The earnings tax (sometimes referred to as “e-tax”) is a 1 percent tax on an individual’s earned income such as salaries, wages, commissions, tips and other compensation. It generates revenue that pays for a wide variety of city services used by all those who live and work in Kansas City, Missouri. In addition to helping fund basic operations such as repairing roads and weekly trash collection, the revenue from the earnings tax also pays for police officers, firefighters, paramedics and ambulance services. Revenue from the earnings tax also helps fund snow removal, codes inspection, historic preservation and other city needs.

The earnings tax generates approximately $292.2 million annually and is paid by all businesses and people who live or work in Kansas City, Mo.

View the E-Tax Facts!

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.

You can file online.

Who Does Not Pay Earnings Tax?

Retirees whose income is from Social Security, pensions, retirement accounts and other non-earned income sources do not pay the e-tax. Others who are exempt include active military in combat zones and non-profits.