Taxes in Missouri
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The overall tax rating for Missouri is mixed. Major taxes, like income, property, and sales taxes, are about average. However, several localities tack on a steep sales tax, pushing an average tax rate into extreme territory. Below, we explain various Missouri state taxes affecting retirement income, such as sales tax, inheritance tax, and property taxes.
For information regarding taxes in other states, see Retirement Taxes by State.
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Missouri Tax Rates
|State Sales Tax||4.23%|
|Avg State/Local Sales Tax||8.29%|
|Gas Tax||$0.22 per gallon|
|Diesel Tax||$0.22 per gallon|
|Cigarette Tax||$0.17 per pack|
|Effective Tax Rate:||4.50%|
|Social Security Tax||Partial|
|Federal Income Tax Deduction:||Yes|
Missouri State Taxes Explained
Missouri Sales Tax
4.23%; groceries and plants and seeds for gardens are taxed at 1.225%. Cities, counties, and special taxing districts may impose a local sales and use tax up to 5.76%. Prescription drugs, hearing aids, and hearing aid supplies are exempt.
Missouri Income Taxes
Max rate of 4.95% (on taxable income over $1,000). Additional reductions are possible in 2024 and thereafter if certain revenue requirements are met.
Missouri Property Taxes
Missouri’s effective property tax rate is 0.97%. This amounts to $1,526 on the median home price of $157,200.
The Missouri Property Tax Credit Claim is available to senior citizens and 100% disabled individuals who meet income qualifications. This credit provides a maximum of $750 for renters and $1,100 for homeowners who occupied their homes. The credit amount is based on real estate taxes or rent paid and total household income. See the property tax qualification chart to determine eligibility.
Missouri Retirement Taxes
Missouri allows a deduction based on income level for public and private pensions and military pensions. Starting in 2024, retirees in Missouri won’t have to pay state income taxes on Social Security. Current law allows a 100% exemption as long as the taxpayer is 62 or older and has less than $85,000 (single filer) or $100,000 (filing jointly) in annual income.
Married couples with Missouri adjusted gross income greater than $100,000 and single individuals with Missouri adjusted gross income greater than $85,000, may qualify for a partial exemption. Taxpayers who also qualify for the Social Security or Social Security Disability Deduction must reduce their public pension exemption by the amount of the Social Security or Social Security Disability Deduction.
Taxpayers who itemize deductions on their federal tax return may itemize deductions on the Missouri income taxes. Taxpayers can take the state standard deduction if the benefit is greater than itemized deductions. However, if you itemize on the federal return, you must also itemize on the Missouri return.
Residents can deduct a percentage of federal income tax based on adjusted gross income. Percentages range from 5% to 35% and phase out completely at AGI of $125,001. This deduction is capped at $5,000
See the Missouri Income Tax Guide for the tax year for more information.
Missouri Estate and Inheritance Taxes
Missouri has no inheritance tax and no estate tax for deaths occurring on or after January 1, 2005.
For additional information, see the Missouri Department of Revenue website.