That's pretty much what happens living in Kansas working in Missouri, Those 2 numbers though however are essentially the same, so (in this case) MO gets $5k, KS $500. The point I was making was more how regardless of whether you work in KC, or live in KC, you pay that tax. If your KS tax = MO tax, you'd only pay one in the state you worked in, not both. I understand fundamentally why KC does it, and why the states do what they do, it's just there is no equivalent "Overland Park" income tax to send my taxes to, and if there was, it would suck ass to pay a .5% OP income tax for example and 1% KC income tax cause I live in one, work in the other, a not really have a formal way to say "hey OP, I paid $1k to KCMO, so I don't owe you $500" if OP had a similar rule. Honestly, KCMO having an income tax was a little bit weird for me to learn when I first started out as an intern. I didn't even know cities having an income tax was a thing.