Kansas taxes income but not military retired pay. Retired pay, Survivor Benefit Plan annuities and social security in federal adjusted gross income are all subtracted out, with no cap and no age test.
Also called: military retirement, retired pay, income tax, 79-32,117, Survivor Benefit Plan, SBP, social security, K-40.
Unlike its neighbours to the south, Kansas does have an individual income tax. It simply does not reach military retired pay.
Kansas starts from federal adjusted gross income and then applies statutory modifications in 79-32,117. Among the subtractions is the amount of any retirement benefits received from the federal government, which takes military retired pay out of Kansas taxable income entirely. There is no dollar cap, no age threshold, no years-of-service requirement and no phase-out by income.
Survivor Benefit Plan annuity payments are treated the same way and are not taxed by Kansas, and neither are the Reserve Component and Retired Serviceman's Family Protection Plan annuities. Social security benefits included in federal adjusted gross income are also subtracted.
Military disability retirement pay received as a pension or annuity for a service-connected injury is excluded, and VA disability compensation and Dependency and Indemnity Compensation are not federally taxable in the first place, so they never enter the Kansas computation.
Active duty military pay is a different matter and is commonly got wrong. Kansas taxes the military pay of a Kansas resident to the same extent the federal government does. There is no state exclusion for it. A Kansas-domiciled soldier stationed anywhere in the world files and pays Kansas income tax on base pay.
A nonresident service member stationed in Kansas does not owe Kansas tax on military pay, and under the federal residency relief rules their spouse's Kansas-earned income is likewise outside Kansas tax where the service member and spouse are out-of-state residents and the spouse is in Kansas only to accompany the member.
Kansas restructured its rate and exemption structure in 2024, and for tax year 2025 and thereafter the personal exemption in 79-32,121(a) is $9,160 for a single filer, $18,320 for a married couple filing jointly, and $2,320 for each dependent. A disabled veteran rated 100 percent permanent gets a further exemption on top of those, which this catalog carries separately.
A deployed service member gets the federal combat zone treatment, with a 180-day extension after deployment for filing returns, paying tax and filing refund claims.
Thresholds
Thresholds for Kansas Income Tax on Military Retired Pay
Gate
Rule
No rating and no minimum service
The subtraction for federal retirement benefits reaches military retired pay without reference to a disability rating, an age or a length of service.
Active duty pay of a Kansas resident is still taxed
Kansas has no exclusion for active duty military pay. A Kansas-domiciled member owes Kansas income tax on it wherever stationed. A nonresident stationed in Kansas does not.
Survivor Benefit Plan annuities are also untaxed
SBP, RCSBP and RSFPP annuity payments are not taxed by Kansas, and social security benefits in federal adjusted gross income are subtracted.
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Disclaimer
VetTOC is not affiliated with the U.S. Department of Veterans Affairs or the Department of Defense. Information is for reference only and is not an eligibility determination. Verify with VA, the relevant state or territory, or an accredited VSO.