Kansas City, MO Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- License requirement
- Every business needs annual occupation license
- General rate start
- $25 fee on first $28,000 receipts
- Manufacturer rate
- Separate lower-rate schedule from $31,000
- Late penalty
- 5% per month late, up to 25%
- Named classifications
- Dozens of business types have own fee
Summary
Kansas City requires every business to buy an annual occupation license, taxed on a tiered gross-receipts schedule for general businesses, a lower-rate schedule for manufacturers, or a flat fee for specific named business classifications like accountants and amusement parks.
Except as otherwise provided in this article, the license fee computed upon the amount of annual gross receipts, annual gross business or annual gross commissions of the business, trade, profession or occupation ... shall be in accordance with the following schedule of rates ... The business classifications listed in the following sections shall pay a license fee as provided in this article.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 139 | Zoning and Development Code: Supplement 38).
Full Breakdown
Kansas City Code § 40-61 requires every business, occupation, pursuit, profession or trade operating in the city to hold an annual license unless exempt. Section 40-63 sets the tax two ways: general businesses pay a progressive rate starting at $25 on the first $28,000 of annual gross receipts plus $0.90 per $1,000 above that; manufacturers get a separate, lower-rate table starting at $31,000. Beyond that, dozens of named classifications carry their own fee tables set section by section, an accountant pays $50 to $150 a year based on staff size (§ 40-65), an amusement park pays $62.50 a month (§ 40-68), instead of the gross-receipts formula.
Violations & Fines
Failure to file or pay on time draws a penalty of 5% of the tax per month late, up to 25%, under Code § 40-12, enforced by the city's Commissioner of Revenue.
Frequently Asked Questions
Does Kansas City tax all businesses the same way?
What happens if I pay my Kansas City business license late?
Sources & Official References
Other rules in Kansas City
Compare Kansas City to another location·View the Missouri local taxes & fees overview
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Business Tax Classification in Nearby Cities
How other cities in Jackson County handle business tax classification.