Retirement taxes by state
How Kentucky taxes retirement income in 2026
Kentucky has a flat 3.5% income tax. Here's how Kentucky treats Social Security, retirement-account withdrawals, pensions and Roth conversions in 2026 — and what that means in dollars: a retired couple, both 67, with $98,000 of income pays about $115 in Kentucky income tax.
Updated October 2026 · 2026 tax year
Kentucky at a glance
- Flat 3.5% income tax.
- Social Security isn't taxed.
- Retirement income (pensions, 401(k)s, IRAs, Roth conversions): up to $31,110 per person excluded.
Kentucky retirement tax questions
Does Kentucky tax Social Security?
No. Social Security isn't taxed.
Does Kentucky tax 401(k) and IRA withdrawals?
Partly. Retirement income (pensions, 401(k)s, IRAs, Roth conversions): up to $31,110 per person excluded.
Does Kentucky tax pensions?
Partly. Retirement income (pensions, 401(k)s, IRAs, Roth conversions): up to $31,110 per person excluded.
Does Kentucky tax Roth conversions?
Partly. Retirement income (pensions, 401(k)s, IRAs, Roth conversions): up to $31,110 per person excluded. Anything above that is taxed like other income.
What is Kentucky's income tax rate in 2026?
Kentucky has a flat 3.5% income tax.
What retirees actually pay in Kentucky: three examples
Calculated with Retirology's tax engine under 2026 law, using each state's standard deduction, its retirement breaks and the 2026 federal rules for how much Social Security is taxable. For the retired couple, Kentucky ranks 28th lowest of the 50 states and DC.
| Household | Total income | Kentucky tax | Share |
|---|---|---|---|
| Retired couple, both 67 $48,000 of Social Security, $40,000 drawn from IRAs and 401(k)s, and $10,000 of qualified dividends | $98,000 | $115 | 0.1% |
| Single retiree, 70 $30,000 of Social Security, a $25,000 pension and $15,000 of IRA withdrawals | $70,000 | $194 | 0.3% |
| Early-retired couple, both 56, converting to Roth A $60,000 Roth conversion and $20,000 of long-term gains and qualified dividends, living on savings | $80,000 | $465 | 0.6% |
State income tax only — before local taxes, property tax relief and credits not listed above. Federal income tax is extra and the same in every state.
Details and limits
$31,110 per person of pension/IRA income (incl. conversions) excluded at any age. Married couples are given two standard deductions (most file separately on one return).
Sources
Rates and rules for the 2026 tax year, from Retirology's state tax data (reviewed October 2026):
This page explains state tax rules in general terms. It isn't tax advice — check your state's official instructions or a tax professional for your situation.