The IPL franchise made the announcement on social media on Thursday.
Vijay had replaced South African David Miller as captain midway into the last season. However, that did not change the team's fortune as it finished last for the second successive season.
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Maxwell, who is currently in India with the Australian Test squad, had a quiet last two IPL seasons by his standards, scoring 324 runs in 22 games.
He, however, was instrumental in taking the team to its maiden IPL final in 2014.
Kings XI will also have a new second home this season where they will play three matches at the Holkar Stadium in Indore while the PCA Stadium in Mohali will stage the remaining home games.
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