KENTUCKY RETIREMENT INCOME TAX · TAX YEAR 2026
Does Kentucky tax Social Security and retirement income?
Kentucky does not tax Social Security benefits. Kentucky excludes up to $31,110 (latest published, 2025) per person of pension and 401(k) and IRA income combined, at any age, and taxes the rest at its flat rate. A single 67-year-old with $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals pays no Kentucky income tax for 2026.
Your estimate
- Kentucky income tax
- $0.00
- Federal income tax
- $1,810.00
- Total income tax
- $1,810.00
Subtracted from Kentucky income
- Social Security
- $11,300.00
- Pension income exclusion
- $30,000.00
Not yet published for 2026: Pension income exclusion per person $31,110 (latest published, 2025); Age 65 personal tax credit $40 (latest published, 2023).
Schedule P, which can exclude more for federal, military and Kentucky government service before 1998, is not modeled.
Kentucky tax at different retirement incomes
Kentucky income tax for 2026 on a single 67-year-old with $24,000 of Social Security, and on a married couple, both 67, with $20,000 each. Half the pension and IRA income is a private pension and half IRA withdrawals, all received by one spouse in the couple.
| Pension and IRA income | Single | Married |
|---|---|---|
| $20,000 | $0 | $0 |
| $40,000 | $154 | $114 |
| $60,000 | $854 | $814 |
| $100,000 | $2,254 | $2,214 |
| $150,000 | $4,004 | $3,964 |
Does Kentucky tax Social Security?
No. Kentucky exempts Social Security benefits, so any amount included in federal adjusted gross income is subtracted.
Of the single 67-year-old's $24,000 in benefits, $11,300 is federally taxable and Kentucky taxes none of it. Of the couple's $40,000, $28,100 is federally taxable and Kentucky taxes none of it.
Does Kentucky tax pensions?
Partly. Private and government pensions, including military retirement, share one exclusion of up to $31,110 (latest published, 2025) per person with IRA and 401(k) income, with no age or income limit, and each spouse figures it separately. Federal, military and Kentucky state and local retirees with service before 1998 can exclude more on Schedule P, which the calculator does not model.
State tax for a single 67-year-old with $24,000 of Social Security, a $20,000 pension of each type and $10,000 of IRA withdrawals. Excluded is the part of the pension Kentucky exempts.
| Pension | Excluded | State tax |
|---|---|---|
| Private | $20,000 | $0 |
| Kentucky government | $20,000 | $0 |
| Federal civil service | $20,000 | $0 |
| Military | $20,000 | $0 |
Does Kentucky tax IRA and 401(k) withdrawals?
Partly. IRA and 401(k) withdrawals, including Roth conversions, count toward the same $31,110 (latest published, 2025) exclusion as pensions. Qualified Roth IRA withdrawals are not taxed.
With $24,000 of Social Security, $20,000 of IRA withdrawals and no other income, a single 67-year-old pays no Kentucky income tax for 2026.
At what age do retirement tax breaks start in Kentucky?
At 65, for the $40 (latest published, 2023) personal tax credit for each person 65 or older. The pension exclusion has no age requirement, and Kentucky's standard deduction has no extra amount at 65.
State tax at each age where the rules change. The single filer has $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals; the couple, both that age, has $20,000 of Social Security each and a $30,000 pension and $20,000 of IRA withdrawals.
| Age | Single | Married |
|---|---|---|
| 64 | $0 | $544 |
| 65Age 65 personal tax credit | $0 | $464 |
What the calculator leaves out
Schedule P, which can exclude more for federal, military and Kentucky government service before 1998, is not modeled.
- The Family Size Tax Credit is tested on modified gross income, taken as the greater of federal and Kentucky AGI (KRS 141.066).
The calculator uses Kentucky rules from the 2025 forms and instructions, the latest published.
Figures not yet published for 2026
- Pension income exclusion per person: $31,110 (latest published, 2025).
- Age 65 personal tax credit: $40 (latest published, 2023).
Federal tax uses the 2026 brackets, the standard deduction with the extra amount at 65, and the $6,000 senior deduction. Estimates assume no other deductions, credits or local taxes except as noted.