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Does Kansas Tax Annuity Income? (2026)

Updated October 5, 2026. Quick answer: Yes, with listed exceptions. Kansas starts from federal adjusted gross income and its Schedule S subtracts only specified plans, among them “Kansas Public Employees’ Retirement (KPERS) annuities”. The booklet prints two rates, 5.2% and 5.58%.

More state retirement-income schedules, line by line: Kansas Schedule S.

How Kansas treats annuity income

ItemWhat the documents say
TreatmentTaxed; named government and educational plans subtracted
Rates“5.2% (.052)” on the lower bracket and “5.58% (.0558)” above it
SubtractedFederal civil service and military retirement, Railroad Retirement, KPERS, Kansas Police and Firemen’s, Teachers’, Highway Patrol and Justices and Judges annuities, and others the booklet lists; no age or dollar cap is printed
Faculty contracts“Income from retirement annuity contracts purchased for faculty and others employed”
Purchased annuitiesA commercial annuity is not among the plans listed for the subtraction

A $24,000 example

A KPERS or other listed annuity paying $24,000 a year is subtracted in full and adds $0 of Kansas tax.

A commercial annuity paying $24,000 is not on the list, so at the lower rate alone the tax is $1,248, computed as $24,000 x 5.2%; the higher rate applies as other income raises the total.

What changes in 2026

The latest documents read print no 2026 change to the way annuity income is taxed.

Federal rules

The state’s treatment sits on top of the federal one. The IRS explains the federal side in Topic no. 410, Pensions and Annuities and Publication 575, Pension and Annuity Income.

Related: whether Kansas taxes pensions, how Kansas taxes retirement income, state tax on 401(k) and IRA withdrawals, how a surrendered annuity is taxed, and pension and annuity decisions.

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Sources

Sources: the primary documents linked above, read on October 5, 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.

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