How Much Is Taken Out of My Paycheck in Missouri?

Understanding the various deductions taken from a paycheck is important for financial planning. While gross pay represents total earnings before any deductions, net pay is the amount an employee actually receives after all withholdings. These deductions can be mandatory, such as taxes, or voluntary, based on employee choices.

Federal Payroll Deductions

Federal payroll deductions are mandatory contributions withheld from an employee’s gross pay to fund national programs and services. These deductions are applied uniformly across the United States.

Social Security tax (OASDI) supports retirement, disability, and survivor benefits. For 2025, employees contribute 6.2% of their wages to Social Security. There is an annual wage base limit, which for 2025 is $176,100. Once an employee’s cumulative earnings reach this limit within a calendar year, Social Security tax is no longer withheld from any additional earnings for the remainder of that year.

Medicare tax, funding healthcare for eligible individuals, is applied at a rate of 1.45% for employees. Unlike Social Security, there is no wage base limit for Medicare tax, meaning it is withheld from all taxable wages. An additional Medicare tax of 0.9% applies to wages exceeding certain thresholds: $200,000 for single filers, $250,000 for married filing jointly, and $125,000 for married filing separately. This additional tax is solely an employee responsibility, with no corresponding employer contribution.

Federal income tax withholding depends on an employee’s gross income and the information provided on their Form W-4. This form allows employees to indicate their filing status, claim dependents, and account for other income or deductions to help employers calculate the correct withholding amount. The U.S. employs a progressive tax system, where higher income levels are subject to higher tax rates. Pre-tax deductions, such as contributions to certain retirement plans or health insurance premiums, reduce an employee’s taxable income, which can lower the amount of federal income tax withheld.

Missouri State and Local Deductions

Beyond federal deductions, Missouri residents and those working within the state also see state and, in some cases, local deductions from their paychecks. These directly impact the final take-home pay for individuals in Missouri.

Missouri has a progressive state income tax system, where the tax rate increases as taxable income rises. For the 2024 tax year, which dictates withholdings for 2025, Missouri’s individual income tax rates range from 2% to 4.8%. The amount withheld for state income tax is influenced by an employee’s gross income, filing status, and any specific Missouri withholding allowances or credits they claim.

While most areas in Missouri do not impose local income taxes, a few specific cities do. Kansas City and St. Louis are exceptions, as they levy an earnings tax on individuals. This earnings tax is generally 1% of the income earned within the city limits, or for residents of these cities, regardless of where the income is earned. This local earnings tax represents an additional deduction for individuals living or working in these metropolitan areas.

Missouri generally does not have other widespread state-mandated payroll deductions common in some other states. For instance, Missouri does not impose a state disability insurance tax or similar broad payroll taxes. Deductions specific to Missouri primarily consist of the state income tax and, for certain areas, the local earnings tax.

Other Common Paycheck Deductions

In addition to federal and state-mandated taxes, many paychecks include other deductions that affect net pay. These often fall into categories of mandatory non-tax deductions, voluntary pre-tax deductions, and voluntary post-tax deductions.

Mandatory non-tax deductions are legally required payments that are not income or payroll taxes. The most common example is wage garnishments, which are court-ordered withholdings from an employee’s earnings. These can be for various purposes, such as child support, alimony, defaulted student loans, or unpaid tax levies. Employers are legally obligated to deduct these amounts and remit them to the appropriate entity.

Voluntary pre-tax deductions are those taken from an employee’s gross pay before federal income tax and, often, state income tax are calculated. These deductions reduce an employee’s taxable income, leading to lower overall tax liability. Common examples include employee contributions for health, dental, and vision insurance premiums deducted on a pre-tax basis. Contributions to retirement plans like 401(k)s, 403(b)s, or SIMPLE IRAs are also often pre-tax, allowing employees to defer income tax on these contributions until retirement. Flexible Spending Accounts (FSAs) for healthcare or dependent care expenses, and Health Savings Accounts (HSAs), also allow employees to set aside money on a pre-tax basis for qualified expenses.

Voluntary post-tax deductions are withheld from an employee’s paycheck after all applicable taxes have been calculated and subtracted. Unlike pre-tax deductions, these do not reduce an employee’s taxable income. Contributions to a Roth 401(k) or Roth IRA are common post-tax deductions. Qualified withdrawals from Roth accounts in retirement are tax-free, though contributions do not offer an immediate tax deduction. Other examples include employee-paid premiums for certain life or disability insurance policies, union dues, repayments for company-sponsored loans or advances, and charitable contributions made directly through payroll deduction.