Kansas City levies a 1% earnings tax on residents and on non-residents working within city limits under Code Chapter 68, plus a graduated business profits tax on entities operating in KC, distinguishing it from most Missouri cities.
Kansas City and St. Louis are the only Missouri cities authorized to impose an earnings tax under state law. The KC earnings tax is 1% on wages of residents (regardless of where earned), wages of non-residents earned within city limits, and net business profits of businesses operating in Kansas City. Voters must reauthorize the tax every five years; it was renewed in April 2026 with strong support. The Revenue Division administers collection, and major employers withhold the tax through payroll. Refunds are available for non-residents who worked outside KC during the year. Missouri House Bill 1175 (2022) tightened remote-work refund rules. The tax funds approximately 40% of the General Fund, supporting basic services.
Failure to file or pay results in interest, penalties, and Revenue Division collection actions including liens and wage garnishment.
Kansas City, MO
Kansas City hotel guests pay roughly 17% combined tax on room rates, including state sales tax, local sales tax, a 7.5% Convention and Tourism tax, and the J...
Kansas City, MO
Missouri Revised Statutes §285.055 prohibits Kansas City from setting a minimum wage above the state floor of $12.30 per hour, indexed annually. A 2017 court...
See how Kansas City's business tax classification rules stack up against other locations.
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