The failed proposal would allow eligible active-duty service members to subtract capped military compensation when calculating Kansas income tax for later tax years.
The proposal would let eligible active-duty service members subtract military pay and related compensation up to a senior enlisted pay limit when figuring Kansas income tax.
Kansas taxpayers would subtract some active-duty military compensation from federal adjusted gross income when calculating Kansas income tax. The provision covers uniformed members serving on active duty in the Army, Navy, Air Force, Coast Guard, Marine Corps or Space Force, including active-duty reserve and National Guard members. The subtraction would cover pay, bonuses, reimbursements and other compensation for military service. The subtraction would be limited to the amount of pay set for a senior enlisted service member by the U.S. Department of Defense for that tax year. The subtraction would apply to tax years beginning after December 31, 2025, if the proposal became law.
No hearings or votes scheduled.