Kansas City, Missouri requires rental property owners to register and hold an annual Healthy Homes rental permit, at a $20 one-time application fee plus $20 per unit per year.
Kansas City adds a yearly rental permit and, for rentals run as a business, a city earnings tax. Both are small, but both are ongoing costs of owning there. For the Missouri rules that apply statewide, see DSCR loans in Missouri.
Do Kansas City rentals need a permit?
Yes. Kansas City requires rental property owners to register and hold an annual Healthy Homes rental permit under Ordinance 180248, with a $20 one-time application fee plus $20 per unit per year, and permits run January 1 to December 31.
- The application must be filed before a new rental opens.
Exception: Program rules can change. Check the city's program page for your property.
According to KCMO Health Department, Healthy Homes Rental Inspection Program, as of October 2026.
Does Kansas City's earnings tax apply to rental income?
Kansas City's 1% earnings tax applies to net profits from rental real estate to the extent the rental is a business activity, with factors including whether an entity holds the property and the owner's involvement in management, according to the city's tax guide for rental businesses.
- Residents pay on all net profits from rental real estate business activities; nonresidents pay only on activity in Kansas City.
- A city business license is also required when the owner is active in managing the rental.
Exception: Whether your rental counts as a business activity is a tax question. Ask your CPA, and confirm the earnings tax remains in effect for the current year.
According to KCMO Finance, Tax Guide for Rental Businesses, as of October 2026.
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This page is general education about business-purpose real estate financing and state law as published by official sources on the date shown. It is not legal, tax or lending advice, not an offer to lend and not a rate quote. Laws and lender guidelines change; confirm current rules with the lender, the title company and your own attorney or tax adviser.