on line A11. (Kansas Department of Revenue, 2025 Individual Income Tax booklet (Form K-40 and Schedule S instructions))

To size a conversion against federal brackets and Medicare surcharges, see the Roth conversion calculator; for required withdrawals, the RMD calculator.

Interest, dividends and capital gains are taxed as ordinary income

Kansas has one rate schedule for all taxable income. Capital gains, qualified dividends and interest that are in federal AGI are taxed at 5.2% and 5.58% like a pension or wages, with no lower rate for long-term gains. A $200,000 gain realized by a household already in the top bracket adds $11,160 of Kansas tax. (K.S.A. 79-32,110, Tax imposed; schedules of tax rates)

Interest from U.S. government obligations, including Treasury bills and savings bonds, is subtracted on Schedule S, line A12; interest from Fannie Mae, Ginnie Mae and Freddie Mac securities does not qualify. Municipal bond interest that is exempt federally is added back on line A1, except interest on Kansas state and local obligations issued after December 31, 1987 and a few earlier Kansas issues. In a fund holding bonds of several states only the Kansas portion is exempt. (Kansas Department of Revenue, 2025 Individual Income Tax booklet (Form K-40 and Schedule S instructions))

Separately from the state income tax, some Kansas counties, cities and townships levy a local intangibles tax on gross earnings from savings accounts, stocks, bonds and notes. The 2026 Form 200 lists 46 counties where it applies somewhere; the county rate is either 0% or 0.75%, and most listed cities and townships charge 2.25%. Capital gains are not reported, and earnings inside IRAs and other qualified retirement plans, federal obligations and Kansas municipal bonds are exempt. The return goes to the county clerk by April 15. (Kansas Department of Revenue, Form 200, Local Intangibles Tax Return and 2026 rates)

For tax year 2024 and all later years Kansas has two brackets. Married couples filing jointly pay 5.2% on taxable income up to $46,000 and $2,392 plus 5.58% of the excess above that. All other filers pay 5.2% up to $23,000 and $1,196 plus 5.58% of the excess. The three-bracket schedule that topped out at 5.7% ended with tax year 2023. (K.S.A. 79-32,110, Tax imposed; schedules of tax rates)

A 2025 law, Senate Bill 269, makes future rate cuts depend on state revenue. Each August 15 the Director of the Budget tests whether the prior fiscal year’s general fund collections exceeded the fiscal year 2024 base adjusted for inflation, and whether the budget stabilization fund holds at least 15% of the prior year’s tax receipts. In August 2025 collections were $88.5 million short of the adjusted base, so there is no rate reduction for tax year 2026. (Kansas Department of Revenue, Notice 25-06, Decreases of Income and Privilege Tax Rates, Contingent on Revenue (October 2, 2025))

The standard deduction is fixed in statute for tax year 2024 and all later years at $3,605 for a single filer, $8,240 for a married couple and $6,180 for a head of household. Each filer or spouse who is 65 or older, or blind, adds $850 if single or head of household and $700 if married. A single filer 65 or older therefore deducts $4,455 and a couple who are both 65 or older $9,640. (K.S.A. 79-32,119, Kansas standard deduction of an individual)

For tax year 2025 and all later years the personal exemption is $18,320 for a married couple filing jointly and $9,160 for every other filer, with $2,320 more for each dependent. These amounts are fixed in statute too, with no additional exemption at 65 and no phase-out at higher incomes. (K.S.A. 79-32,121, Kansas personal exemptions)

The return runs from federal AGI (Form K-40, line 1) through Schedule S modifications to Kansas adjusted gross income (line 3), less the deduction (line 4) and exemptions (line 5), to taxable income on line 7. The table above cannot show how line 8 is found. Up to $100,000 the tax comes from a Tax Table in $50 bands, which can differ from the schedule by a dollar; above $100,000 a worksheet applies 5.58% and subtracts $175 for joint filers or $87 for others. The calculation on this page follows both. The 2026 booklet had not been published when this page was reviewed, so line numbers follow the 2025 form. (Kansas Department of Revenue, 2025 Individual Income Tax booklet (Form K-40 and Schedule S instructions))

