KANSAS CITY EARNINGS TAX

When you move to Kansas City, there is no notification that this is a tax you must pay. Most self-preparation software does not address this local tax and we have seen significant tax bills as a result. Kansas City 1% tax is assessed to certain individuals and businesses based on where they live or work.

Who pays the earnings tax? All Kansas City, Missouri, residents are required to pay the earnings tax, even if they work outside the city. Nonresidents are required to pay the earnings tax on income earned within Kansas City, Missouri, city limits. The tax also applies to the net profits of businesses.

Can't my job just take it out? Businesses located inside Kansas City, Missouri, should withhold the 1% tax on your paycheck. Sometimes businesses located elsewhere will do it as a courtesy. It is important that you research this information on day 1 of your job. If you are subject to the tax and it is not being withheld, the full responsibility of paying the tax will fall to you at season's end and the penalties and interest on this tax are quite excessive. An individual may be paid by other than a W2 and still be subject to the tax.