Gabriella Cruz-Martínez
Missouri state tax: Overview
Missouri state tax became a little more friendly toward retirees this year.
The state repealed its income tax on Social Security retirement benefits, effective as of last year. The tax cut, signed into law by Gov. Mike Parson, exempts Social Security benefits and public pension payments from income tax.
The measure was estimated to reduce state general revenue by an estimated $309 million each year. Current state law also allows Missouri counties to freeze property tax hikes for homeowners who are at least 62 years old, a great tax break for those entering retirement years.
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Missouri is also poised to become the first state to eliminate capital gains taxes.
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 Income Tax Range
For 2023, the first $1,000 of income was tax-exempt, and the top individual tax rate was 4.95% (on more than $8,968 of taxable income). That rate was reduced to 4.8% for 2024.
(Note: Kansas City and St. Louis also impose an earnings tax.)
For 2025, Missouri is restructuring its income tax brackets, adding a new sixth bracket with a 4.3% rate for filers earning between $16,500 and $33,500 individually or $25,000 to $50,000 jointly.
Note: Missouri could become the first state to eliminate capital gains taxes. The state legislature passed a sweeping bill that would eliminate the individual capital gains tax starting with the 2025 tax year.
Once Gov. Mike Kehoe, who has reportedly expressed strong support for the idea, signs the bill, Missouri will become the first state in the nation to fully exempt profits from the sale of stocks, real estate, cryptocurrency, and other capital assets from state income tax.
MIssouri retirement taxes
- Missouri doesn't tax Railroad Retirement or Military Retirement benefits.
- Social Security retirement benefits are tax-exempt, as of 2024.
- Public pensions are also tax-exempt.
Missouri sales tax
Missouri's statewide sales tax is 4.225%, and localities can add as much as
5.875%, according to the Tax Foundation. That puts the maximum sales tax close to the highest in the nation, at an average 8.410% in 2025.
Missouri is one of 10 states that still tax groceries, and levies a statewide reduced rate of 1.225% (Additional local taxes may apply). There may be some good news, state lawmakers are floating ending grocery taxes in 2025. However, past efforts haven’t been successful due to revenue concerns.
- Diapers and women's hygiene products are taxable.
- Prescription drugs are tax-exempt.
How much are property taxes in Missouri?
In Missouri, the average effective property rate is 0.91%, 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
Missouri charges 27 cents per gallon of gasoline and diesel, according to its Department of Transportation. Some 4.05 cents go toward cities, 3.50 cents toward counties, and 19.45 cents go to MoDOT.
Each additional fuel tax results in an estimated $29.0 million for MoDot and $12.6 million for cities and counties.
Missouri taxes on alcohol and tobacco
Cigarettes | $0.17 per pack |
Other tobacco products | 10% of manufacturer's price |
Beer | $0.06 per gallon |
Wine | $0.42 per gallon |
Liquor | $2.00 per gallon |
Missouri estate and inheritance taxes
Missouri does not have an estate or an inheritance tax.
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