The 1% in one line
Kansas City, Missouri residents pay 1% on all their earnings, wherever they work. Nonresidents pay 1% on what they earn for work done inside city limits, and employers withhold it on that portion of pay. The tax goes back to voters for renewal every few years; the City's earnings tax page carries its current status.
Crews that cross the city line
A crew that works some days in Kansas City and some outside it is the normal case for a contractor. The City's construction tax guide allows nonresident withholding to be apportioned by prior-year experience, by actual daily work location, or by withholding on everything and letting employees claim refunds. Whichever you use, keep the records for five years.
Nonresident employees who had tax withheld for days worked outside the city can file the RD-109NR schedule with the employer's signature to claim it back.
The employer filings
Withholding is remitted on the same schedule as your Missouri state withholding. The RD-110 is filed every quarter for employees who work in Kansas City, even when nothing was withheld, and the RD-113 annual reconciliation with W-2 data is due by January 31.
- RD-110 quarterly, electronically
- RD-113 and W-2 data by January 31
- Records of work location kept five years
The profits tax
Businesses pay 1% of net profits on the RD-108, due April 15 (105 days after year-end for fiscal years), and must file even with a loss. For long-term contracts, the City's construction guide allows reporting by percentage of completion or completed contract. Planning for it starts on our construction tax page.
The business licence
Contractors doing business in the city hold a City business licence (RD-100), renewed by March 1 with a fee based on prior-year gross receipts. Payments to subcontractors who hold their own City licence can be deducted, so check each sub's licence before you count it. Construction companies also show proof of workers' compensation insurance.
Filing through QuickTax
Since January 1, 2025, every Kansas City, Missouri tax return, including the RD-108 and RD-109, is filed electronically through the City's QuickTax system. Kansas City, Kansas is a separate city; we confirm its rules per job rather than assume them.
Sources
- City of Kansas City, Missouri: earnings tax
- City of Kansas City, Missouri: tax guide for construction
- City of Kansas City, Missouri: tax form descriptions
Figures checked against the sources above in October 2026. Rules change; confirm with the agency, your CPA or counsel before you act. This guide is general information, not tax or legal advice.
Up one level Contractor payroll and certified payroll Crew payroll in two states, with the KCMO earnings tax withheld correctly.