Despite sharing one of the country's largest bi-state metro areas, Missouri and Kansas have never enacted a reciprocity agreement. The revenue imbalance — more Kansas residents work in Missouri than vice versa — has made negotiations difficult. Without reciprocity, cross-border commuters in the KC metro file dual returns every year.
| Filing obligation | State | Form |
|---|---|---|
| Nonresident income tax return | Missouri | MO-1040 (nonresident) |
| Resident income tax return | Kansas | K-40 |
| Credit for MO taxes paid | Claimed on K-40 | Schedule S (KS) |
| Kansas City earnings tax | Kansas City, MO | RD-109 (if working in KCMO) |
How does the Kansas credit prevent double taxation?
Kansas taxes its residents on all income worldwide. Missouri taxes nonresidents on MO-source income. Kansas provides a credit for income taxes paid to other states on income also taxed by Kansas. The credit equals the lesser of the MO tax paid or the KS tax on that same income.
(Verify KCMO earnings tax at kcmo.gov.)
What is the Kansas City earnings tax and how does it affect KS commuters?
Kansas City, Missouri imposes a 1% earnings tax on all wages earned within city limits. This applies to residents and nonresidents alike — including Kansas residents who commute to jobs in KCMO. The tax is withheld by employers located in KCMO.
This 1% is a local tax separate from Missouri's state income tax. It is not offset by the Kansas credit for state taxes paid. You pay it in addition to your state tax obligation. Kansas does not give you credit for it because it is a local tax, not a state income tax.
If you work in a Missouri location outside Kansas City limits, the KCMO earnings tax does not apply.
How do I set up withholding correctly?
Your Missouri employer should withhold Missouri state income tax. If you work in KCMO, they should also withhold the 1% earnings tax. Whether they withhold for Kansas depends on the employer — many do not. You may need to make Kansas estimated tax payments to avoid an underpayment penalty at filing time.
What if I work remotely from Kansas for a Missouri employer?
Days worked from your Kansas home are Kansas-source income, not Missouri-source. Only days physically worked in Missouri are MO-source. For hybrid workers, tracking workdays by location reduces your Missouri nonresident obligation. If you work 100% from Kansas for a MO employer, you may have little or no MO filing obligation (though withholding corrections may be needed).
Compare take-home estimates using the MO salary calculator and KS salary calculator. For the full reciprocity list, see the hub page.
How do I handle withholding correctly across the KC metro?
Your Missouri employer should withhold Missouri state income tax. If you work within Kansas City, MO limits, they should also withhold the 1% earnings tax. Whether they additionally withhold for Kansas depends on the employer — many do not. You may need to make Kansas estimated tax payments (Form K-40ES) quarterly to avoid an underpayment penalty at filing time.
If your employer only withholds Missouri tax and not Kansas, your Kansas return will show a balance due. The Kansas credit for Missouri tax paid will offset most of it, but timing matters — you may need to pay Kansas estimated taxes throughout the year to stay current.
What if I work in Missouri outside Kansas City — does the earnings tax still apply?
The 1% earnings tax applies only within Kansas City, Missouri city limits. If you work in a Missouri suburb like Lee's Summit, Independence, Blue Springs or anywhere outside KCMO proper, the earnings tax does not apply. You still file dual state returns (MO nonresident + KS resident) and claim the Kansas credit, but without the additional 1% local layer.
What about remote work from Kansas for a Missouri employer?
Days worked from your Kansas home are Kansas-source income, not Missouri-source. Missouri can only tax wages from days you physically work in Missouri. For hybrid workers, tracking workdays by location can significantly reduce your Missouri nonresident tax. If you work 100% remotely from Kansas, you may have minimal or no Missouri filing obligation — though you should still verify with both states' revenue departments.
For the full list of cross-border arrangements, see the reciprocity hub. Compare take-home using the MO salary calculator and KS salary calculator.
Questions
Frequently asked questions
Why is there no Missouri-Kansas reciprocity agreement?
Despite sharing one of the country's largest bi-state metro areas, Missouri and Kansas have never enacted a reciprocity agreement. The revenue imbalance — more Kansas residents work in Missouri than vice versa — has made negotiations difficult. Without reciprocity, cross-border commuters in the KC metro file dual returns every year.
How does the Kansas credit prevent double taxation?
Kansas taxes its residents on all income worldwide. Missouri taxes nonresidents on MO-source income. Kansas provides a credit for income taxes paid to other states on income also taxed by Kansas. The credit equals the lesser of the MO tax paid or the KS tax on that same income.
What is the Kansas City earnings tax and how does it affect KS commuters?
Kansas City, Missouri imposes a 1% earnings tax on all wages earned within city limits. This applies to residents and nonresidents alike — including Kansas residents who commute to jobs in KCMO. The tax is withheld by employers located in KCMO.
How do I set up withholding correctly?
Your Missouri employer should withhold Missouri state income tax. If you work in KCMO, they should also withhold the 1% earnings tax. Whether they withhold for Kansas depends on the employer — many do not. You may need to make Kansas estimated tax payments to avoid an underpayment penalty at filing time.
What if I work remotely from Kansas for a Missouri employer?
Days worked from your Kansas home are Kansas-source income, not Missouri-source. Only days physically worked in Missouri are MO-source. For hybrid workers, tracking workdays by location reduces your Missouri nonresident obligation. If you work 100% from Kansas for a MO employer, you may have little or no MO filing obligation (though withholding corrections may be needed).
- 🔄 Last updated July 31, 2026 · Tax year 2026
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