Bottom Line
Middle-Class Families: Mixed Tax Picture (Go to the Kiplinger Tax Map for Middle-Class Families)
Retirees: Mixed Tax Picture (Go to the Kiplinger Tax Map for Retirees)
It's easy to see why the Show-Me State gets a "mixed" tax rating. For the three major taxes – income, sales and property taxes – state and local levies are neither very high nor very low. Missouri recently lowered its top income tax rate from 5.4% to 5.3% for 2022, and it's dropping again to 4.95% in 2023 with more rate reductions possible in the future. But the state's income tax bite is still average because the top rate kicks in quickly.
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Missouri's state sales tax rate is rather low. However, local sales tax rates can be high. So, overall, sales tax levies in the state are above average, but not by too much.
On the other hand, the median property tax rate in Missouri is slightly below average. Fuel taxes are among the lowest in the country, too.
Missouri Income Taxes
Missouri Income Tax Range
Low: 1.5% (on taxable income from $112 to $1,121)
High: 5.3% (on more than $8,968 of taxable income)
Beginning in 2023, the top rate is reduced to 4.95% and the first $1,000 of income is exempt (adjusted for inflation after 2023). Starting in 2024, additional top rate reductions of 0.15% are possible if the net general revenue collected by the state exceeds a certain threshold. In addition, up to three more top rate reductions of 0.1% are possible if net general revenue exceeds a different threshold.
Kansas City and St. Louis also impose an earnings tax.
Missouri 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.
Missouri 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.
For the 2021 tax year, up to $39,365 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.
Missouri Sales Tax
4.225% state levy. Localities can add as much as 5.763%, and the average combined rate is 8.29%, according to the Tax Foundation.
- Groceries: Taxable (1.225% state rate; additional local taxes may apply)
- Clothing: Taxable
- Motor Vehicles: Taxable
- Prescription Drugs: Exempt
Missouri Real Property Taxes
In Missouri, the median property tax rate is $959 per $100,000 of assessed home value.
Missouri Property Tax Breaks for Retirees
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).
Missouri Motor Fuel Taxes
Gasoline: 19.92¢ per gallon.
Diesel: 19.92¢ per gallon.
Missouri Sin Taxes
Cigarettes: $0.17 per pack
Other tobacco products: 10% of the wholesale price
Beer: $0.06 per gallon
Wine: $0.42 per gallon
Liquor: $2 per gallon
Marijuana: 6% tax on retail price
Missouri Estate and Inheritance Taxes
No estate or inheritance tax.
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