Updated October 4, 2026. Quick answer: No. Kansas’s Department of Revenue says military retirement benefits “are a subtraction modification from federal adjusted gross income”. The statute covers retirement benefits earned for service in the armed forces of the United States, and the documents print no dollar cap or age.
How Kansas treats military retired pay
| Item | What the documents say |
|---|---|
| Treatment | Full subtraction from federal adjusted gross income, claimed in Part A of Schedule S of Form K-40 |
| Statute | K.S.A. 79-32,117 lists retirement benefits earned for service in the armed forces of the United States |
| Cap or age | None printed in the documents read |
| Rate on other income | 2025 estimated tax schedule: 5.2% of taxable income up to $46,000 for joint filers ($23,000 for single, head of household or married filing separate), then 5.58% on the excess |
| Age of the guidance | The Department’s armed forces instruction sheet is dated January 2004, so the 2025 rule rests on the current statute and that sheet together |
A $30,000 example
A retiree with $30,000 of military retired pay subtracts all $30,000 in Part A of Schedule S, so none of that pay is left to tax.
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What changes in 2026
No 2026 change is printed in the documents read.
Federal rules
The state’s treatment sits on top of the federal one. The IRS explains the federal side in Publication 3, Armed Forces’ Tax Guide.
Related: whether Kansas taxes pensions, how Kansas taxes retirement income, military retirement pay by state, and the military retirement calculator.
Sources
- K.S.A. 79-32,117 Kansas adjusted gross income modifications: https://www.ksrevisor.gov/statutes/chapters/ch79/079_032_0117.html
- Kansas Income Tax Instructions for Armed Forces Personnel (IA-36): https://www.ksrevenue.gov/pdf/ia-36.pdf
- 2025 Kansas Individual Estimated Tax (K-40ES): https://www.ksrevenue.gov/pdf/k-40es25.pdf
Sources: the primary documents linked above, read on October 4, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.