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

Both states — credit offsets the double taxKansas withholds

Answer

Expect withholding in Kansas and a return in both. Maryland and Kansas hold no reciprocal agreement, so the overlap is resolved after the fact: Kansas taxes the Kansas-source wages, and your Maryland resident return claims a credit for that tax against the Maryland liability on the same income.

Last verified

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

A Maryland resident taxed by another state on the same income claims the credit for taxes paid to other states on Form 502CR. The credit is capped at the Maryland 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 · KansasForm K-40 with Schedule S Part B

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

  2. 2Resident return · MarylandForm 502CR

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

The two states, side by side

 MarylandKansas
Taxes wagesYes — graduatedYes — graduated
Reciprocity partners4 (Form MW507)None
Convenience ruleNoNo
Nonresident returnForm 505 with Form 505NRForm K-40 with Schedule S Part B
Credit for other-state taxForm 502CRForm K-40 (credit for taxes paid to other states)
Nonresident safe harbourNone publishedNone published
Local income taxYesNo
Revenue departmentComptroller of MarylandKansas Department of Revenue
Last verified

The other direction

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

Kansas to Maryland →

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 Maryland pairs

Questions people actually ask

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

Expect withholding in Kansas and a return in both. Maryland and Kansas hold no reciprocal agreement, so the overlap is resolved after the fact: Kansas taxes the Kansas-source wages, and your Maryland resident return claims a credit for that tax against the Maryland liability on the same income.

Which state should my employer be withholding for?

Kansas. The wages are sourced to Kansas, so Kansas withholding is correct and there is no Maryland 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. Maryland gives residents a credit for tax paid to Kansas on the same income, claimed on Form 502CR. The credit is capped at the Maryland tax on that income, so if Kansas taxes it more heavily the excess is not refunded by either state.

How current is this?

The Maryland and Kansas rules on this page were last checked against Comptroller of Maryland and Kansas Department of Revenue 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.