Missouri Income Tax Guide 2026 | 4.7% Top Rate, KC & STL Earnings Tax

Missouri has been steadily cutting its income tax rates since 2022, when Governor Mike Parson signed House Bill 3 into law. The top marginal rate has fallen from 5.3% in 2021 to 4.95% in 2023 to 4.7% in 2024, with further reductions possible if state revenue triggers are met. For 2026, Missouri's top income tax rate stands at 4.7% — competitive among Midwestern states but still above flat-tax neighbors like Iowa (3.9%) and Kansas (5.58%).

One quirk of Missouri's system is worth understanding upfront: the state uses very narrow income brackets — the top 4.7% rate kicks in at just $8,449 of taxable income. In practice, almost every Missouri taxpayer with a meaningful income pays the top rate on the vast majority of their earnings. The brackets are more symbolic than functional for anyone earning above roughly $25,000.

Kansas City and St. Louis city add a further wrinkle: both levy a 1% earnings tax on residents and on anyone who earns income within city limits. For metro-area residents, the effective combined state-plus-city rate is 5.7% — higher than many Midwestern peers and a key factor in location decisions.

Missouri's 2026 Income Tax Brackets — Thin Bands, One Dominant Rate

Missouri uses eight income tax brackets for 2026, but they are unusually narrow: the top rate of 4.7% kicks in at just $8,449 of Missouri taxable income. For any single filer with income above roughly $30,000, the 4.7% rate applies to the overwhelming majority of their taxable income. The lower brackets (2.0%–4.5%) collectively apply to only $8,449 of income — a trivial amount in the context of most working incomes.

In practical terms, Missouri's system functions almost like a flat 4.7% tax for middle and higher earners — the graduated lower bands save a maximum of only about $205 in tax across all the sub-4.7% brackets combined. The meaningful variable is the standard deduction, not the bracket structure.

Married filing jointly filers use the same bracket thresholds, and Missouri does not double the thresholds for joint filers (unlike some states), so the MFJ brackets are identical to single filer thresholds.

Missouri at $100,000 Income — Worked Example

Here is how a single filer with $100,000 gross income calculates their 2026 Missouri income tax:

1. Start with federal adjusted gross income (AGI): $100,000
2. Subtract the standard deduction (Missouri conforms to federal): approximately $14,600 for 2026
3. Missouri taxable income: $100,000 − $14,600 = $85,400
4. Apply brackets: The first $8,449 is taxed at rates from 0%–4.5% (total tax on first $8,449 ≈ $277). The remaining $76,951 is taxed at 4.7% = $3,617. Total: approximately $3,894 — but accounting for the lowest bracket being $0, effective tax is approximately $3,748.
5. Effective rate on gross income: approximately 3.75%

Note: Kansas City and St. Louis city residents must add 1% of gross income earned within city limits on top of these figures — see the earnings tax section below.

Missouri's Tax Rate Reduction Roadmap — HB 3 and Revenue Triggers

Missouri's ongoing rate reductions are the result of House Bill 3, signed by Governor Mike Parson in 2022, which created an automatic phase-down mechanism tied to state revenue performance. The rate trajectory has been:

• 2021: 5.3% top rate
• 2023: 4.95% (first reduction under HB 3)
• 2024: 4.7% (second reduction)
• 2025–2026: 4.7% (holding pending revenue trigger evaluation)

Further reductions to 4.5% or lower are possible if Missouri's net general revenue meets specified growth thresholds. The triggers require the state to collect at least $150 million more in general revenue than the prior year before the next reduction activates. If revenues are strong, the rate could drop further — potentially reaching 4.5% in a future tax year.

This mechanism makes Missouri's income tax rate a moving target. Taxpayers and financial planners should monitor annual Missouri Department of Revenue announcements each autumn for confirmation of the following year's rate. The long-term legislative intent is to continue reducing the top rate toward the low-4% range or potentially converge with flat-tax peers over the next several years.

Missouri is not the only Midwestern state in a rate-cutting mode: Iowa moved to 3.9% flat for 2026, and Indiana has reduced its flat rate to 3.05%. The regional trend is downward, creating competitive pressure on Missouri to continue its phase-down.

Kansas City and St. Louis 1% Earnings Tax — Critical for Metro Residents

Missouri's two largest cities — Kansas City and St. Louis city — each levy a 1% earnings tax on top of the state income tax. This tax applies to:

• All residents of Kansas City or St. Louis city, on all income regardless of where earned
• Non-residents who earn income within Kansas City or St. Louis city limits (including commuters working downtown)

For a Kansas City or St. Louis city resident earning $100,000, this adds $1,000/year in local tax on top of the ~$3,748 in state tax — raising the combined state-plus-city burden to approximately $4,748 (4.75% effective rate on gross income).

The earnings tax is separate from, and in addition to, the Missouri state income tax. It is not creditable against state tax in most cases. This makes the effective marginal rate for city residents 5.7% (4.7% state + 1% city) — higher than Illinois's flat 4.95% rate and approaching the rates of higher-tax Midwestern states.

Voters in both cities have repeatedly re-approved the earnings tax in referendum elections (most recently 2021 for Kansas City). The tax is a significant revenue source for both cities and is unlikely to be eliminated in the near term.

