Last Updated: April 2026
Missouri has undergone significant income tax reform over the past decade, reducing its top rate from 6% down to 4.8% and planning further reductions. The graduated tax system now has a top rate of 4.8% on income above $9,072 — a relatively low threshold for the top bracket, meaning most Missouri working adults pay close to the top rate. Further reductions to 4.7% are planned as revenue triggers are met.
The defining peculiarity of Missouri taxes is the earnings taxes in Kansas City and St. Louis. These cities levy a 1% tax on all earned income (wages and self-employment income) generated within their city limits — paid by both residents and non-residents who work there. A commuter who lives in suburban St. Louis County but works in the city of St. Louis pays the 1% earnings tax on their city wages. This effectively adds 1 percentage point to the income tax burden for the large portion of Missouri workers employed in these urban centers.
Missouri’s sales tax structure is unusual: the state rate is a relatively modest 4.225%, but local jurisdictions add heavily on top, creating wide variation across the state. In Kansas City and St. Louis metro areas, combined rates regularly reach 8–10%. Understanding the local rate for your specific zip code is essential in Missouri.
Missouri has been systematically reducing its income tax through a series of legislatively mandated cuts triggered by revenue benchmarks. The top rate has fallen from 6% (which applied for many years) to the current 4.8%, with 4.7% planned as the next reduction when revenue conditions are met.
| Taxable Income | Tax Rate |
|---|---|
| $0 – $1,207 | 1.5% |
| $1,208 – $2,414 | 2.0% |
| $2,415 – $3,622 | 2.5% |
| $3,623 – $4,829 | 3.0% |
| $4,830 – $6,036 | 3.5% |
| $6,037 – $7,243 | 4.0% |
| $7,244 – $8,450 | 4.5% |
| Over $8,450 (approx) | 4.8% |
The bracket thresholds are low, meaning most working adults in Missouri reach the 4.8% top rate on the majority of their income. The effective rate for someone earning $50,000 in Missouri is close to the 4.8% top rate after accounting for the graduated lower brackets on the first ~$9,000 of income.
| State | Income Tax | Effective Rate at $100,000 |
|---|---|---|
| Missouri | Progressive to 4.8% | ~4.7% |
| Kansas | Progressive to 5.7% | ~5.2% |
| Arkansas | Progressive to 4.4% | ~4.0% |
| Tennessee | None | 0% |
| Illinois | 4.95% flat | 4.95% |
| Iowa | Progressive to 6% | ~5.5% |
Missouri conforms to many federal tax provisions. The state standard deduction is $12,950 for single filers and $25,900 for married filing jointly (following federal amounts). Missouri allows a personal exemption of $2,100 per taxpayer and $1,200 per dependent. These deductions reduce Missouri taxable income before the brackets apply, meaning most single earners don’t owe Missouri income tax until income exceeds approximately $13,000–15,000.
The earnings taxes in Kansas City and St. Louis are unlike typical income taxes. They are gross receipts-style taxes levied on wages and self-employment income earned within the city limits — not on total income, and not just on residents. The 1% rate applies to:
Both residents and non-residents pay the earnings tax on income earned in the city. A consultant who lives in suburban Chesterfield (St. Louis County) but works from a downtown St. Louis office owes the 1% St. Louis earnings tax on those wages. A company with employees working in Kansas City must withhold and remit the 1% Kansas City earnings tax for all city-based employees.
Non-residents who work partially in the city must apportion their income — only the income attributable to days actually worked in the city is subject to the earnings tax.
| Location | Missouri State Rate (approx) | City Earnings Tax | Combined State + City (approx) |
|---|---|---|---|
| Kansas City (resident) | 4.8% | 1.0% | 5.8% |
| St. Louis city (resident) | 4.8% | 1.0% | 5.8% |
| Non-resident working in KC/STL | 4.8% (all MO income) | 1.0% (city income only) | Varies by apportionment |
| Springfield (no earnings tax) | 4.8% | 0% | 4.8% |
| Columbia (no earnings tax) | 4.8% | 0% | 4.8% |
Kansas City voters have renewed their earnings tax in every required 5-year ballot vote. The St. Louis earnings tax has similarly been renewed. Missouri law (passed as Proposition A in 2010) requires voters in Kansas City and St. Louis to vote every five years to continue these taxes. The taxes have survived every vote to date, reflecting the cities’ dependence on this revenue for municipal services. Any future vote to eliminate the earnings tax would require a majority of city voters to decline renewal.
Missouri’s state sales tax rate of 4.225% is one of the lower state rates in the Midwest. However, Missouri has among the highest local sales tax additions in the country. Missouri cities, counties, and special taxing districts layer their own rates on top of the state rate, creating significant variation across the state.
| Location | Approximate Combined Sales Tax Rate |
|---|---|
| Kansas City | ~8.6–9.9% (varies by district) |
| St. Louis City | ~9.68% |
| St. Louis County suburbs | ~7.6–8.5% |
| Springfield | ~8.1% |
| Columbia | ~7.975% |
| Rural Missouri (lower end) | ~5.5–6.5% |
Missouri exempts prescription drugs and certain medical equipment from sales tax. Groceries are taxable in Missouri at a reduced rate in some situations, but Missouri has periodically modified its grocery tax treatment. Restaurant meals and prepared food are taxed at the full combined rate.
