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Missouri wants to buck income tax; Kansas has an even split

Missouri wants to buck income tax; Kansas has an even split
Illustration: Axios Visuals

America's states are splitting into two tax camps, income-reliant and sales-reliant, and Kansas runs one of the most evenly split tax systems in the country. Why it matters: State budgets are built around what to tax — paychecks or purchases — and that choice decides which residents feel it most. By the numbers: Income taxes made up 46% of Kansas' $13.1 billion in fiscal 2025 collections and sales and gross receipts taxes made up 43.1%, a gap of...

America's states are splitting into two tax camps, income-reliant and sales-reliant, and Kansas runs one of the most evenly split tax systems in the country.

Why it matters: State budgets are built around what to tax — paychecks or purchases — and that choice decides which residents feel it most.

By the numbers: Income taxes made up 46% of Kansas' $13.1 billion in fiscal 2025 collections and sales and gross receipts taxes made up 43.1%, a gap of three points that ranks among the narrowest of any state, per an Axios analysis of new Census state tax data.

  • Missouri tilts further toward paychecks, drawing 52% of its $18 billion from individual and corporate income taxes against 43.3% from sales taxes.
  • Compare that with the extremes: Texas collects 86.6% of its revenue from sales taxes, while Oregon pulls 71% from income.
Data: U.S. Census; Note: Income tax includes individual and corporate taxes; Data for Hawai'i and Alaska starts in 1955 and 1957, respectively; Chart: Erin Davis/Axios Visual

State of play: Missouri's Aug. 4 election asks voters to vote yes or no on an amendment that would eliminate state income tax over time while increasing sales and use taxes.

  • Republican lawmakers who support the amendment say it's key for Missouri's economy and population, but opponents say it will hurt low-income families, per the Kansas City Star.

The intrigue: Differing policies even show up at metro grocery stores. Kansas eliminated its state sales tax on groceries in January 2025, while Missouri still charges 1.225% on food.

  • Taxes on spending hit lower-income families hardest because they spend more of what they earn.

What's next: Early voting in Missouri began Tuesday, two weeks ahead of the election.

  • The polls will be open Aug. 4 from 6am to 7pm.
Read full story on Axios

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