The full Social Security subtraction is the largest break and it has no age test, only the requirement that the benefits were included in federal AGI. In our three example households it removes $25,500, $46,750 and $59,500 from Kansas income. (K.S.A. 79-32,117, Kansas adjusted gross income; modifications (Social Security and federal retirement benefits))

The additional standard deduction at 65 is modest: $850 for a single filer and $700 for each spouse on a joint return, worth about $47 and $39 of tax at the top rate. With the personal exemption, the 2025 booklet’s filing table shows that a single resident 65 or older need not file until gross income reaches $13,615, and a couple who are both 65 or older until it reaches $27,960. (Kansas Department of Revenue, 2025 Individual Income Tax booklet (Form K-40 and Schedule S instructions))

The same three households appear on every state page, so the figures can be compared across states. Each is a full-year resident taking the standard deduction, with no dependents. The figures are state income tax only: any county, city or school district income tax is described on this page but not added in. Pension income is from a private employer, and IRA figures are taxable withdrawals from traditional accounts. The state tax is our calculation from Kansas's published 2026 rules; it is an illustration, not a return.

These households also owe federal income tax, which is the same wherever they live. The tax bracket calculator and the guide to taxes in retirement cover that side.

As a comparative figure, the Tax Foundation’s 2026 report, using 2024 Census data, puts Kansas property taxes at 1.21% of owner-occupied home value, 13th highest among the states. That is about $4,840 a year on a $400,000 home. The report’s county figures show 1.12% in Johnson County and 1.18% in Sedgwick County. (Tax Foundation, Property Taxes by State and County, 2026 (comparative figures from Census ACS data))

A home is taxed on an assessed value of 11.5% of its appraised value. One break applies at every age: the first $75,000 of appraised value of a residence is exempt from the statewide 20-mill school finance levy, and the exempt amount is updated each year with the average change in statewide residential valuation. In the Department of Revenue’s example the exemption takes $172.50 off the bill. (Kansas Department of Revenue, Division of Property Valuation, 2026 Personal Property Summary (school finance levy exemption))

Relief aimed at older owners comes as three refund claims, of which a household may file only one. The figures here are for 2025 claims, due by April 15, 2026; the booklet for 2026 claims had not been published when this page was reviewed. The Homestead Refund (Form K-40H) pays up to $700 to owners with household income of $43,389 or less. The SAFESR refund (Form K-40PT) returns 75% of the property tax paid by owners 65 or older with household income of $25,380 or less. (Kansas Department of Revenue, 2025 Homestead or Property Tax Refund for Homeowners booklet (Forms K-40H, K-40PT and K-40SVR))

The third claim works as a freeze. For owners 65 or older and disabled veterans, the refund equals the homestead’s property tax for the year less its tax in the base year, the year the person first became eligible, or 2021 for anyone eligible earlier. The statute sets the household income limit at $50,000, indexed from 2023, and requires a base-year appraised value of $350,000 or less. For tax year 2025 and later, household income for this claim means Kansas adjusted gross income. (K.S.A. 79-4508a, Homestead property tax refunds; alternative amount of claim for seniors and disabled veterans)

The state sales tax rate is 6.5%, and cities and counties add local sales taxes on top. Since January 1, 2025 the state rate on food and food ingredients has been 0%, but the full local rates still apply to food, so groceries are taxed at whatever the city and county charge. (Kansas Department of Revenue: Frequently Asked Questions About Sales Tax)

The state’s food rate was stepped down from 6.5% to 4% in 2023 and 2% in 2024 before reaching zero. The reduced rate covers food and food ingredients, a category that in Kansas includes candy, soft drinks, bottled water and dietary supplements. Prepared food generally remains taxed at the full 6.5%, and alcoholic beverages are not food. (Kansas Department of Revenue, Publication KS-1223, Food Sales Tax Rate Reduction)

