All About Missouri Tax Laws  

Taxes are complicated, but with our guide, you'll master Missouri tax laws in no time!

Understanding Missouri's tax system can help you save money and avoid unexpected expenses. Here’s a breakdown of key tax laws you should know:

Missouri State Income Tax

Missouri income tax is a state-level tax imposed on the income of individuals. Like federal income tax, the Missouri income tax is progressive, meaning the rate of taxation increases as taxable income increases.

The 2024 tax brackets are:

  • $0 - $1,273: 0.00%
  • $1,273 - $2,546: 2.00%
  • $2,546 - $3,819: 2.50%
  • $3,819 - $5,092: 3.00%
  • $5,092 - $6,365: 3.50%
  • $6,365 - $7,638: 4.00%
  • $7,638 - $8,911: 4.50%
  • $8,911+: 4.80%

Recently, Missouri lowered its top income tax rate to 4.7%, which will be effective for tax year 2025. This tax cut is part of a plan started in previous years that allows a small decrease each year if the state meets its revenue goals, until the highest tax rate reaches 4.5%.

Filing News and Tax Laws

The due date for filing income tax in Missouri is April 15th! You are not required to file a Missouri tax return if you’re not required to file a federal return.

If you are required to file a federal return, you may not need to file a Missouri tax return if you:

  •  are a Missouri Resident with less than $1,200 of Missouri adjusted gross income (AGI)
  •  are a nonresident with less than $600 of Missouri Income
  •  have Missouri AGI less than the amount of your standard deduction, based on your filing status.

Missouri's standard tax deduction follows the federal standard deduction. For 2024, the standard deductions is $14,600 for single or married filing separately, $21,900 for head of household, and $29,200 for married filing jointly and qualifying widow(er).

Helpful Tips for Tax Season

Don’t wait until the last moment to get prepared for tax season! Taking proactive steps now can help save you money in the long run. Delaying tax filing increases the risk of mistakes. Common mistakes include incorrect social security numbers, names, and bank account numbers. Always take time to double check your forms to ensure it has the correct information.

Consulting a tax professional can not only save you time, they can also help save you money by preventing mistakes. They can easily identify savings opportunities you might not know about. As experts, they stay up to date on the latest tax laws and regulations.

City and Local Taxes

St. Louis and Kansas City impose an earnings tax of 1% on individuals who work within the city limits. The earning tax is imposed on earned income, including salaries, wages, commissions, and other compensation earned by resident individuals of St. Louis and Kansas City. Income that is not considered earned (e.g., Social Security, pensions, and other retirement income) is outside the scope of the 1% earning tax. For more information regarding the earnings tax, consult the Earnings Department for St.Louis and Kansas City.

Missouri Sales Tax

Sales taxes are an important source of revenue for the state and counties in Missouri. Sales tax is imposed on retail sales of tangible personal property and certain services. Missouri's state sales tax rate is 4.225%. Cities and counties can add their own sales taxes, so the total tax someone pays depends on the combined state and local rates where the seller is located.

Missouri charges sales tax on tangible personal property as well as services considered taxable. Taxable Services in Missouri include:

  •  Amusement and Entertainment: Taxes on admission fees for events, games, and recreational activities.
  •  Utilities: Taxes on electricity, water, and gas (except for domestic use).
  •  Local Utility Sales: Cities, counties, and districts may tax domestic utilities.
  •  Telecommunications: Taxes on local and long-distance phone services, including leased telecom equipment (but not Internet services).
  •  Telegraph Services: Taxes on message transmission by telegraph companies.
  •  Lodging and Dining: Taxes on hotel rooms, meals, and drinks sold in restaurants, motels, taverns, and similar places.
  •  Transportation Tickets: Taxes on intrastate tickets for trains, buses, boats, airplanes, and similar transportation services.
  •  Fabrication Labor: Taxes on labor used to create products for retail sale (labor costs cannot be separated to claim an exemption).

Missouri has two sales tax holidays each year. However, some cities still charge local tax. During August, the Back-to-School Sales Tax Holiday includes:

  •  School supplies up to $50 (per purchase)
  •  Computer software with taxable value up to $350
  •  Personal computers up to $1,500
  •  Clothing up to $100

In addition, for seven days in April the Show Me Green Sales Tax Holiday is no state sales tax on Energy Star appliances (washers, dryers, dishwashers, refrigerators, stoves) up to $1,500 each.

All sales of tangible personal property and taxable services are generally presumed taxable unless specifically exempted by law. For further information regarding Missouri’s sales tax procedures, visit the Missouri Department of Revenue.

Missouri Property Tax

Homeowners in Missouri pay property taxes on their homes, but the rates depend on where they live and the type of property. The state’s average tax rate is 0.91%, which is close to the national average.

Each county in Missouri sets its own rules for assessing and collecting property taxes. Taxes are collected at the county level. Missouri's average property tax is $1,265 per year, based on a 0.91% tax rate for a home costing around $139,700.

The information provided in these articles is intended for informational purposes only. It is not to be construed as the opinion of Central Bancompany, Inc., and/or its subsidiaries and does not imply endorsement or support of any of the mentioned information, products, services, or providers. All information presented is without any representation, guaranty, or warranty regarding the accuracy, relevance, or completeness of the information.