Updated October 7, 2026. Quick answer: No. The Kansas Schedule S instructions list “Thrift Savings Plans” among the retirement benefits from federal employment that are exempt from Kansas income tax, and K.S.A. 79-32,117 subtracts “other amounts received as retirement benefits in whatever form” earned from federal employment. A Kansas resident subtracts the TSP withdrawal that is in federal adjusted gross income.
Kansas TSP withdrawal tax treatment at a glance
| Item | What the documents say |
|---|---|
| TSP withdrawals | Exempt: the Schedule S instructions name Thrift Savings Plans among retirement benefits specifically exempt from Kansas income tax |
| FERS annuity | Federal Civil Service Retirement or Disability Fund payments are listed in the same Schedule S bullet as the TSP; the statute also subtracts annuities under the federal civil service retirement system |
| Rate or limit printed | No cap printed; Kansas rates for 2025 are 5.2% on the first tier and 5.58% above it |
| Where it is reported | Schedule S, line A14 (retirement benefits specifically exempt from Kansas income tax) |
| Source | Kansas Department of Revenue; Kansas Legislature (kslegislature.gov) |
What the Kansas documents say
Line A14 of Schedule S is headed “Retirement benefits specifically exempt from Kansas Income Tax”, and tells a retiree to report on it the benefits that are in federal adjusted gross income but exempt in Kansas. The first bullet covers federal service: it lists civil service retirement payments and any other amounts received as retirement benefits from employment by the federal government, and ends by naming “Thrift Savings Plans”. You must make a specific entry on the schedule, and keep your 1099-R forms rather than enclosing them.
The statute behind it is K.S.A. 79-32,117, which defines Kansas adjusted gross income as federal adjusted gross income with listed modifications. Its subtraction for federal service reaches “other amounts received as retirement benefits in whatever form” that were earned for being employed by the federal government, in addition to annuities under the federal civil service retirement system.
The 2025 booklet’s tax schedule shows two rates: “$23,001 and over $ 5.58% (.0558)” on the upper tier, with 5.2% on the first tier. They apply to Kansas taxable income, which does not include the exempt amount.
A worked example at $30,000 of withdrawals
An illustration, not a return: a Kansas resident who retired from federal service takes $30,000 from the TSP in 2026, all of it included in federal adjusted gross income. On the instructions and the statute, the whole amount is entered on Schedule S line A14 and subtracted, so $0 of it is taxed by Kansas. Federal income tax still applies and is outside this page.
If you moved to Kansas or left it
The rules above are Kansas’s own, for a resident. Federal law limits what a state you have left may do: “No State may impose an income tax on any retirement income” of someone who is not a resident or domiciliary of that state, as 4 U.S.C. 114(a) puts it. The statute defines retirement income by reference to plans described in the Internal Revenue Code; this page does not decide whether a particular TSP payment meets that definition. If you moved during the year, check each state’s page and return. See CMG’s TSP withdrawal options and FERS, TSP and Social Security sequencing pages for the federal side.
What changes in 2026
The documents read for Kansas announce no change for 2026 that is specific to TSP withdrawals. The instructions read are for tax year 2025, the newest archived; check the state agency for the 2026 forms when they are published.
What the documents do not say
- The booklet and statute read do not separate the part of a TSP withdrawal that came from rollovers or from non-federal sources, and the statute speaks of benefits earned from federal employment. The booklet is for tax year 2025, and no 2026 Kansas rate or rule change is printed in the documents read.
Common mistakes
- Forgetting the specific Schedule S entry: the instructions say you must report the exempt benefits on line A14 to get the subtraction.
- Assuming money rolled into the TSP from an IRA or another source is also exempt; the statute covers benefits earned from federal employment.
- Assuming the answer for one state applies to another, or that the state answer changes the federal tax on the withdrawal.
Related: TSP withdrawal options, state tax on TSP withdrawals, Kansas retirement taxes, how Kansas taxes pensions, and how Kansas taxes 401(k) and IRA withdrawals.
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Answer againSources
- 2025 Individual Income Tax (Kansas K-40 / Schedule S instruction booklet, IP21 file ip25): https://www.ksrevenue.gov/pdf/ip25.pdf
- K.S.A. 79-32,117 Kansas adjusted gross income of an individual; addition and subtraction modifications: https://www.kslegislature.gov/li/b2025_26/statute/079_000_0000_chapter/079_032_0000_article/079_032_0117_section/079_032_0117_k/
- 4 U.S.C. 114, Limitation on State income taxation of certain pension income (U.S. Code, GovInfo): https://www.govinfo.gov/content/pkg/USCODE-2023-title4/html/USCODE-2023-title4-chap4-sec114.htm
Sources: the primary documents linked above, read on October 7, 2026. General information, not tax advice. Your own facts decide the outcome, and a tax professional or the state agency itself is the right place to confirm anything consequential.