Tax Planning for Physicians in Kansas City (2026)
Kansas City straddles two states. Kansas City, Missouri levies a 1% earnings tax; Kansas City, Kansas does not. Where you live and where you work on each side of State Line Road changes both your state and your city tax.
2026 at a glance
| KCMO earnings tax | 1% on residents' earnings everywhere and nonresidents' earnings in KCMO |
|---|---|
| Applies to practice profits | Yes, net profits of businesses |
| Missouri top rate | 4.7% |
| Kansas top rate | 5.58% |
Planning priorities
- A Kansas resident who works at a hospital in Kansas City, Missouri owes the 1% earnings tax on that work and files a Missouri nonresident return, with a Kansas credit for the Missouri tax.
- Kansas City, Missouri residents owe the earnings tax even on work done in Kansas.
- Practices and partnerships doing business in KCMO file a profits return even in a loss year.
- Voters renew the earnings tax every five years; the latest vote was scheduled for April 2026.
See the full Missouri physician tax guide.
More physician tax guides
- Other Missouri cities: St. Louis, Springfield, Columbia.
- State rules: Missouri physician tax guide and all 50 state guides.
- By specialty: Gastroenterologists, Psychiatrists, Anesthesiologists, Dentists and every specialty.
- Core strategy: tax planning for physicians, tax planning for medical practice owners, advanced strategies for high-income physicians and S corporation tax planning for physicians, plus the physician tax glossary.
Frequently asked questions
Does Kansas City, Kansas have an earnings tax?
No. The 1% earnings tax is levied by Kansas City, Missouri.
Get a tax plan built for your situation
GenWealth 360 builds proactive, tax-first plans for physicians, dentists and medical practice owners in all 50 states. Start with a conversation about your income, entity and goals.
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Sources
This article is for general educational purposes and is not tax, legal or investment advice. Tax law changes often and its application depends on your facts. Figures reflect 2026 rules as published by the sources listed above. Consult a qualified professional before acting. See our editorial policy.