Kansas
KPERS benefits, the $6,000 death benefit and KPERS lump sums are subject to federal tax but not Kansas income tax (lump sums stay Kansas-exempt even when rolled over). Your contributions are pretax for federal tax but taxable for Kansas: you add them back on your Kansas return (Schedule S). If you move, check the new state's rules. Membership Guide, p. 3, Taxes; Membership Guide, p. 15, State and Federal Taxes
Federal
Federally taxable. KPERS withholds 20% from a lump sum not rolled over (possible 10% penalty under 59 1/2). Part of a benefit is tax-free if you made after-tax contributions (members before July 1984, or lump-sum service purchases not made by rollover). You get a 1099-R each January. Membership Guide, p. 15; Pre-Retirement Guide, p. 18
The tax rules touch other choices: a partial lump sum at retirement (see Payment options), a withdrawal when you leave (see Leaving a KPERS job), and the retiree death benefit (see Survivor benefits). KPERS's publications don't go beyond these points; for your own return, ask a tax preparer or the Kansas Department of Revenue.
What KPERS says
- KPERS benefits, the $6,000 death benefit and KPERS lump sums are subject to federal tax but not Kansas income tax (lump sums stay Kansas-exempt even when rolled over). Your contributions are pretax for federal tax but taxable for Kansas: you add them back on your Kansas return (Schedule S). If you move, check the new state's rules.Membership Guide, p. 3, Taxes; Membership Guide, p. 15, State and Federal Taxes
- Federal tax: Federally taxable. KPERS withholds 20% from a lump sum not rolled over (possible 10% penalty under 59 1/2). Part of a benefit is tax-free if you made after-tax contributions (members before July 1984, or lump-sum service purchases not made by rollover). You get a 1099-R each January.Membership Guide, p. 15; Pre-Retirement Guide, p. 18
- On the 2025 Kansas Schedule S: add back your contributions on line A2, subtract KPERS benefits on line A14 and a KPERS lump sum on line A11.Kansas 2025 Schedule S, Part A
Questions
Does Kansas tax KPERS benefits?
No. KPERS benefits aren't subject to Kansas income tax. They are federally taxable.
Where do I subtract KPERS on my Kansas return?
On the 2025 Schedule S: KPERS benefits on line A14, a KPERS lump sum on line A11. While you're working, you add your contributions back on line A2.
What if I move out of Kansas?
Check your new state's rules. The exemption is a Kansas rule.
General information, not tax advice.
Source: KPERS Membership Guide: KPERS 1 & 2, Correctional KPERS 1 & 2, Revised 2/26, pp. 3, 15. Also: KPERS Pre-Retirement Planning Guide for KPERS 1 & 2 (1/25), pp. 18-19, 18. Also: KPERS 1 & 2 Retirement Application booklet (6/26), pp. 25, 4-5. Also: KPERS 3 Pre-Retirement Webinar slides, slide 47. Last reviewed .