Who is affected:

• Residents of Kansas City city limits or St. Louis city (not St. Louis County, which is a separate jurisdiction)
• Workers who commute into Kansas City or St. Louis city to work — they pay on income earned within city limits even if they live in suburbs
• Remote workers are generally not subject to the earnings tax if they work from home outside city limits

For someone deciding between living in Kansas City proper versus a suburb like Overland Park, Kansas (no state income tax in Kansas on the first $2,500, flat 5.58% above), or Lee's Summit, Missouri (no earnings tax), the 1% city earnings tax is a meaningful factor.

Missouri Standard Deduction — Federal Conformity

Missouri does not have its own standard deduction separate from the federal system. Instead, Missouri conforms to the federal standard deduction. For 2026, Missouri taxpayers who take the standard deduction use the same amounts as their federal return:

• Single / Married Filing Separately: approximately $14,600 (2026 estimated — IRS adjusts annually for inflation)
• Married Filing Jointly: approximately $29,200 (2026 estimated)
• Head of Household: approximately $21,900 (2026 estimated)

Missouri also conforms to federal itemized deductions. Taxpayers who itemize on their federal return carry the same deductions to Missouri. Common Missouri itemized deductions include mortgage interest, property taxes, and charitable contributions — all deductible to the same extent as on the federal return.

Missouri does not have a separate personal exemption (unlike Louisiana's $12,500 per-taxpayer exemption, for example). The standard deduction is the primary reduction from gross income before Missouri taxable income is calculated.

One important nuance: Missouri does not conform to the federal $10,000 SALT (state and local tax) deduction cap for taxpayers who itemize. Missouri allows full deduction of state and local taxes paid, which can benefit taxpayers in high-property-tax areas who exceed the federal SALT cap but still itemize for state purposes.

Social Security and Pension Income in Missouri

Missouri offers significant tax relief for Social Security recipients and some retirees:

Social Security Benefits:

• Fully exempt from Missouri state income tax for single filers with AGI below $85,000
• Fully exempt for married filing jointly filers with AGI below $100,000
• Above those AGI thresholds, Social Security benefits become taxable at the state level (following federal treatment)

This income-based exemption makes Missouri favorable for lower-to-moderate income retirees. A retiree with $60,000 in Social Security and minimal other income pays no Missouri tax on those benefits. However, a retiree with significant IRA withdrawals, rental income, or pension income that pushes AGI above $85,000 will see their Social Security benefits become taxable.

Pension Income:

• Missouri state/local government pensions: fully exempt from Missouri income tax
• Federal government pensions (CSRS/FERS): fully exempt
• Military retirement pay: fully exempt
• Private pensions, 401(k) withdrawals, IRA distributions: generally taxable at the 4.7% rate

Missouri's treatment of government pensions as fully exempt makes it a competitive option for retired state employees and federal workers. A Missouri state teacher receiving a $50,000 annual pension pays $0 Missouri income tax on that income — a meaningful benefit compared to states that tax all pension income equally.

Property Tax and Grocery Sales Tax in Missouri

Property Tax:

Missouri's effective property tax rate averages approximately 0.93% — moderate compared to the national average of about 1.1%. Property taxes are administered entirely at the county level; there is no uniform statewide rate. Urban counties near Kansas City and St. Louis generally have higher effective rates (1.0%–1.2%), while rural counties may be lower.

• Jackson County (Kansas City area): approximately 1.0%–1.2% effective rate
• St. Louis County: approximately 1.0%–1.1% effective rate
• St. Louis city: approximately 1.3%–1.5% effective rate (city and county are separate jurisdictions)

Missouri offers a property tax credit (Circuit Breaker Credit) for low-income seniors and disabled persons — up to $1,100 for renters and $1,300 for homeowners in 2026.

Sales Tax:

Missouri's state sales tax rate is 4.225%. Significant local additions apply, pushing combined rates in major metro areas to 8.1%–9.7%:

• Kansas City metro: approximately 8.6%–9.7% combined
• St. Louis metro: approximately 8.1%–9.5% combined
• Springfield: approximately 8.1% combined

Missouri taxes groceries at a reduced state rate of 1.225% (not exempt, but substantially reduced from the standard 4.225% state rate). Local taxes still apply on top of the reduced state rate, so the total tax on groceries in Kansas City or St. Louis typically runs 5%–7%. This is more favorable than states that tax groceries at the full rate but less favorable than states (like Illinois) that fully exempt groceries or those (like Texas, Florida) with no income tax.

Missouri vs Illinois, Kansas, Iowa, and Tennessee — Midwestern Tax Comparison

Missouri sits at a crossroads of Midwestern and Southern tax philosophies. Here is how it compares to key neighbors at $100,000 single filer income:

Key takeaways from the comparison:

• Missouri vs Illinois: Missouri's state income tax burden at $100K is approximately $960 lower than Illinois's flat 4.95% rate. Missouri residents also benefit from lower property taxes than Illinois (one of the highest in the nation at ~2.23% effective).
• Missouri vs Kansas: Missouri is meaningfully cheaper than Kansas at higher incomes, where Kansas's 5.58% top rate applies. Kansas also lacks Missouri's SS exemption.
• Missouri vs Iowa: Iowa's new 3.9% flat rate is lower than Missouri's 4.7% top rate, and Iowa's system is simpler. For earners above $50,000, Iowa is now the cheaper option.
• Missouri vs Tennessee: Tennessee has no wage income tax, making it significantly cheaper for wage earners — though Tennessee's sales taxes (among the highest in the US at ~9.5% combined) offset part of the difference for heavy consumers.
• KC/STL effect: Kansas City residents paying 1% city earnings tax effectively face a higher rate than a comparable Illinois resident in the suburbs — partially erasing Missouri's state-level advantage.