City Gig Tax Guide
Kansas City Gig Worker Taxes
Kansas City, Missouri charges a 1% earnings tax — the 'E-Tax' — that catches gig workers in a way many don't expect, since it applies to self-employment earnings, not just employee wages. It sits on top of Missouri state income tax and the federal 15.3% self-employment tax. Here's who owes it and how to handle it.
← Part of the complete Gig Worker Taxes guideHow gig taxes work for Kansas City workers
You're an independent contractor — nothing is withheld
Gig platforms pay you as a 1099 contractor, not an employee, so no income or payroll tax comes out of your payouts. You're responsible for setting aside and paying your own taxes.
Federal self-employment tax is 15.3%
That's 12.4% Social Security + 2.9% Medicare on your net earnings — the employer-plus-employee share that a regular job would split with you. It applies in every state, on top of federal income tax.
Federal income tax applies to your net profit
After deductions, your net gig profit is added to your other income and taxed at your federal rate. You can deduct half of your self-employment tax when figuring federal income tax.
Report all income — even without a 1099
You must report every dollar you earn whether or not a platform sends a 1099-NEC or 1099-K. Reporting thresholds for the forms change year to year; your obligation to report does not.
Does Kansas City have a local tax for gig workers?
Yes. Kansas City, Missouri levies a 1% earnings tax — often called the 'E-Tax' — that applies to gig earnings. For residents it applies to all earnings, including the net profit of a self-employed gig worker; for nonresidents it applies to earnings from work performed within the city. Self-employed workers report it on the city's profits return.
The earnings tax is on top of Missouri's state income tax and the federal 15.3% self-employment tax. It's administered by the Kansas City Revenue Division, separately from your state and federal filings, and because nothing is withheld from gig payouts you're responsible for paying it yourself.
The 1% rate is long-standing, but filing details and the exact definition of taxable earnings can change, so confirm current requirements with the Kansas City Revenue Division or a tax professional. (St. Louis, Missouri has a similar 1% earnings tax if you work there instead.)
This earnings tax (E-Tax) is a local tax on top of federal and Missouri state tax — the 15.3% federal self-employment tax is the same everywhere, and your state tax is a separate layer.
What Kansas City gig workers can deduct
Business mileage
Every mile driven while online or on a job, deducted at the IRS standard mileage rate. Usually the single largest deduction — keep a contemporaneous log.
Phone & data
The business-use percentage of your phone and data plan — you cannot accept jobs without it.
Supplies & equipment
Insulated bags, phone mounts, chargers, and other gear bought specifically for the work.
Tolls & parking
Tolls and parking paid while working are deductible (ordinary commuting tolls are not).
The same deductions that lower your federal and state tax also lower the net profit your local tax is figured on. Keep a contemporaneous mileage log and save receipts either way.
Quarterly estimated taxes
Because no tax is withheld from your payouts, the IRS expects you to pay as you go through quarterly estimated payments rather than one lump sum in April. If you expect to owe $1,000 or more in federal tax for the year, paying quarterly avoids an underpayment penalty.
Federal estimated payments are generally due around April 15, June 15, September 15, and January 15 of the following year. Missouri expects its own state estimates on a comparable schedule, and Kansas City's local tax may have its own filing and payment requirements — see the city and state resources below for the exact forms and due dates.
Frequently asked questions
What is the Kansas City earnings tax?
It's a 1% local tax (the 'E-Tax') on earnings in Kansas City, Missouri. Residents pay it on all earnings — including a self-employed gig worker's net profit — and nonresidents pay it on earnings from work performed in the city. It's on top of Missouri state income tax and federal tax.
Do self-employed gig workers pay the KC earnings tax?
Yes. The earnings tax reaches self-employment income: residents owe 1% on their net business profit, and nonresidents owe 1% on profit from work performed in Kansas City. Self-employed workers report it on the city's profits return rather than having it withheld.
What if I work in Kansas City but live elsewhere?
Nonresidents owe the 1% earnings tax on earnings from work performed within Kansas City. If you split your gig work between the city and elsewhere, only the city-sourced portion is subject — confirm how to apportion it with the Kansas City Revenue Division.
Is the earnings tax on top of Missouri state tax?
Yes. The 1% earnings tax is a city tax that applies in addition to Missouri's state income tax and the federal income and 15.3% self-employment taxes. Gig workers in Kansas City can face all three.
How much should I set aside for taxes in Kansas City?
Beyond the common 25–30% for federal income tax and the 15.3% self-employment tax, add Missouri's state income tax and the 1% Kansas City earnings tax. Use the Tax Set-Aside calculator for a tailored figure and confirm the current city requirements with the Revenue Division.
Authoritative resources
Federal (IRS)
- IRS: Self-Employed Individuals Tax Center ↗
- IRS: Self-Employment Tax (Social Security and Medicare) ↗
- IRS: Estimated Taxes ↗
- IRS: Standard Mileage Rates ↗
Kansas City & Missouri tax agencies
Free calculators
Stop guessing what you owe
UnifyOne tracks your gig earnings, mileage, and tax set-aside automatically — so quarterly taxes in Kansas City are never a surprise.
This guide is educational information, not tax advice. Federal, state, and local tax rules, rates, thresholds, and the IRS standard mileage rate change yearly — confirm current figures with the IRS, the Missouri tax agency, the Kansas City revenue office, or a qualified tax professional for your situation.