Does Kentucky tax pensions and retirement income?
Taxed, with a retirement exclusion
Partly. Kentucky allows a pension exclusion of $31,110.
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.”
And Social Security?
No. None of your Social Security is taxable in Kentucky. The Kentucky Social Security page quotes the rule.
Federal tax still applies
Whatever Kentucky does, pensions, annuities and traditional IRA or 401(k) withdrawals are generally taxable on your federal return. See the federal tax brackets and, if you are 73 or older, the required minimum distribution calculator.
State rules change, and the details (age limits, income limits, which plans qualify) 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 12, 2026.