Updated October 7, 2026. Quick answer: Yes, when federal withholding is required. The Department of Revenue’s withholding guide says “Kansas withholding is required only when federal withholding is required.” On a 401(k) payment with federal withholding, Kansas withholding follows.
Drawing a pension? Whether the state withholds tax from it, from its own documents: Kansas tax withholding on pension payments.
Kansas withholding at a glance
| Item | What the documents say |
|---|---|
| Is it required? | Only when federal withholding is required; voluntary when federal withholding is voluntary |
| Rate or amount | No rate stated for pensions; for a payment the guide does not discuss where federal withholding is a percentage, the guide gives 5% of the payment |
| How to start or stop it | Claiming exemption from federal withholding also exempts you from Kansas withholding; the guide names Form K-4 for employee allowances and extra withholding, not a pension form |
| Direct rollover | The guide lists eligible rollover distributions as subject to Kansas withholding when federal is required; it states no direct-rollover exemption |
| Changed for 2026? | No change stated; the guide read is Rev. 10-24 |
What the Kansas documents say
The Department of Revenue’s Withholding Tax Guide KW-100 ties pension withholding to the federal rule: “Kansas withholding is required only when federal withholding is required.” It says “Kansas withholding on deferred compensation plans follows federal withholding rules”, and that if a payee elects federal withholding when it is not required, Kansas withholding is voluntary as well.
The guide lists “eligible rollover distributions of pensions, annuities and other deferred income” among payments subject to Kansas withholding when federal withholding is required. On an exemption it says that an employee who claims one from federal withholding “the employee is also exempt from Kansas withholding”.
A $50,000 withdrawal: cash in hand or a direct rollover
Take a $50,000 401(k) withdrawal paid to you. The IRS says a taxable eligible rollover distribution paid to you from an employer plan is subject to “mandatory income tax withholding (generally at a rate of 20%)”, which on $50,000 is $10,000 (computed as $50,000 times 20%) held back for federal tax. Because federal withholding is required on it, Kansas withholding is required too. The guide gives no Kansas rate for pensions, so this page does not compute one. The only percentage the guide prints near the topic is “the Kansas withholding rate is 5% of the payment”, for a payment it does not discuss elsewhere where federal withholding is a percentage; the guide does not say that applies to pensions.
The other path is a direct rollover to an IRA or another plan. For federal tax the IRS says “The mandatory withholding doesn’t apply in a direct rollover”. The Kansas documents read do not say how a direct rollover is treated for state withholding, so confirm it with the payer before choosing.
What a mover should know
This page is about Kansas as a state of residence. An instruction line written for a nonresident or part-year filer is not the rule for a resident, and none of the documents read settles a part-year or two-state case, so check each state’s own rule. The federal side is the same everywhere; CMG’s federal 20% withholding on a pension lump sum page covers it.
What the documents do not say
- The guide read gives no Kansas rate for pension and 401(k) payments, names no pension-specific Kansas form, cites no statute section, and does not state a direct-rollover exemption. It is the Rev. 10-24 edition, and no 2026 change is stated.
Common mistakes
- Computing a Kansas amount from the 5% line; the guide does not say it covers pensions.
- Skipping the federal side: because Kansas follows federal withholding, a federal exemption also changes the Kansas result.
- Assuming the answer for one state applies to another, or that state withholding settles the state tax owed at filing.
Related: how Kansas taxes 401(k) and IRA withdrawals, Kansas retirement taxes, retirement withholding calculator, and retirement taxes by state.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
Compare vetted advisors for retirement withdrawals
If your portfolio is $250,000 or more, this connects you (free, with no obligation to hire anyone) with 2 to 3 vetted advisors.
Before you start, what actually happens. The matching service is run by WiserAdvisor, an independent advisor-matching company. It opens on their site, asks for your ZIP code and a few questions, and matches you with 2 to 3 vetted advisors. It is free to you.
WiserAdvisor states the service is built for portfolios of $250,000 and above. By submitting, you consent to emails, phone calls and text messages from WiserAdvisor and up to three advisors, so expect to be contacted. Clear Money Guide may earn a referral payment for a qualifying completed form, whether or not you ever hire anyone.
Opens on WiserAdvisor’s site in a new tab.
See how an advisor plans your withdrawals
Price the destination before you decide. The matching service below introduces you to advisers who pay to meet you.
Before you start, what actually happens. The form is run by Kapitalwise, our advisor-matching partner. Kapitalwise sends your details to advisers who pay for the introduction, so expect calls and texts. Clear Money Guide may earn a referral payment through this service, whether or not you ever hire anyone. This is free to you and there is no obligation to hire anyone.
The Kapitalwise form opens here; you stay on this page.
What happens when you press the button
It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Prefer flat-fee or hourly pricing instead? Compare ranges here.
Answer againSources
- Withholding Tax Guide KW-100 (Rev. 10-24): https://www.ksrevenue.gov/pdf/kw100.pdf
- IRS Tax Topic 413, Rollovers from retirement plans: https://www.irs.gov/taxtopics/tc413
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.