Missouri collects state income tax on wages, investment income, and business earnings
Yes, Missouri has a state income tax. The state taxes wages, salaries, interest, dividends, and business income. Unlike some states that tax only certain types of income, Missouri's income tax applies broadly to most forms of earnings.
Missouri's income tax rates range from 1.5% to 5.3%, depending on your total income. The rate you pay increases as your income increases — this is called a progressive tax system. The state also allows you to claim the federal standard deduction or itemize deductions, which can lower the amount of income subject to Missouri tax.
If you work in Missouri but live in another state, or live in Missouri but work in another state, you may owe taxes to both states. However, Missouri offers a tax credit for income taxes paid to other states, which prevents you from being taxed twice on the same earnings.
Key Takeaways
- Missouri's state income tax rates range from 1.5% to 5.3% depending on your income level.
- The tax applies to wages, investment income, business earnings, and most other forms of income.
- You can reduce your taxable income by claiming the federal standard deduction or itemizing deductions on your Missouri return.
- If you paid income tax to another state, Missouri allows you to claim a credit against your Missouri tax bill.
- Self-employed individuals in Missouri must pay both income tax and self-employment tax on business earnings.
How Missouri income tax brackets work
Missouri uses tax brackets, which means different portions of your income are taxed at different rates. You do not pay the highest rate on all your income — only on the portion that falls within that bracket. For example, if the 5.3% rate applies to income over a certain threshold, only the dollars above that threshold are taxed at 5.3%.
The specific income thresholds change each year because Missouri adjusts them for inflation. This means the dollar amount where each rate begins is higher in 2024 than it was in 2023. When you file your return, you use the brackets for the tax year you are reporting — not the current year.
Your filing status (single, married filing jointly, married filing separately, or head of household) determines which brackets explore to you. Married couples filing jointly have wider brackets than single filers, which means more of their income falls into lower tax rates.
What income counts toward Missouri state tax
Missouri taxes W-2 wages from your employer, 1099 self-employment income, interest from savings accounts and bonds, stock dividends, rental income, and capital gains from selling investments. If you received income from any of these sources, you likely owe Missouri income tax on it.
Some types of income are not subject to Missouri income tax. These include Social Security benefits (with limited exceptions), certain retirement distributions, workers' compensation, and unemployment benefits. If you received a 1099 form from your employer or a financial institution, that income is almost certainly taxable in Missouri.
If you have income from multiple sources — for example, a W-2 job plus freelance work — you add all of it together to determine your tax bracket. This means earning extra income can push you into a higher bracket, even if each source individually would be taxed at a lower rate.
Deductions and credits that lower your Missouri tax
Missouri allows you to claim the federal standard deduction on your state return, which reduces the amount of income subject to tax. For 2024, the federal standard deduction is $14,600 for single filers and $29,200 for married couples filing jointly. Missouri does not offer a separate state standard deduction — you use the federal amount.
You can also claim certain tax credits, which directly reduce the tax you owe rather than reducing your income. Missouri offers credits for dependent children, education expenses, property taxes, and other situations. Credits are more valuable than deductions because they reduce your actual tax bill dollar-for-dollar, whereas deductions only reduce the income that gets taxed.
If you paid income tax to another state, Missouri allows you to claim a credit for those taxes. This credit prevents double taxation when you work in one state and live in another. The credit is limited to the lesser of the tax you paid to the other state or the Missouri tax you would owe on that income.
Who must file a Missouri income tax return
You must file a Missouri return if your income exceeds the filing threshold for your situation. Generally, this threshold is close to the federal standard deduction amount, but it varies by filing status and age. If you are claimed as a dependent on someone else's return, the threshold is lower.
Even if you do not owe tax, you may want to file if you had taxes withheld from your paychecks or if you are may have access to to a refundable credit. Filing allows you to recover any overpayment. Self-employed individuals must file if their net self-employment income is $400 or more, regardless of other income.
Missouri returns are filed with the Missouri Department of Revenue. You can file online using tax software, by mail, or through a tax professional. The important date is typically April 15, the same as the federal important date, though you can request an extension.
Self-employment tax in Missouri
If you are self-employed, you owe both Missouri income tax and federal self-employment tax. Self-employment tax covers Social Security and Medicare contributions and is calculated on your net business income. Missouri does not collect a separate self-employment tax — only the federal government does — but your self-employment income is still subject to Missouri income tax.
You can deduct half of your self-employment tax when calculating your Missouri taxable income, which provides some relief. You can also deduct legitimate business expenses — supplies, equipment, home office costs, and other ordinary expenses — which reduces the income subject to both federal and state tax.
If you have a side business or freelance income, keep records of all income and expenses. This documentation is essential if the Missouri Department of Revenue questions your return, and it makes filing much simpler.
How to file your Missouri income tax return
You will need your Social Security number, W-2 forms from employers, 1099 forms for other income, records of deductions or credits you plan to claim, and documentation of taxes paid to other states if applicable. Gather these documents before you start.
You can file using tax software (many programs offer free versions if your income is below a certain threshold), through a tax professional, or by downloading forms from the Missouri Department of Revenue website and filing by mail. Online filing is faster and reduces errors because the software catches common mistakes.
If you owe tax, you can pay online, by mail, or through a payment plan. If you are owed a refund, direct deposit is the fastest way to receive it. The Missouri Department of Revenue typically processes returns within 30 days if you file electronically.
Frequently Asked Questions
Does Missouri tax retirement income or pensions?
Missouri does not tax military pensions or certain public employee pensions. However, income from IRAs, 401(k)s, and other retirement accounts is generally taxable when you withdraw it. Social Security benefits are not taxed in Missouri except in rare circumstances. Check with a tax professional if you have a pension from a private employer.
What if I moved to Missouri partway through the year?
You owe Missouri income tax only on income earned while you were a Missouri resident. If you moved in July, you report income from July through December on your Missouri return and report income from January through June on your previous state's return. You will file returns in both states for that year.
Can I file my Missouri return if I do not have a Social Security number?
You need either a Social Security number or an Individual Taxpayer Identification Number (ITIN) to file. If you do not have one, you can request an ITIN from the IRS. Contact the Missouri Department of Revenue if you have questions about filing without a Social Security number.
What happens if I do not file a Missouri return when I owe tax?
The Missouri Department of Revenue can assess penalties and interest on unpaid tax. The longer you wait, the larger the penalty becomes. If you owe tax, filing as soon as possible — even if you cannot pay when ready — reduces the penalty. You can set up a payment plan with the state.
Is Missouri income tax deductible on my federal return?
Yes, you can deduct Missouri state income tax on your federal return if you itemize deductions. However, the total of all state and local taxes (income, sales, and property) is capped at $10,000 per year on your federal return. If your state and local taxes exceed this amount, you can only deduct $10,000.