A 2024 law erased one of the harshest features of Kansas tax: the cliff that taxed every dollar of Social Security once your income crossed $75,000. Starting with 2024, Social Security is fully exempt for all Kansas retirees regardless of income. The Kansas retirement income tax still treats pensions unevenly, though, with government pensions exempt and most private and out-of-state income fully taxable.
This guide explains the new Social Security rule, which pensions Kansas exempts, and why IRA and 401(k) withdrawals are taxed in full.
In This Guide
- Kansas Retirement Income Tax at a Glance
- Kansas Retirement Income Tax: How It Works
- Social Security
- KPERS, Federal, and Public Pensions
- Private Pensions, Out-of-State Pensions, IRAs, and 401(k)s
- What the Change Means for Retirees
- Frequently Asked Questions
- Next Steps
Kansas Retirement Income Tax at a Glance
Kansas now draws a clean line. Social Security is out for everyone. Kansas public-employee and federal pensions are out. Almost everything else, including private pensions, out-of-state government pensions, and retirement account withdrawals, is taxable. The table below shows where each income type lands.
| Income type | Treatment | Notes |
|---|---|---|
| Social Security | Fully exempt | No income limit; $75,000 cliff removed by SB 1 (2024) |
| KPERS and Kansas public pensions | Fully exempt | Includes state and local government systems |
| Federal pensions | Fully exempt | Civil service and other federal retirement |
| Out-of-state public pensions | Taxable | Pensions from other states' governments |
| Private pensions | Taxable | Taxed under the regular schedule |
| IRA and 401(k) distributions | Taxable | No separate retirement-account exemption |
| Senior-specific exclusion | None separate | The pension rules above do the work |
Kansas runs a two-bracket income tax of 5.2 percent and 5.58 percent. Whatever retirement income is taxable falls under that schedule.
Kansas Retirement Income Tax: How It Works
For years, Kansas had a notorious Social Security "cliff." If your federal adjusted gross income reached $75,000, you did not lose part of the exemption; you lost all of it, and every dollar of Social Security became taxable at once. A single dollar of extra income could trigger thousands in added tax. That cliff is gone. A 2024 law passed in a special session, SB 1, fully exempted Social Security for tax years beginning after December 31, 2023.
With Social Security settled, the rest of the Kansas retirement income tax turns on pension type. The Kansas Department of Revenue exempts Kansas public-employee and federal pensions in full, while taxing private pensions, out-of-state government pensions, and retirement-account withdrawals. There is no broad senior income exclusion layered on top; the source of the income decides the outcome.
Social Security
Effective for tax years beginning after December 31, 2023, Kansas fully exempts Social Security benefits from state income tax. The prior rule, which taxed Social Security once federal AGI exceeded $75,000, was removed by SB 1. There is now no income limit at all.
This is a meaningful shift for middle-income Kansas retirees, who were the people the old cliff hit hardest. A couple sitting just above $75,000 used to face full taxation of their benefits; now they keep every dollar. The rule is simple and applies to all filers regardless of income.
KPERS, Federal, and Public Pensions
Kansas fully exempts pensions paid by Kansas public-employee retirement systems, including KPERS, and federal pensions. That covers retired state and local government workers, teachers in the Kansas system, and federal civil-service retirees living in Kansas.
If your pension comes from a Kansas government employer or the federal government, it is not taxed by Kansas. This is one of the more generous pieces of the system and a real advantage for career public servants who retire in state.
Private Pensions, Out-of-State Pensions, IRAs, and 401(k)s
Here is where Kansas is less forgiving. The following are all taxable under the regular Kansas schedule:
- Private pensions from non-government employers
- Out-of-state public pensions, meaning government pensions earned in another state
- IRA distributions (traditional)
- 401(k) distributions and similar employer-plan withdrawals
If retirement accounts are a major part of your income, plan for that tax. Retirement accounts for care covers how withdrawals interact with funding care.
What the Change Means for Retirees
The Social Security change is the headline, and it genuinely simplifies planning for many Kansas retirees. With the cliff gone, you no longer have to manage income to the dollar to avoid losing the entire exemption. But the pension and account rules still reward some retirees more than others. A KPERS retiree with Social Security may owe Kansas almost nothing; a retiree living on a private pension and 401(k) withdrawals is taxed on most of it.
Consider two single Kansas retirees, each with $30,000 in Social Security and $35,000 in additional income. The first draws the $35,000 from a KPERS pension. Both the Social Security and the KPERS pension are exempt, so Kansas taxes essentially nothing. The second draws the $35,000 from a traditional IRA. The Social Security is still exempt, but the full IRA withdrawal is taxable, so the second retiree pays Kansas tax on the $35,000 under the 5.2 percent and 5.58 percent brackets. Same total income, very different result, driven entirely by the source. The figures here are hypothetical and shown only to illustrate the mechanic; they are not a real case and not a prediction of your own outcome.
Before the 2024 change, the picture was even starker, because that second retiree could have been pushed over the $75,000 cliff and lost the entire Social Security exemption on top of the IRA tax. Removing the cliff took that compounding penalty off the table.
This is general information, not personalized tax advice. Whether a particular pension counts as a Kansas public pension, an out-of-state pension, or a private pension is the kind of classification worth confirming with the Kansas Department of Revenue or a tax professional. If you are mapping how to fund care from these sources, building a senior care funding plan is a good next step.
Unsure whether your pension is exempt or taxable in Kansas? Chat with Brevy's care navigator to work it through.
Frequently Asked Questions
No. Beginning with tax years after December 31, 2023, Kansas fully exempts Social Security benefits with no income limit. The 2024 law SB 1 removed the old rule that taxed benefits once federal AGI exceeded $75,000.
No. KPERS and other Kansas public-employee pensions, along with federal pensions, are fully exempt from Kansas income tax.
Yes. Traditional IRA and 401(k) distributions are taxable in Kansas under the regular schedule. There is no separate exemption for retirement-account income.
No. The exemption applies to Kansas public-employee pensions and federal pensions. Out-of-state public pensions are taxable in Kansas.
Kansas has a two-bracket income tax of 5.2 percent and 5.58 percent. Taxable retirement income is taxed under that schedule.
Next Steps
If you are retired in Kansas, the first thing to confirm is that the new Social Security rule is reflected on your return; after that, sort your pensions and accounts by type.
- Confirm Social Security is fully exempt for your year; the income cliff is gone.
- Identify your pension source: Kansas public or federal pensions are exempt; out-of-state and private pensions are taxable.
- Plan for tax on IRA and 401(k) withdrawals, which Kansas taxes in full.
- Estimate your bill using the 5.2 percent and 5.58 percent brackets on the taxable portion.
If you are weighing how to pay for care, how to pay for senior care lays out the options.
Learn More
Find personalized help making sense of the Kansas retirement income tax at brevy.com.
The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.