Kentucky vs Missouri vs Kansas vs Oklahoma: Self-Employment Tax Compared
Four neighbouring states, four different tax shapes — and one identical federal layer on top. This hub puts the rates, local taxes, effective percentages and quarterly payments side by side so you can see exactly what changes when the state line moves.
Updated September 21, 2026 · 2026 estimates · By Javed Niamat
Start here: the layer that never changes
Before any state enters the picture, every freelancer in all four states pays the same federal bill: the 15.3% self-employment tax on 92.35% of net profit, plus federal income tax after the standard deduction and the deductible half of SE tax. On $78,000 of profit that federal stack is roughly $18,600 — in Louisville, Kansas City, Wichita and Oklahoma City alike. The state layer moves your total by only a few points either way, which is why the differences below matter most at the margins: city taxes, bracket structure, and whether you knew the state taxed you at all.
The four states, side by side
| Factor | Kentucky | Missouri | Kansas | Oklahoma |
|---|---|---|---|---|
| State income tax | Flat income tax — top rate 3.5% flat | Graduated income tax — top rate Up to 4.7% | Two-bracket income tax — top rate Up to 5.58% | Graduated income tax — top rate Up to 4.75% |
| Local / city taxes | Occupational taxes in Louisville & Lexington (≈1–2.2%) | 1% earnings tax in Kansas City & St. Louis | None for typical freelancers | None for typical freelancers |
| Worked example profit | $85,000 | $90,000 | $78,000 | $72,000 |
| Total tax bill | ≈$24,935 (≈29%) | ≈$26,531 (≈29%) | ≈$21,486 (≈28%) | ≈$18,714 (≈26%) |
| Quarterly payment | ≈$6,234 | ≈$6,633 | ≈$5,372 | ≈$4,679 |
| Take-home after tax | ≈$60,065 | ≈$63,469 | ≈$56,514 | ≈$53,286 |
Single filer, standard deduction, 2026 estimates. Each column uses that state's guide example, so profit levels differ — compare the effective rates rather than the raw dollars.
Combined effective rate at five profit levels
| Net profit | Kentucky | Missouri | Kansas | Oklahoma |
|---|---|---|---|---|
| $35,000 | ≈19% | ≈19% | ≈20% | ≈20% |
| $55,000 | ≈22% | ≈23% | ≈23% | ≈23% |
| $75,000 | ≈26% | ≈27% | ≈28% | ≈26% |
| $100,000 | ≈28% | ≈29% | ≈29% | ≈29% |
| $140,000 | ≈31% | ≈32% | ≈32% | ≈32% |
Federal SE tax + federal income tax + state tax, single filer. City earnings and occupational taxes excluded — add roughly 1 point if you work in Kansas City, St. Louis, Louisville or Lexington.
What actually separates them
Kentucky
Lowest top rate of the four — but city occupational taxes catch Louisville and Lexington freelancers.
Full Kentucky guide →Missouri
Moderate brackets — the surprise is the 1% city earnings tax in the two big metros.
Full Missouri guide →Kansas
Highest top rate of the four — and the old LLC pass-through exemption was repealed years ago.
Full Kansas guide →Oklahoma
Gentlest overall — but newcomers from Texas are routinely caught assuming there is no state tax.
Full Oklahoma guide →One calendar covers all four
Every state here follows the federal estimated-payment schedule: April 15, June 15, September 15 and January 15, with annual returns due April 15. On the worked examples above that means quarterly payments of roughly $4,679 in Oklahoma, $5,372 in Kansas, $6,234 in Kentucky and $6,633 in Missouri. Put all eight dates — four federal, four state — in your calendar in January, automate the transfer the day each client payment lands, and the April crisis disappears.
Frequently asked questions
Which of these four states has the lowest self-employment tax?
On pure state rate, Kentucky's flat 3.5% is the lowest — but Louisville and Lexington add occupational taxes of roughly 1% to 2.2% that can erase the advantage. Oklahoma is the gentlest overall for a typical freelancer working from home, with an effective state rate around 4.3% on mid-five-figure profits and no city earnings tax.
Is the federal self-employment tax the same in all four states?
Yes. The 15.3% federal SE tax — 12.4% Social Security plus 2.9% Medicare on 92.35% of net profit — is identical everywhere. It is also the largest single layer of the bill in all four states, which is why moving between them changes your total by only a few percentage points.
Do I owe city tax on freelance income in these states?
In Missouri, yes — Kansas City and St. Louis each charge a 1% earnings tax. In Kentucky, Louisville and Lexington charge occupational taxes of roughly 1% to 2.2%. Kansas and Oklahoma have no equivalent city earnings tax for a typical home-based freelancer.
I moved from Texas to Oklahoma — do I owe Oklahoma state tax?
Yes. Oklahoma taxes individual income up to 4.75%, and the year you become a resident is the year your freelance profit belongs on an Oklahoma return. This is the most common mistake among new Oklahoma freelancers, and the Oklahoma Tax Commission matches federal return data.
Is Kansas LLC income still exempt from state tax?
No. Kansas repealed its pass-through exemption in 2017, and freelance profit — whether earned as a sole proprietor or through an LLC — is fully taxable under the current two-bracket system topping out at 5.58%. Articles describing the old exemption still circulate; ignore them.
Are quarterly estimated payments due in all four states?
Yes. All four follow the federal estimated-payment calendar: April 15, June 15, September 15 and January 15. If you expect to owe $1,000 or more federally, estimates are required, and each state has its own threshold for state estimates.
How much should I save from each payment in these states?
At common freelance profit levels of $50,000 to $110,000, hold 25% to 29% of every payment in Kentucky, Missouri and Oklahoma, and 26% to 31% in Kansas. Transfer the reserve the day money arrives, into an account you do not see daily.
Does moving between these states mid-year split my tax?
Generally yes — you file a part-year resident return in each state, allocating the profit earned while resident there. Keep clean records of your move date and which invoices were paid before and after it; both states will want the allocation to add up.
See your own numbers, not the averages
Enter your revenue, expenses and filing status to estimate your combined federal, state and SE tax — and the quarterly reserve to set aside.
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