MISSOURI
Return to Retiree Tax Map
NICKNAME
The Show-Me State
BOTTOM LINE: MIXED TAX PICTURE
Missouri no longer taxes Social Security benefits for the majority of taxpayers. Residents may also qualify for exemptions on public and private pensions, subject to income limits. A 6% tax rate applies to taxable income of $9,000 or more. Sales taxes are reasonable. Residential property is assessed at 19% of fair market value, and some seniors may qualify for a property-tax credit.
STATE SALES TAX
4.225%. Prescription drugs are exempt; food is taxed at 1.225%. Cities and counties as well as special taxing districts (such as fire districts) may impose a local sales and use tax that may raise the total tax by about 6.625%.
INCOME-TAX RANGE
Low: 1.5% (on less than $1,000 of taxable income)
High: 6% (on more than $9,000 of taxable income)
SOCIAL SECURITY
Social Security benefits are not taxed for single taxpayers with adjusted gross income of less than $85,000 and married couples with AGI of less than $100,000. Taxpayers who exceed those income limits may qualify for a partial exemption on their benefits.
EXEMPTIONS FOR OTHER RETIREMENT INCOME
Single Missouri taxpayers with adjusted gross income of less than $85,000 and married couples with AGI of less than $100,000 may deduct a portion of their public retirement benefits, to the extent the amounts are included in their federal adjusted gross income. The total public pension exemption is limited to $34,141 for each individual. Taxpayers who also qualify for the Social Security or Social Security Disability Deduction must reduce their public pension exemption by the amount of the Social Security or Social Security Disability Deduction.
Taxpayers with adjusted gross income of less than $32,000 if married filing jointly, $16,000 if married filing separately, or $25,000 if single are eligible for a private pension exemption. Others who exceed the limits may receive a partial exemption, though taxpayers whose income exceeds the limit by more than the amount of their taxable private pension or $6,000 are not eligible for an exemption.
For 2012, the state allows 45% of military pension income to be exempt from Missouri state tax. This tax deduction will increase 15% annually until January 1, 2016, when all military pension income will be tax-free.
PROPERTY TAXES
Residential property is assessed at 19% of its fair market value.
Tax breaks for seniors: The Missouri Property Tax Credit Claim gives credit to certain senior citizens and disabled individuals for a portion of the real estate taxes or rent they have paid for the year. The credit is for a maximum of $750 for renters and $1,100 for owners who occupied their homes during the period being claimed. The actual credit is based on the amount of real estate taxes or rent paid and total household income.
INHERITANCE AND ESTATE TAXES
Missouri has neither an inheritance tax nor an estate tax.
Visit RetirementLiving.com for a complete rundown of taxes in Missouri.
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