Prescription drugs and insulin are exempt from sales tax, along with prosthetic devices and mobility enhancing equipment. (Kansas Department of Revenue, Publication KS-1510, Kansas Sales Tax and Compensating Use Tax)

As a comparative figure, the Tax Foundation puts the average combined state and local rate at 8.69% as of January 1, 2026, ninth highest in the country, with local taxes averaging 2.19%. (Tax Foundation, State and Local Sales Tax Rates, 2026 (comparative figures))

Kansas has no estate tax. The estate tax law that applied to deaths from 2007 through 2009 was repealed on January 1, 2010, and the Department of Revenue’s notice states that the Legislature has enacted no estate tax for decedents dying after December 31, 2009, that no tax is due from those estates and that it will not process estate tax returns for them. (Kansas Department of Revenue, Notice 10-07, Kansas Estate Tax Repealed for Estates of Decedents Dying on or After January 1, 2010)

There is no inheritance tax either. Kansas replaced its inheritance tax with an estate tax for deaths on or after July 1, 1998, and the remaining inheritance tax liability for earlier deaths ended on July 1, 2008. Heirs of a Kansas resident who dies today owe no Kansas tax on what they receive, whatever their relationship to the decedent. (Kansas Department of Revenue, Notice 08-01, Kansas Inheritance Tax Ends on July 1, 2008)

The federal estate tax applies in every state. The estate tax calculator estimates both the federal tax and any state tax.

The contingent rate cut has now been tested twice without effect. In August 2026 fiscal year 2026 collections of $6.10 billion were $214.3 million below the inflation-adjusted base of $6.32 billion, although the budget stabilization fund stood at 20.4% of receipts against the required 15%. The Department of Revenue therefore announced that there will be no rate reduction for tax year 2027. (Kansas Department of Revenue, Notice 26-11, Decreases of Income and Privilege Tax Rates, Contingent on Revenue (2026))

When the trigger is met, all individual rates fall proportionally until the lowest reaches 4%, then the higher rate falls until it too is 4%; only after that do corporate and bank rates fall. The test is repeated every August 15. (Kansas Department of Revenue, Notice 26-11, Decreases of Income and Privilege Tax Rates, Contingent on Revenue (2026))

From tax year 2025, household income for the seniors and disabled veterans property tax claim is defined as the Kansas adjusted gross income of everyone in the household. Kansas AGI excludes Social Security and exempt public pensions, so a household living mainly on those sources can qualify with a substantial total income. (K.S.A. 79-4508a, Homestead property tax refunds; alternative amount of claim for seniors and disabled veterans)

A resident individual is a person domiciled in Kansas. Someone who spends more than six months of the tax year in Kansas in total is presumed to be a resident unless they can prove otherwise. Days alone do not settle the question in the other direction: a person domiciled in Kansas remains a resident while away. (K.S.A. 79-32,109, Definitions (resident individual))

The Department’s instructions add that a person who is away for a period and intends to return is still a resident, so a retiree who winters elsewhere but keeps Kansas as home files as a full-year resident. Where one spouse is a Kansas resident and the other is not and they file a joint federal return, they must file a joint Kansas return as non-residents. (Kansas Department of Revenue, 2025 Individual Income Tax booklet (Form K-40 and Schedule S instructions))

Part-year residents file Form K-40 with Schedule S, Part B, and report all income received while a Kansas resident plus Kansas-source income from the rest of the year. For non-residents, Kansas-source income does not include interest, dividends, annuities or gains on intangible property, and it does not include pensions or amounts from 401(k), 403(b), 457 and IRA accounts, even where the benefit was earned while living in Kansas. (Kansas Department of Revenue, 2025 Individual Income Tax booklet (Form K-40 and Schedule S instructions))

That last rule mirrors federal law. Under 4 U.S.C. 114 no state may tax the retirement income of a person who is not its resident or domiciliary. Someone who built an IRA while working in Kansas and retires to another state owes Kansas nothing on the withdrawals; someone who moves to Kansas with a private pension or IRA pays Kansas tax on it as a resident. (4 U.S.C. 114, Limitation on State income taxation of certain pension income)