Kansas Bill Proposes Earnings Tax for Non-Residents

Local governments could impose up to 1% tax with voter approval

Feb. 3, 2026 at 8:31pm

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A new bill in the Kansas legislature would allow cities and counties to impose an earnings tax on people who work in the jurisdiction but live elsewhere, but only if approved by voters. The tax could be up to 1% and would require a public vote every 10 years to remain in place.

Why it matters

This proposal aims to give local governments in Kansas a new revenue source, potentially reducing the burden on property taxes. However, it faces challenges as an earnings tax on non-residents, which some may view as unfair.

The details

House Bill 2385 would enable cities and counties in Kansas to ask voters whether they want to impose an earnings tax on non-resident workers. If approved, the tax could be set at up to 1% and would apply only to those who live outside the jurisdiction. Communities would have to put the question back on the ballot every 10 years to keep the tax. The revenue would have to be used for infrastructure projects in cities, and general operations in counties, with at least half going towards property tax reductions.

  • The bill is scheduled for a hearing on Thursday, February 5, 2026 at 3:30 p.m. in Room 346-S at the Kansas Statehouse in Topeka.

The players

Kansas Legislature

The state legislature of Kansas, which is considering House Bill 2385 to allow local earnings taxes.

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What’s next

If the bill passes, cities and counties in Kansas would need to put the earnings tax proposal on the ballot for voter approval before being able to implement it.

The takeaway

This proposal highlights the ongoing challenge for local governments to find new revenue sources, especially from non-resident workers who utilize local services. The requirement for voter approval aims to balance local needs with taxpayer concerns about fairness.