Does Kansas Tax Federal Pensions (FERS, CSRS)? 2026

Updated October 30, 2026. Quick answer: No, for federal retirement benefits. The 2025 Kansas booklet lists “Federal Civil Service Retirement or Disability Fund payments and any other amounts” under the line “Retirement benefits specifically exempt from Kansas Income Tax”, and the entry ends with the words “including Thrift Savings Plans”.

What Kansas does with a FERS or CSRS annuity

QuestionWhat the Kansas documents say
What the source saysKansas subtracts federal Civil Service Retirement payments and other retirement benefits earned from federal government employment from Kansas income, so they are exempt from Kansas income tax.
Change for 2026No 2026 change is printed in the state documents cited here.

In the Kansas documents’ own words

  • “retirement benefits from employment by the federal government” (2025 Individual Income Tax booklet (K-40, Schedule S instructions))
  • “other amounts received as retirement benefits in whatever form” (K.S.A. 79-32,117 Kansas adjusted gross income; addition and subtraction modifications)
  • “annuities under the federal civil service retirement system” (K.S.A. 79-32,117 Kansas adjusted gross income; addition and subtraction modifications)

How this differs from other pensions in Kansas

The 2025 booklet lists federal civil service benefits alongside KPERS and other listed plans as exempt, so they get the same full subtraction as those plans; benefits from plans not on that list are not described as exempt in the state documents cited here. See also Does Kansas tax pensions? and military retirement pay.

FERS, CSRS and your TSP

The 2025 booklet’s federal entry on Schedule S, line A14 ends with the words including Thrift Savings Plans, and the statute covers other retirement benefits earned from federal employment in whatever form. For the Thrift Savings Plan itself, see Does Kansas tax TSP withdrawals? and the TSP calculator.

Where this rule sits on the Kansas return

The subtraction is entered on Schedule S, line A14, and K.S.A. 79-32,117 lists annuities under the federal civil service retirement system among the subtraction modifications.

Checks before you rely on this answer

  • Enter the full federally taxed amount on Schedule S, line A14, since no dollar cap is printed.
  • Include TSP distributions only to the extent the booklet lists Thrift Savings Plans among federal retirement benefits.
  • Check that the payment comes from federal employment, because the exemption is written for those benefits.

What the Kansas documents leave open

The booklet prints no age test and no dollar cap for the federal subtraction, and its rate tables were not used, so no rate is stated. No 2026 booklet exists yet, FERS is covered by the wording for other federal employment retirement benefits rather than a separate sentence, and the booklet joins federal employment and Armed Forces service in one sentence, so which service the words including Thrift Savings Plans attach to is not spelled out.

Common mistakes

  • Assuming every retirement plan is exempt. Kansas lists federal and certain other benefits; plans not on the list are not described as exempt.
  • Leaving the amount in income. The benefits are included in federal AGI and then subtracted on Schedule S.

Related: Does Kansas tax pensions?, Kansas military retirement pay, Kansas retirement deduction line by line, and FERS, TSP and Social Security sequencing.

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Sources

Read from the state documents linked above on October 30, 2026. General information, not tax advice.