Missouri’s statewide average effective property tax rate of approximately 1.01% is close to the national average. However, there is significant variation: the Kansas City metro and St. Louis County areas have higher rates than rural Missouri. Missouri assesses residential property at 19% of true market value, which affects the nominal rate vs. effective rate calculation.
| Area | Approximate Effective Rate | Annual Tax on $400,000 Home |
|---|---|---|
| St. Louis County | ~1.30% | ~$5,200 |
| Kansas City / Jackson County | ~1.10% | ~$4,400 |
| Springfield / Greene County | ~0.95% | ~$3,800 |
| Columbia / Boone County | ~1.00% | ~$4,000 |
Missouri provides a meaningful Social Security exemption for lower and middle-income retirees:
Missouri repealed its estate tax in 2005 when the federal estate tax credit that had allowed states to “piggyback” on federal estate tax was eliminated. Since then, Missouri has had no state estate tax and no inheritance tax. Only the federal estate tax applies to Missouri residents, with the 2024 federal exemption of $13.61M per individual.
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Talk to a Missouri CPA About Your Taxes →Missouri’s top income tax rate is 4.8%, applying to income above approximately $9,072. Missouri uses a graduated bracket system with rates starting at 1.5% and rising through several brackets to the 4.8% top rate. For most working adults, the effective rate is close to 4.8% because the lower brackets cover only the first $9,000 or so of income. Missouri has been reducing its rate from a prior top of 5.3%, with further reductions to 4.7% scheduled when revenue triggers are met.
Kansas City levies a 1% earnings tax on all wages and self-employment income earned within the city limits. Both residents of Kansas City and non-residents who work in Kansas City pay this tax. If you live in the suburbs but commute to a Kansas City office, your Kansas City wages are subject to the 1% earnings tax (withheld by your employer). If you work remotely for a Kansas City company but are not physically working in the city, you may not owe the tax — but this depends on specific apportionment rules. The tax must be renewed by Kansas City voters every 5 years under Missouri law.
Yes — the St. Louis 1% earnings tax applies to both St. Louis city residents and non-residents who earn income within the city of St. Louis. This is an important distinction: the city of St. Louis is an independent city, separate from St. Louis County. Suburban residents in St. Louis County, Chesterfield, Clayton, or other surrounding areas do not owe the earnings tax on income earned in those locations, but do owe it on income earned within the city of St. Louis boundaries. Employers in St. Louis city withhold and remit this tax.
Missouri provides a full Social Security exemption for single filers with AGI under $85,000 and married couples filing jointly with AGI under $100,000. For income above these thresholds, the exemption begins to phase out. Missouri’s thresholds are more generous than some states, meaning most middle-income retirees pay no Missouri state tax on their Social Security. This is one of Missouri’s genuine benefits for retirees, though the partial taxation at higher incomes limits it compared to states like Tennessee or Florida that have no income tax at all.
Missouri has one of the most fragmented sales tax systems in the country. The state rate is a low 4.225%, but Missouri allows an exceptionally large number of local taxing jurisdictions — cities, counties, transportation districts, community improvement districts, and special purpose districts — to each add their own sales tax rates. The result is that Kansas City and St. Louis areas can have combined rates of 9–10%, while rural Missouri might see 5.5–6.5%. You can look up the exact rate for any Missouri address at the Missouri Department of Revenue’s online rate finder.
No — Missouri has had no state estate tax since 2005, when the federal law change eliminated the state estate tax credit that Missouri’s tax had been tied to. Missouri also has no inheritance tax. For Missouri residents, only the federal estate tax applies, with the 2024 exemption of $13.61M per individual. This makes Missouri more favorable than states like Iowa or Nebraska that still have inheritance taxes on transfers to non-spouse heirs.
No — Missouri public pension benefits from MOSERS (Missouri State Employees’ Retirement System) are exempt from Missouri state income tax. Teachers’ retirement (PSRS/PEERS) is also exempt. Private pensions and IRA/401(k) distributions from private-sector employment are generally taxable at Missouri’s regular income tax rates. Military retirement income also receives favorable treatment in Missouri. This makes Missouri relatively attractive for public-sector retirees, though private-sector retirees face full taxation on retirement distributions.
Missouri and Kansas are neighboring states with similar income tax structures. Missouri’s top income tax rate is 4.8%, while Kansas’s top rate is 5.7% — giving Missouri a modest income tax advantage. Both states have no income tax on Social Security for lower incomes. Property taxes are comparable. Missouri’s unique burden is the 1% earnings tax in Kansas City and St. Louis, which affects urban workers specifically. Kansas has no comparable city earnings tax, though Kansas City, Kansas workers face Kansas state income tax. For suburban residents in either metro area who avoid the Missouri city earnings tax, Missouri’s 4.8% vs Kansas’s 5.7% gives Missouri a clearer advantage.