Missouri Tax Guide 2025
Explore Missouri's 2025 state tax rates for income, sales, property, retirement, and more. Learn how Missouri compares nationwide.
Gabriella Cruz-Martínez
Navigating the complexities of state taxes can be daunting, but understanding MIssouri's tax landscape is essential for residents and newcomers alike. In this guide, we'll explore key components of The Show-Me State's tax system, from income and sales taxes to property taxes and retirement benefits.
Missouri state tax: Overview
Missouri recently became a little more tax-friendly toward retirees.
The state repealed its income tax on Social Security retirement benefits, effective as of last year. Though the repeal exempts Social Security benefits and public pension payments from state income tax, public pensions are only partially exempt.
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The measure was estimated to reduce state general revenue by approximately $309 million annually. Current state law also allows Missouri counties to freeze property tax hikes for homeowners who are at least 62 years old, providing a significant tax break for those entering their retirement years.
Missouri has also become the first state with an income tax to eliminate capital gains taxes for individuals.
However, the state's sales taxes are on the high end. Additionally, while most states have made certain food items tax-exempt, Missouri is one of the states that still taxes groceries.
[Data for this state tax guide was gathered from several sources, including the U.S. Census Bureau, the state’s government website, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.]
Missouri income tax
Missouri has a graduated state individual income tax ranging from 2% to 4.8%.
MIssouri retirement taxes
Missouri eliminated the tax on all Social Security retirement benefits, effective beginning with the 2024 tax year.
- Income Tax: Low of 2% (on up to $2,546) and a high of 4.8% (on more than $8,911)
- Social Security: Not taxable
- Pensions: Partially taxable (Public pensions are partially taxed.)
- 401(k) and IRA Distributions: Taxable
Missouri sales tax
Missouri's statewide sales tax is 4.225%, and localities can add as much as
8.013%, according to the Tax Foundation. That puts the maximum sales tax close to the highest in the nation, at an average 8.41% in 2025.
- Groceries: Taxable
- Clothing: Taxable
- Prescription drugs: Taxable
- Diapers and women's hygiene products: Taxable
How much are property taxes in Missouri?
In Missouri, the average effective property rate is 0.88%, which is lower than in most other states.
Missouri also has property tax breaks for retirees. The state offers a property tax credit of up to $1,100, available to eligible homeowners age 65 and older ($750 for renters).
Anyone who receives Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), or Veterans Disability may also be eligible, regardless of age. To qualify, homeowners must meet the following criteria.
- You must have owned and lived in your home for the entire year.
- Your income must not exceed the income threshold set for the year.
- You must have paid real estate taxes.
Missouri gas tax
Gasoline | $0.17 per gallon |
Diesel | $0.17 per gallon |
Source: Sales Tax Handbook
Missouri taxes on alcohol and tobacco
Product | Tax amount |
|---|---|
Cigarettes | $0.17 per pack |
Other tobacco products | 10% of manufacturer's price |
Source: Sales Tax Handbook
Product | Tax amount |
|---|---|
Beer | $0.06 per gallon |
Wine | $0.42 per gallon |
Liquor | $2.00 per gallon |
Source: Sales Tax Handbook
Missouri estate and inheritance taxes
Missouri does not have an estate or an inheritance tax.
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