KY · Tax Year 2026
How Kentucky taxes Social Security, pensions, 401(k)/IRA withdrawals, and military retirement pay in 2026.
$31,110 per person combined qualifying pension/IRA/401(k)/military exclusion
No general age requirement for $31,110 exclusion
Additional Notes
Government benefits attributable to service before 1998 may qualify for additional exclusion
Does Kentucky tax Social Security benefits?
No. Kentucky does not tax Social Security retirement benefits.
Does Kentucky tax pension income?
Partially. Kentucky provides exemptions for certain types of pension income — often public, government, or military pensions — while private pensions may be partially or fully taxable. See eligibility details above.
Does Kentucky tax 401(k) and IRA withdrawals?
Yes, traditional 401(k) and IRA withdrawals are generally taxable in Kentucky. However, exclusions or credits may apply depending on your age and income — review the details above.
Is Kentucky a tax-friendly state for retirees?
It depends on your income mix. Kentucky offers some retirement income relief, but the rules vary by income type and eligibility. Review the details above and consider consulting a tax professional for your specific situation.
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Data Source
Official Kentucky state tax authority guidance. Tax year 2026. Some annually indexed thresholds may not yet be finalized — confirm with the state revenue department before filing.
Related for Kentucky
Data reflects tax year 2026 rules sourced from official Kentucky state tax authorities. This page is for informational purposes only — always confirm current rules with the state revenue department or a qualified tax professional before making financial or relocation decisions.