Missouri Local Income Tax Guide 2026: St. Louis & Kansas City Earnings Tax Explained

Missouri has an unusually simple local income tax picture compared to states like Kentucky, Ohio, or Pennsylvania: only two cities in the entire state levy a local earnings tax — St. Louis City and Kansas City — and both charge exactly 1%.

That simplicity belies some genuine complexity in who owes. Both cities tax their own residents on all earned income regardless of where the work is performed, and tax non-residents on income earned within city limits. The April 2026 ballots in both cities renewed these taxes overwhelmingly — St. Louis passed with approximately 85% approval on April 8, 2026.

Remote work has added a new layer of questions: if you live outside Kansas City but work for a KC employer from home, do you owe the KC earnings tax? Generally, no — Missouri local taxes follow physical work location, not the employer's address.

St. Louis City Earnings Tax 2026

The St. Louis City earnings tax is administered by the St. Louis Collector of Revenue.

Who Owes

• Residents: All St. Louis City residents pay 1% on all earned income — regardless of where the work is performed. A St. Louis resident commuting to a job in the county still owes the full 1%.
• Non-residents: Pay 1% only on income earned for work physically performed within St. Louis City limits. If you live in Clayton (St. Louis County) and commute to a St. Louis City office, you owe 1% on those wages.
• Retired/unemployed: The earnings tax does not apply to Social Security, pensions, retirement account withdrawals, or passive investment income.

How to File

Non-residents who worked partly outside the city file Form E-1 with a non-residency deduction on the back. Employees who believe their employer withheld too much (e.g., days worked outside the city) file Form E-1R (refund claim), which must be verified by the employer.

Deadline: April 15 — no extensions are allowed. This is stricter than federal and Missouri state returns, which allow 6-month extensions.

Note on St. Louis City vs St. Louis County: These are two entirely separate jurisdictions. St. Louis City is an independent city, not part of St. Louis County. Clayton, Kirkwood, and other St. Louis County municipalities owe no St. Louis City earnings tax unless employees physically work inside city limits.

Kansas City Earnings Tax 2026

The Kansas City earnings tax is administered by the Kansas City Revenue Division (part of the Finance Department).

Who Owes

• Residents: All Kansas City residents pay 1% on all earned income, including income from work performed outside the city. A KCMO resident working remotely from home in Kansas City for an out-of-state employer still owes the 1% earnings tax on all wages.
• Non-residents: Pay 1% on income earned for work physically performed within Kansas City limits. Most employers inside KC withhold automatically; employers outside KC do not.
• Retired/unemployed: Pension income, Social Security, and retirement account distributions are generally exempt.

How to File

Filing is done online through the Quick Tax portal at kcmo.gov/quicktax. As of January 1, 2025, all KCMO tax returns must be filed electronically — paper forms are no longer accepted.

• Form RD-109: Individual earnings tax return (residents and non-residents who worked in KC)
• Form RD-108: Business profits tax return for self-employed individuals

Deadline: April 15. Unlike federal taxes, Kansas City does not accept extensions for the earnings tax.

Remote Workers and the Kansas City Earnings Tax

If you live in Overland Park, KS or Lee's Summit, MO and work 100% remotely for a Kansas City employer without physically entering KC, you generally do not owe the KCMO earnings tax. Kansas City does not assert the "convenience of the employer" doctrine used by New York. Your earnings tax liability follows where the work was actually performed. Employees splitting time between a KC office and a home outside the city limits should document their days and can prorate income accordingly on Form RD-109.

April 2026 Renewals: What Changed (Nothing)

Both city earnings taxes are subject to periodic voter renewal under Missouri law — they cannot be levied indefinitely without approval. Both were renewed decisively in April 2026:

• St. Louis City: Voters approved renewal on April 8, 2026 with approximately 85% in favour. The rate remains 1%. The earnings tax generates roughly $180 million annually for St. Louis City, funding approximately one-third of the city's general operating budget.
• Kansas City: Also renewed in April 2026 with strong approval. The KC earnings tax generates approximately $300 million annually, funding police, fire, parks, and infrastructure.

The renewals mean both taxes are locked in for another 5 years. No rate changes were proposed or approved in either election.

Missouri State Income Tax: The Backdrop

Missouri's state income tax uses a graduated scale. For 2026, the top rate is 4.8% on taxable income over $9,072 (Missouri has been gradually reducing its top rate — it was 5.4% in 2022). Combined with the 1% earnings tax for Kansas City or St. Louis residents, the top combined state + local rate is approximately 5.8%.

This compares favourably to:

• California: up to 14.4% state + no major local income tax
• New York City: up to 14.8% combined state + city
• Illinois: 4.95% flat state + no local income tax (slightly below Missouri all-in for KC/STL residents)

Missouri has no general local earnings tax outside St. Louis and Kansas City. Workers in suburban St. Louis County, Springfield, Columbia, or anywhere else in Missouri owe only the state tax.