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Live in Kansas, Work in Arkansas: Which State Taxes Your Paycheck?

Both states — credit offsets the double taxArkansas withholds

Answer

Both states tax the same wages, and a credit undoes the overlap. Arkansas withholds as your work state and you file a Arkansas nonresident return; Kansas taxes residents on all income, so you also file at home and claim the credit for tax paid to Arkansas. File Arkansas first.

Last verified

Two states can lawfully tax the same wages: Arkansas because the work happened there, Kansas because you live there. Nothing prevents the overlap in advance — it is unwound afterwards, on the Kansas return, through the credit for taxes paid to another state.

A Kansas resident taxed by another state on the same income claims the credit for taxes paid to other states on Form K-40 (credit for taxes paid to other states). The credit is capped at the Kansas tax on that income, so it removes the double tax but never refunds the excess when the other state charges more.

What you file

  1. 1Nonresident return · ArkansasForm AR1000NR

    File the Arkansas nonresident return FIRST — you need the Arkansas tax figure before you can complete Kansas.

  2. 2Resident return · KansasForm K-40 (credit for taxes paid to other states)

    File a Kansas resident return reporting all income, then claim the credit for tax paid to Arkansas. The credit is capped at what Kansas would have charged on that same income, so if Arkansas taxes it at a higher rate the difference is not refunded.

The two states, side by side

 KansasArkansas
Taxes wagesYes — graduatedYes — graduated
Reciprocity partnersNoneNone
Convenience ruleNoNo
Nonresident returnForm K-40 with Schedule S Part BForm AR1000NR
Credit for other-state taxForm K-40 (credit for taxes paid to other states)Form AR1000TC
Nonresident safe harbourNone publishedNone published
Local income taxNoNo
Revenue departmentKansas Department of RevenueArkansas Department of Finance and Administration
Last verified

The other direction

Reversing the commute does not always reverse the answer. Living in Arkansas and working in Kansas gives:Both states — credit offsets the double tax.

Arkansas to Kansas →

Same two states, different situation

The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.

Other Kansas pairs

Questions people actually ask

I live in Kansas and work in Arkansas. Which state takes the tax out of my paycheck?

Both states tax the same wages, and a credit undoes the overlap. Arkansas withholds as your work state and you file a Arkansas nonresident return; Kansas taxes residents on all income, so you also file at home and claim the credit for tax paid to Arkansas. File Arkansas first.

Which state should my employer be withholding for?

Arkansas. The wages are sourced to Arkansas, so Arkansas withholding is correct and there is no Kansas withholding to set up.

Will I end up paying tax twice on the same income?

Not twice over, but you will pay the higher of the two rates. Kansas gives residents a credit for tax paid to Arkansas on the same income, claimed on Form K-40 (credit for taxes paid to other states). The credit is capped at the Kansas tax on that income, so if Arkansas taxes it more heavily the excess is not refunded by either state.

How current is this?

The Kansas and Arkansas rules on this page were last checked against Kansas Department of Revenue and Arkansas Department of Finance and Administration on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.

Sources

Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.