What Is the Income Tax Percentage in Missouri?

Missouri imposes a state-level income tax on an individual’s or entity’s earnings. This tax is separate from federal and any applicable local taxes. The amount of tax a person owes is based on their income level, filing status, and eligibility for various deductions and credits.

Missouri State Income Tax Rates

For the 2024 tax year, Missouri uses a graduated income tax system with eight different brackets. The rates for 2024 start at 0% for the first $1,273 of taxable income and increase to a top rate of 4.8% for taxable income over $8,911. These brackets and rates are the same for all filing statuses.

The state employs a marginal tax rate system. This structure does not mean all of a person’s income is taxed at their highest bracket’s rate. For instance, a single filer with $40,000 in Missouri taxable income falls into the top 4.8% bracket, but only the income above $8,911 is taxed at that rate. The portions of their income falling into the lower brackets are taxed at those corresponding lower rates.

Missouri’s tax landscape is undergoing a transition. Recent legislation has initiated a gradual reduction of the top income tax rate and a consolidation of the tax brackets, contingent on the state meeting specific revenue growth targets. The top rate is scheduled to decrease from 4.8% to 4.7% for the 2025 tax year.

Calculating Your Missouri Taxable Income

Before applying the tax rates, you must determine your Missouri taxable income. This figure is calculated by taking your federal adjusted gross income and subtracting any allowable Missouri deductions. The primary option is the state’s standard deduction, a fixed dollar amount that simplifies the filing process.

The standard deduction amount varies based on your filing status. For the 2024 tax year, the standard deduction for a single individual is $14,600. For married couples filing a combined return, the amount is $29,200, and for those filing as head of household, it is $21,900. Taxpayers over age 65 or who are blind may be eligible for an additional standard deduction amount.

Taxpayers have the option to itemize their deductions instead. This involves tallying up specific deductible expenses, such as mortgage interest, certain taxes, and charitable contributions. A taxpayer would choose to itemize if their total itemized deductions exceed the standard deduction amount for their filing status.

Available State Tax Credits

After calculating your tax liability, you may be able to reduce the final amount you owe by claiming tax credits. Unlike deductions, which lower your taxable income, credits provide a dollar-for-dollar reduction of your actual tax bill. Missouri offers several credits to provide relief to specific groups of taxpayers.

One of the most prominent is the Property Tax Credit, often called the “Circuit Breaker” credit. This credit helps senior citizens and individuals with disabilities by providing relief from property taxes or rent paid. The maximum credit amount can be up to $750 for renters and $1,100 for homeowners, depending on their income and property tax liability.

Other credits include one for income taxes paid to another state, which prevents double taxation. The state also offers a Child and Dependent Care Tax Credit and the Missouri Working Family Credit, which for the 2024 tax year is equal to 20% of the federal Earned Income Tax Credit.

Local Earnings Taxes

Separate from the state income tax system, some of Missouri’s largest cities impose their own local income tax, commonly referred to as an earnings tax. This is a flat tax levied on the earnings of individuals and businesses within the city’s jurisdiction. The two most notable examples are St. Louis and Kansas City.

Both St. Louis and Kansas City levy a 1% earnings tax. This tax applies to anyone who lives within the city limits, regardless of where they work, and anyone who works within the city limits, regardless of where they live. The tax is applied to gross wages for individuals and net profits for businesses.