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, 4.8% in 2024 and 4.7% in 2025, 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: above Iowa's 3.8% flat rate but below Kansas's 5.58% top rate.

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 $9,436 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 $9,436 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 (0%–4.5%) collectively apply to only $9,436 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 $181 in tax across all the sub-4.7% brackets combined. The meaningful variables are the standard deduction and Missouri's federal income tax 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 Missouri adjusted gross income: $100,000
2. Subtract the federal income tax deduction: Missouri allows a deduction equal to a percentage of federal income tax (15% at this income level, capped at $5,000 for single filers). Federal tax of $13,170 × 15% ≈ $1,976
3. Subtract the standard deduction (Missouri conforms to federal): $16,100 for 2026
4. Missouri taxable income: $100,000 − $1,976 − $16,100 = $81,924
5. Apply brackets: The first $9,436 is taxed at rates from 0%–4.5% (≈ $263). The remaining $72,488 is taxed at 4.7% = $3,407. Total: approximately $3,670.
6. Effective rate on gross income: approximately 3.67%

Estimates assume a single filer with wage income, the $16,100 standard deduction and Missouri's federal income tax deduction. 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: 4.8%
• 2025–2026: 4.7%

Further reductions of 0.1 percentage point (up to three) are possible if Missouri's net general revenue meets the growth thresholds in RSMo 143.011, which would take the top rate toward 4.5%.

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.

Missouri is not the only Midwestern state in a rate-cutting mode: Iowa has a 3.8% flat rate (since 2025), and Indiana's state rate is 2.95% for 2026. 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 ~$3,670 in state tax — raising the combined state-plus-city burden to approximately $4,670 (4.67% 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.

Kansas City voters have repeatedly re-approved the earnings tax in referendum elections (most recently April 2026, with roughly 75% voting yes). 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 (Kansas income tax applies, with a 5.58% top rate), 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: $16,100 (2026)
• Married Filing Jointly: $32,200 (2026)
• Head of Household: $24,150 (2026)

Taxpayers may itemize instead of taking the standard deduction; see Form MO-A and the Missouri Department of Revenue instructions for the deductions Missouri allows.

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.

Missouri also allows a separate deduction for a percentage of federal income tax paid (35% down to 0% depending on Missouri AGI, capped at $5,000 for single filers).

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 income tax for taxpayers age 62 or older, and Social Security disability benefits are also exempt, for tax years beginning on or after January 1, 2024
• No AGI limit applies (the former $85,000 single / $100,000 joint limits no longer apply)
• The exemption applies to benefits included in federal adjusted gross income

A retiree with $60,000 in Social Security and minimal other income pays no Missouri tax on those benefits, and higher-income retirees keep the exemption too.

Pension Income:

• Public pensions (state, local and federal government pensions generally qualify, including CSRS/FERS): deductible up to the maximum Social Security benefit amount ($47,633 for 2025); if you also claim the Social Security deduction, the public pension deduction is reduced by that amount
• Military retirement pay: fully subtracted (100%)
• Private pensions: up to $6,000 deductible; the full deduction applies at income of $25,000 or less (single) or $32,000 or less (married filing jointly), with a partial deduction above those amounts
• 401(k) withdrawals and IRA distributions: generally taxable at the 4.7% rate

Confirm current-year amounts in the Missouri Department of Revenue's Form MO-A instructions.

Property Tax and Grocery Sales Tax in Missouri

Property Tax:

Missouri property taxes are administered entirely at the county level; there is no uniform statewide rate, and effective rates vary by county (St. Louis city and St. Louis County are separate jurisdictions).

Missouri offers a Property Tax Credit (often called the circuit breaker credit) for qualifying low-income seniors and disabled persons; see the Missouri Department of Revenue for the current limits.

Sales Tax:

Missouri's state sales tax rate is 4.225%. Significant local additions apply, so combined rates vary by city and district; use the Department of Revenue's rate lookup for your address.

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. This is more favorable than states that tax groceries at the full rate but less favorable than states that exempt groceries entirely.

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 $1,135 lower than Illinois's flat 4.95% rate.
• Missouri vs Kansas: Missouri is meaningfully cheaper than Kansas at higher incomes, where Kansas's 5.58% top rate applies.
• Missouri vs Iowa: Iowa's 3.8% flat rate is lower than Missouri's 4.7% top rate, and Iowa's system is simpler; at $100,000 Iowa's tax is about $520 lower.
• Missouri vs Tennessee: Tennessee has no wage income tax, making it significantly cheaper for wage earners — though Tennessee's sales taxes (combined rates up to 9.75%) offset part of the difference for heavy consumers.
• KC/STL effect: with the 1% city earnings tax, a Kansas City or St. Louis city resident's marginal rate (5.7%) exceeds Illinois's flat 4.95%, although at $100,000 the total (about $4,670) is still slightly below Illinois's $4,805 state tax.