Does Kentucky tax military retirement pay?
Partly taxed
Partly. Kentucky's pension exclusion of $31,110 covers military retirement pay like other pensions.
In the state's own words
Copied word for word from the official document linked below each quote:
“Kentucky allows a pension exclusion of $31,110 and none of the Social Security income is taxable; therefore, your Kentucky adjusted gross income is $0.”
Other retirement income in Kentucky
Partly. Kentucky allows a pension exclusion of $31,110. The Kentucky pension page has the details, and the Kentucky Social Security page covers Social Security. No. None of your Social Security is taxable in Kentucky.
Before you file or move
This page is about state income tax only. Your federal return has its own rules for military retired pay, and VA disability compensation is a separate benefit from retired pay. State rules change, and the details (age, years, which kinds of pay qualify, survivor benefits) matter. Check with the Kentucky Department of Revenue before you file or move.
Other states in the same group
Check our work
The answer above comes from this document. Follow the link and compare.
- Do I Need to File a ReturnKentucky Department of Revenue. Read on November 13, 2026.