AN ACT relating to the taxation of retirement distributions.

Amend KRS 141.019 to increase the retirement distribution exclusion from $31,110 to $41,110 for taxable years beginning on or after January 1, 2027.

Introduced: January 7, 2026

Last action: January 14, 2026

To Appropriations & Revenue (H)

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This bill would raise the amount of retirement income that Kentuckians can exclude from state taxes, increasing the exemption from $31,110 to $41,110 starting in the 2027 tax year. That means retirees would owe state income tax on a smaller portion of their retirement distributions than they do today. Who it may affect: Kentuckians receiving retirement distributions who file state income taxes.

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