Updated September 5, 2026. Quick answer: No. Kentucky subtracts all Social Security and equivalent railroad retirement benefits from state taxable income.
Confidence note: medium. This page is scoped to Social Security taxation specifically. For the state’s full retirement-tax picture (pensions, tax rates, estate and probate), see how Kentucky taxes retirement income generally.
How Kentucky taxes Social Security benefits
| State personal income tax | Yes |
|---|---|
| Social Security treatment | Not taxed |
| How it works | Kentucky Form 740 Schedule M subtracts Social Security and Social Security-equivalent U.S. Railroad Retirement Board benefits reported on federal Form 1040 line 6(b) from federal AGI, at every income level, under KRS 141.019. |
| Income threshold / phase-out | No income threshold or age test; full exemption at every income level. |
Coordinate this with your overall retirement plan
An adviser can help weigh how much of your Social Security income actually reaches you after state tax, whether the timing of other withdrawals affects that, and how it fits the rest of your plan, but that does not replace the numbers in your own return.
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Statute and sources
Governing citation: KRS 141.019.
Read September 5, 2026.
Related: how Kentucky taxes retirement income generally · does Kentucky tax Roth conversions? · Roth conversion taxes, all 51 jurisdictions.
General information drawn from each state’s own published statutes and revenue-department guidance, not legal, tax or financial advice. Figures and exemption amounts are current as of the date in the quick answer, are set by state law, and can change by future legislation; any pending bill named on this page is not yet law. This page cannot see your own return, which governs. We are not a law firm, a tax adviser, or a fiduciary, and this is not personalized advice.