Kansas fully exempts military retirement pay from state income tax and in 2026 launches one of the more notable new veteran benefits in the country: a sales tax exemption for 100% permanently disabled veterans on purchases up to $24,000 per year, effective July 1, 2026. That addition reflects growing legislative momentum in Topeka around veteran financial relief, building on a foundation of retirement tax exemptions, property tax homestead refunds, and a strong National Guard education program.
Kansas is home to approximately 200,000 veterans and hosts Fort Riley — home of the 1st Infantry Division, one of the Army’s most storied combat divisions. Fort Leavenworth, site of the Army’s Command and General Staff College, is one of the nation’s most important military education installations. McConnell Air Force Base in Wichita serves the Air Mobility Command. The Kansas National Guard is headquartered at Topeka’s Forbes Field.
USMilitary.org is an independent educational resource, not affiliated with the Kansas Office of Veterans Services, the VA, or any government agency. For official benefit information, visit kovs.ks.gov.
- Military retirement pay, SBP annuities, and TSP dividends are fully exempt from Kansas income tax
- Beginning July 1, 2026, veterans with a 100% permanent service-connected disability are exempt from Kansas sales tax on purchases up to $24,000/year
- Disabled veterans with at least a 50% service-connected disability and income under $56,450 may claim a homestead property tax refund on homes appraised at $350,000 or less
- The Kansas Hero’s Scholarship Act provides tuition waivers for dependents and spouses of deceased or severely disabled veterans at Kansas state institutions
- National Guard members can receive tuition waivers through the Kansas National Guard Educational Assistance Program
- Kansas operates three veterans homes — in Fort Dodge, Winfield, and Topeka — providing long-term care for eligible veterans
- Income Tax Benefits
- Sales Tax Exemption (New July 2026)
- Property Tax Benefits
- Education Benefits
- Employment Benefits
- Kansas Veterans Homes
- Emergency Financial Assistance
- Vehicle and License Plate Benefits
- Recreation Benefits
- Surviving Spouse Benefits
- How to Access Kansas Veteran Benefits
- Frequently Asked Questions
Income Tax Benefits
Military Retirement Pay — Fully Exempt
Kansas fully exempts military retirement pay from state income tax. Military retired pay that is included in federal adjusted gross income is not taxed in Kansas. The exemption covers all branches of the U.S. Armed Forces, uniformed services, and reserve component retirees.
Survivor Benefit Plans and TSP — Exempt
The following are fully exempt from Kansas income tax:
- Survivor Benefit Plan (SBP), RCSBP, and RSFPP annuities
- Thrift Savings Plan (TSP) dividends and distributions
- VA disability compensation (also federally exempt)
- Dependency and Indemnity Compensation (DIC)
- Military Disability Retirement Pay
Active Duty Special Pay Exclusions
Active duty service members may subtract certain types of special pay from Kansas adjusted gross income, including recruitment and retention bonuses, amounts received to repay student loans, and death benefit payments. These amounts, when included in federal adjusted gross income, can be deducted on the Kansas return.
Kansas National Guard Bonuses — Exempt
Kansas Army and Air National Guard recruitment and retention bonuses are fully exempt from Kansas income tax.
Sales Tax Exemption — New July 1, 2026
Effective July 1, 2026, Kansas implements a new sales tax exemption specifically for veterans with a 100% permanent total service-connected disability rating, or those declared unemployable by the VA. This is one of the most significant new veteran benefits enacted in Kansas in recent years.
What the exemption covers:
- Exempt from Kansas sales tax on eligible purchases up to $24,000 per calendar year
- Applies to property and services for the personal use of the eligible veteran, their spouse, or household members
- Sales made by the veteran’s spouse or an authorized household member on the veteran’s behalf also qualify
- The exemption transfers to an unremarried surviving spouse if the veteran was receiving it at the time of death
What the exemption does not cover:
- Tobacco and electronic cigarettes
- Alcoholic beverages
- Motor vehicles
- Purchases intended for income-generating purposes
Surviving spouses of veterans who pass away on or after July 1, 2026 and who were eligible for the exemption may continue to receive it until they remarry. Veterans who passed away before July 1, 2026 do not qualify their surviving spouses for this exemption.
Kansas’s standard state sales tax rate is 6.5%, with local taxes adding up to 4% in some jurisdictions. At the state rate alone, $24,000 in exempt purchases saves approximately $1,560 per year.
Property Tax Benefits
Homestead Refund for Disabled Veterans — Income-Based
Kansas offers a homestead property tax refund for disabled veterans through the Senior or Disabled Veteran (SVR) property tax relief program. To qualify:
- Honorably discharged veteran with at least a 50% service-connected permanent disability rating, or
- Unremarried surviving spouse of a qualifying disabled veteran
- Kansas resident homeowner
- Home’s appraised value must be $350,000 or less
- Annual household income of $56,450 or less (VA disability, railroad retirement, and Social Security disability payments are excluded from this income calculation)
Qualifying veterans may receive a refund of a portion of their real estate taxes — the refund amount is calculated based on income and home value. Claims are filed with the Kansas Department of Revenue annually between January 1 and April 15 using Form K-40SVR.
The income exclusion for VA disability payments is significant: a veteran whose only or primary income is VA disability compensation may qualify at higher household income levels because those payments are excluded from the calculation.
Education Benefits
Kansas Hero’s Scholarship Act
The Kansas Hero’s Scholarship Act (KSA 75-4364) provides tuition waivers for eligible dependents and spouses of certain deceased or severely disabled veterans at Kansas state institutions. This waiver covers tuition and fees, providing meaningful education access for military families who have paid the highest price for their service. Contact the Kansas Board of Regents or individual institution financial aid offices for current eligibility details and application requirements.
