State-by-State Guide to Taxes on Retirees
Tool | December 2020

Missouri State Tax Guide for Retirees

State tax rates and rules for income, sales, property, estate, and other taxes that impact retirees.

Missouri

Add to State Compare List | View List
(0) selected | Compare up to 5

The Bottom Line
Flag of Missouri

Mixed Tax Picture

It's easy to see why the Show-Me State gets a "mixed" tax rating for retirees. For the three major taxes—income, sales and property taxes—state and local levies are neither very high nor very low. For income taxes, Missouri doesn't tax Social Security benefits for many taxpayers. Taxpayers may also qualify for exemptions on public and private pensions, subject to income limits. But note that if you do have taxable income, the top rate kicks in quickly: 5.4% on income over $8,704 (for 2021).

Missouri's state sales tax rate is rather low. However, local sales tax rates can be high. So, overall, sales tax levies in Missouri are above average, but not by too much.

On the other hand, the median property tax rate in Missouri is slightly below average. Plus, some seniors may qualify for a property-tax credit.

Income Tax Range

Low: 1.5% (on taxable income from $107 to $1,073)

High: 5.4% (on more than $8,584 of taxable income)

For 2021, the 1.5% rate applies to taxable income from $109 to $1,088. The 5.4% rate applies to taxable income over $8,704.

Missouri law calls for a 0.7% reduction in the top income tax rate over a period of years in 0.1% increments, but each rate cut is effective only if net general revenue collections hit a certain trigger amount. However, in 2024, the top rate will be reduced by 0.1% without regard to revenue collections.

Kansas City and St. Louis also impose an earnings tax.

Taxation of Social Security Benefits

Social Security benefits are not taxed for married couples with a federal adjusted gross income less than $100,000 and single taxpayers with an AGI of less than $85,000. Taxpayers who exceed those income limits may qualify for a partial exemption on their benefits.

Tax Breaks for Other Retirement Income

Up to $6,000 of federally-taxed income from private retirement plans is exempt for single filers with federal modified adjusted gross income of $25,000 or less. For joint filers with federal MAGI of $32,000 or less, up to $12,000 is exempt.

Up to $39,014 (2020 amount) of federally-taxed income from government retirement plans is exempt for single filers with federal AGI of $85,000 or less and joint filers with federal AGI of $100,000 or less.

Military pensions and Railroad Retirement benefits are fully exempt.

Sales Tax

4.225% state levy. Localities can add as much as 5.763%, and the average combined rate is 8.25%, according to the Tax Foundation.

Groceries: Taxable (1.225% state rate; additional local taxes may apply)
Clothing: Taxable
Motor Vehicles: Taxable
Prescription Drugs: Exempt

Real Property Taxes

In Missouri, the median property tax rate is $930 per $100,000 of assessed home value.

A Missouri income tax credit helps seniors age 65 and older cover a portion of the property taxes or rent they have paid for the year. The maximum credit amount is $750 for renters and $1,100 for homeowners. The actual credit is based on the amount of real estate taxes or rent paid and total household income. Single homeowners must have a total household income of $30,000 or less ($27,500 or less for renters), while married couples filing a joint return must have a total household income of $34,000 or less ($29,500 or less for renters).

Annual Car Taxes and Fees

An annual vehicle property tax based on the car's value is imposed.

Estate and Inheritance Taxes

No estate or inheritance tax.

Advertisement