Missouri Tax Guide 2025

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The state repealed its income tax on Social Security retirement benefits, effective as of last year.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 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.

• Tax on Taxable Income: 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

Source: Sales Tax Handbook

Missouri taxes on alcohol and tobacco 

Source: Sales Tax Handbook

Source: Sales Tax Handbook

Missouri estate and inheritance taxes

Missouri does not have an estate or an inheritance tax.

Related Content

• The 'Food Tax': Grocery Tax by State
• Taxes in Retirement: How All 50 States Tax Retirees
• States That Won't Tax Your Death
• Missouri Leads Capital Gains Tax Repeal: Will Your State Follow?