Kansas National Guard Educational Assistance Program
Kansas National Guard members in good standing receive tuition waivers through the Kansas National Guard Educational Assistance Program. The waiver may cover all or a portion of tuition at the full-time, in-state rate at Kansas state colleges and universities. Guard members pursuing graduate education through the EMERGE program may receive tuition and fees covered for up to 15 credit hours per semester toward a master’s degree at a Kansas postsecondary institution, with a service obligation required. Application deadlines vary by semester — Fall: June 15; Spring: November 15; Summer: April 15.
Kansas GI Bill Programs
Kansas state colleges and universities participate in federal GI Bill programs including the Post-9/11 GI Bill and Yellow Ribbon Program. The Kansas Board of Regents provides guidance on state-level education benefits for veterans. Contact the Kansas Board of Regents or individual school veterans services offices for current state-level scholarship and fee waiver programs.
Employment Benefits
State Employment Preference
Kansas provides veteran preference in state government employment. Eligible veterans — those who served on active duty and received a campaign medal, have a service-connected disability, retired as an O-3 or below, or are the spouse of a 100% disabled veteran — may receive preference for state positions. This includes preference for employment, promotional opportunities, and higher retention standing in the event of layoffs. Eligible veterans and their spouses receive an interview guarantee and serious consideration for positions they apply for. Spouses of eligible veterans receive the same hiring preference as the veteran.
Kansas Public Employees Retirement System (KPERS) Military Service Credit
Veterans employed in Kansas state government may be eligible to purchase military service credit toward the Kansas Public Employees Retirement System for their active duty service. Contact KPERS directly for current credit purchase rates and eligibility requirements.
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Kansas Veterans Homes
Kansas operates three state veterans homes providing long-term care for eligible veterans:
- Kansas Soldiers’ Home, Fort Dodge
- Kansas Veterans’ Home, Winfield
- Kansas State Veterans’ Cemetery, Winfield (burial services)
- Kansas Veterans’ Home, Topeka
Eligibility for the veterans homes is based on honorable discharge, Kansas residency, and need for the level of care provided. Contact the Kansas Commission on Veterans Affairs for admission criteria and availability.
Emergency Financial Assistance
The Kansas Commission on Veterans Affairs Office (KCVAO) coordinates emergency financial relief programs for Kansas veterans and their families facing hardship. County Veterans Service Officers can connect veterans with local emergency assistance resources, VSO-sponsored relief funds, and state programs. Contact your county Veterans Service Officer for available resources in your area.
Vehicle and License Plate Benefits
Kansas offers veteran-designated and disabled veteran license plates for eligible veterans. Specific plate options, associated fees, and documentation requirements are administered by the Kansas Department of Revenue Division of Vehicles. Disabled veteran license plates may provide parking accommodations and other privileges — contact the Division of Vehicles for current plate options.
Recreation Benefits
Kansas provides hunting and fishing license benefits for qualifying veterans through the Kansas Department of Wildlife and Parks. Veterans with service-connected disabilities may qualify for reduced-fee or free licenses depending on their disability rating. Active duty members stationed in Kansas may be eligible for resident license rates. Contact the Kansas Department of Wildlife and Parks for current license fee schedules and veteran eligibility details.
Surviving Spouse Benefits
Unremarried surviving spouses of qualifying veterans share in several Kansas benefit programs. The homestead property tax refund is available to unremarried surviving spouses meeting the income and property value requirements. Beginning July 1, 2026, surviving spouses of veterans who were receiving the sales tax exemption at the time of death continue to receive it until they remarry. SBP and DIC payments are fully exempt from Kansas income tax.
How to Access Kansas Veteran Benefits
The Kansas Office of Veterans Services (KOVS) and county Veterans Service Officers provide free assistance to veterans and their families with accessing state and federal benefits.
- Kansas Office of Veterans Services: kovs.ks.gov
- Sales tax exemption (July 2026): Contact the Kansas Department of Revenue for exemption certificate process
- Homestead property tax refund: File Form K-40SVR with the Kansas Department of Revenue by April 15
- Hero’s Scholarship: Contact the Kansas Board of Regents or individual institution financial aid offices
- National Guard education: Contact your unit’s education officer or the Kansas Adjutant General’s Department
- State employment preference: Contact the Kansas Department of Administration, Division of Personnel Services
This article is provided by USMilitary.org, an independent educational resource. We are not affiliated with the Kansas Office of Veterans Services, the VA, or any government agency. Benefits are subject to change — verify current program details at kovs.ks.gov.
Frequently Asked Questions
No. Kansas fully exempts military retirement pay, TSP dividends, SBP annuities, and VA disability compensation from state income tax. No state income tax applies to these forms of military compensation.
Beginning July 1, 2026, veterans with a 100% permanent total service-connected disability rating (or individual unemployability) are exempt from Kansas sales tax on eligible purchases up to $24,000 per year. The exemption does not cover tobacco, alcohol, or motor vehicles. An unremarried surviving spouse may continue the exemption if the veteran was receiving it at the time of death.
Veterans with at least a 50% permanent service-connected disability and annual income of $56,450 or less (VA disability income excluded) may claim a homestead property tax refund on homes appraised at $350,000 or less through Form K-40SVR. The refund amount scales with income and home value.
The Kansas Hero’s Scholarship Act provides tuition waivers at Kansas state institutions for eligible dependents and spouses of deceased or severely disabled veterans. Contact the Kansas Board of Regents or individual school financial aid offices for specific eligibility criteria and application procedures.