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Kentucky Bill HB 183 Restores Higher State Income Tax Exclusion for Retirement Distributions Starting in 2027

Original title: AN ACT relating to the taxation of retirement distributions.

Last action · January 14, 2026: to Appropriations & Revenue (H)Sponsors: A. Tackett Laferty and 2 others

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Proposed

Kentucky House Bill 183 restores the state income tax exclusion cap on retirement plan to $41,110 for taxable years beginning on or after January 1, 2027. The measure modifies calculations of by updating exclusions for pensions, annuities, profit-sharing, and retirement savings plans.

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

Kentucky Retirees and Taxpayers

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What is the current retirement income tax exclusion limit in Kentucky?
For tax years beginning before January 1, 2027, the exclusion is up to $31,110 of total from pension, annuity, profit-sharing, and retirement plans.
Are Social Security and railroad retirement benefits taxed by Kentucky?
No, Social Security and railroad retirement benefits subject to federal income tax are excluded from Kentucky .

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

This bill did not become law - Died at adjournment · in House committee.

Procedural history

2 actions
  1. Jan 14, 2026HouseCommittee
    to Appropriations & Revenue (H)
  2. Jan 7, 2026HouseIntroduced
    introduced in House to Committee on Committees (H)

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Restoration of Prior Retirement Tax Exclusion Threshold

The bill restores the retirement income tax exclusion cap to the historical $41,110 level used prior to 2018, reversing the intermediate $31,110 cap period.

Connected Entities

Internal Revenue Service, Kentucky
OrganizationInternal Revenue Service“Federal tax agency referenced regarding income tax provisions and rulings.”Map →
locationKentucky“Commonwealth of Kentucky enacting the tax legislation.”Map →

Sources

Open source document

apps.legislature.ky.gov

Analysis Score

0–100
  • Significance20
    Lowered because this bill did not pass (its text scored 60)
  • Controversy20
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz30
    Current news / social attention level

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