AN ACT relating to the taxation of retirement distributions.

HB 183 increases Kentucky's tax exclusion for retirement income from $31,110 to $41,110 annually for tax years beginning January 1, 2027. It directly affects Kentucky residents receiving retirement distributions from pension plans, annuities, or retirement accounts by allowing more income to be tax-free. The key change raises the threshold at which these distributions become subject to state income tax. This policy adjustment applies automatically to qualifying retirement income without requiring additional filings or eligibility checks.