St. Louis Tax Rate Breakdown: What You Need to Know

Taxes in St. Louis can be complex due to varying tax structures across different areas. Whether you live in the city or county, your total tax burden depends on income taxes, property assessments, and local sales taxes. Understanding these components is essential for financial planning.

This guide breaks down key aspects of St. Louis taxation, from real estate levies to special exemptions, to help you determine what you owe and why.

City vs. County vs. Special District Rates

St. Louis has a unique tax structure because the city and county are separate entities, each with distinct tax rates and revenue sources. Unlike most metropolitan areas, St. Louis City operates independently from St. Louis County, leading to differences in sales taxes, business licensing fees, and property levies.

Sales tax rates vary widely. As of 2024, St. Louis City’s base sales tax rate is 9.68%, while St. Louis County’s is 7.13%. These rates can increase due to special taxing districts, which impose additional levies for public transit, infrastructure, or economic development. The Metro Transit Sales Tax, for example, adds 1% in both the city and county to support the regional transit system.

Special taxing districts add further complexity. Community Improvement Districts (CIDs) and Transportation Development Districts (TDDs) can impose extra sales taxes ranging from 0.25% to 1% in designated areas. The Delmar Loop TDD, for instance, levies an additional 1% sales tax to fund streetcar operations and infrastructure upgrades. Businesses and consumers in these districts must account for these added costs when making purchases or setting prices.

Income Tax Components

St. Louis imposes a 1% earnings tax on wages, salaries, commissions, and other earned income for anyone working within city limits, regardless of residency. Even if someone lives in St. Louis County or another municipality, they must pay this tax if their job is physically in St. Louis City. Employers withhold it from paychecks to ensure compliance.

Self-employed individuals and independent contractors must also pay the earnings tax, submitting quarterly estimated payments if their earnings exceed certain thresholds. Failure to comply can result in penalties and interest charges. The tax is a key revenue source for the city, funding emergency services, infrastructure, and public programs.

Missouri’s state income tax, ranging from 1.5% to 4.8% in 2024, follows a progressive system, meaning higher earnings result in higher tax rates. Taxpayers can claim deductions, such as the standard deduction or itemized expenses, to lower taxable income. Missouri does not tax Social Security benefits for individuals below certain income thresholds, offering relief for retirees.

Real Estate Assessments and Levies

Property taxes in St. Louis are based on assessed valuations determined by the local assessor’s office. Every two years, real estate is reassessed to reflect market conditions. The process considers recent sales, home improvements, and neighborhood trends. If a property’s assessed value rises, so does the tax bill unless offset by lower tax rates or exemptions. Property owners can appeal assessments through the Board of Equalization by providing evidence such as independent appraisals or documentation of structural issues.

Missouri taxes residential property at 19% of its appraised value. A home valued at $200,000 has an assessed value of $38,000, which is then multiplied by the local tax rate. If the combined tax rate is $8.50 per $100 of assessed value, the property tax bill would be $3,230. Special assessments, such as those for neighborhood improvement districts, can add further charges.

Some homeowners qualify for relief programs. Missouri’s Property Tax Credit, known as the “circuit breaker,” provides refunds of up to $1,100 for eligible seniors and disabled individuals. The Homestead Preservation Credit limits tax increases for long-term homeowners with incomes below certain thresholds. Understanding these programs can help taxpayers manage rising property costs.

Local Sales and Use Taxes

St. Louis businesses and consumers face a layered sales tax system, with additional levies depending on the type of goods or services. General retail transactions are taxed at standard rates, but prepared food, hotel stays, and rental cars often carry higher rates due to supplemental taxes for tourism, hospitality, and infrastructure. Restaurant meals in certain districts face an extra 1% sales tax, while short-term lodging may be subject to an additional 3% or more.

Use tax applies to goods purchased from out-of-state vendors that are used, stored, or consumed in St. Louis. Unlike sales tax, which applies at the point of sale, use tax is levied on items bought from sellers who do not collect Missouri sales tax. The state use tax rate is 4.225%, but local jurisdictions can impose additional percentages, bringing the total rate closer to local sales tax levels. This tax is especially relevant for online purchases, private-party vehicle sales, and out-of-state construction materials. Businesses must track taxable purchases to ensure compliance, as failing to remit the correct use tax can result in penalties and interest charges.

Special Exemptions

Certain exemptions and tax relief programs reduce financial burdens for qualifying individuals and businesses. These exemptions apply to property, sales, and income taxes based on specific eligibility criteria.

Property tax exemptions benefit nonprofits, religious institutions, and disabled veterans. Nonprofits that meet Missouri’s statutory requirements can apply for full or partial exemptions if their property is used exclusively for charitable, religious, or educational purposes. Disabled veterans with a 100% service-connected disability rating may qualify for a complete exemption on their primary residence. Businesses in designated Enterprise Zones or Urban Redevelopment Areas may receive real estate tax abatements to encourage investment in economically distressed areas.

Sales tax exemptions apply to specific purchases and entities. Groceries, prescription medications, and medical devices are taxed at a reduced rate of 1.225% in Missouri. Nonprofits can apply for sales tax-exempt status, allowing them to make purchases without paying state or local sales tax. Manufacturing businesses benefit from exemptions on machinery and equipment used directly in production. Farmers receive exemptions on agricultural inputs such as seeds, fertilizers, and livestock feed. These exemptions provide significant savings for eligible entities.

Calculating Your Overall Obligation

Determining total tax liability in St. Louis requires evaluating income, property ownership, and spending habits. Since tax rates vary by location and individual circumstances, accurate estimates help with budgeting. The combination of earnings tax, property levies, and sales taxes means residents and businesses must account for multiple layers of taxation.

Online tax calculators and local government resources assist in estimating liabilities. The St. Louis Collector of Revenue’s website offers property tax estimators based on assessed value and applicable rates, while Missouri’s Department of Revenue provides income tax calculators. Sales tax lookup tools help businesses determine the correct rate, including special district surcharges. Tracking exemptions, deductions, and credits ensures taxpayers take advantage of all available savings.