Missouri State Tax Guide: What You’ll Pay in 2024

Missouri retirees pay state tax on pensions and Social Security for tax year 2023, but they also can take some exemptions. Missourians saw their top state income tax rate dip slightly in 2023, and it declined again as of Jan. 1, 2024. But Missouri’s sales tax is higher compared to other states, and even groceries are taxed.

• Income tax: 2.00 to 4.95 percent 
  Missouri has a graduated individual income tax, with rates ranging from 2 percent to 4.95 percent. Some municipalities, including St. Louis and Kansas City, also collect local income tax.

• Property tax: 1.01 percent of a home’s assessed value (average)
  Real estate taxes vary in Missouri, with an average tax rate of 1.01 percent of a home’s assessed value in 2021, according to the Tax Foundation.

• Sales tax: 8.38 percent (average combined state and local)
  Missouri has a 4.225 percent state sales and use tax, but cities and counties may impose a local sales tax. The average combined state and local sales tax rate is 8.38 percent, according to the Tax Foundation.

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Missouri’s individual income tax rates range from 2 percent to 4.95 percent for tax year 2023. If you live or work in St. Louis or Kansas City, you’ll also pay a 1 percent local income tax.

The state’s eight tax brackets are below. Rates are the same for joint and single filers. Not all of your income is taxed at the same rate. For example, if you’re a single filer and earned $80,000 in taxable income, the first $1,207 is not taxed. The next $1,207 to $2,414 is taxed at 2 percent, the next $2,414 to $3,621 is taxed at 2.5 percent and so on.

Source: Missouri Department of Revenue

Missouri provides a calculator to compute your individual income tax.

Watch the video below to learn how to identify your 2023 federal income tax brackets.

Missouri partially taxes pensions and other retirement income.

For tax year 2023, public pensions are exempt from state tax for those who meet income requirements ($85,000 for a single person or $100,000 for a married couple filing jointly). The total exemption cannot be more than $44,683 per taxpayer.

Those with private pensions (including annuities, IRAs and 401(k)s funded by a private source) who meet income requirements can take an exemption of up to $6,000 per taxpayer. To claim the exemption, your income cannot exceed $25,000 for a single person, $32,000 for a married couple filing jointly, or $16,000 for a married person filing separately.

Find more information about how pensions are taxed on the Missouri Department of Revenue website.

Military pensions are not taxed. Scroll down for more information about military benefits.

AARP's retirement calculator can help you determine if you are saving enough to retire when — and how — you want.

Investment income is taxed at the same rate as other income. If the income is included in your adjustable gross income on your federal return, it will be taxable on your state return.

Yes, for tax year 2023. But benefits are fully deductible for Missourians 62 and older with an adjusted gross income of less than $85,000 (or $100,000 for a married couple filing jointly). If your income exceeds those limits, you may qualify for a partial deduction.

As of Jan. 1, 2024, Social Security benefits are exempt from state tax, under a law passed in 2023. The change will impact taxes filed in 2025.

Also, you may pay federal taxes on a portion of your Social Security benefits, depending on your income. Up to 50 percent of your benefits will be taxed if you file an individual tax return and make between $25,000 and $34,000 in total income — or if you file jointly and as a household make $32,000 to $44,000 in total income. And up to 85 percent of your benefits will be taxed by the federal government if your total income is more than $34,000 individually or $44,000 as a couple.

AARP's Social Security calculator can assist you in determining when to claim and how to maximize your Social Security benefits.

Property tax is a local tax based on the value of your home, which is assessed by the county. In Missouri, your home is assessed at 19 percent of its market value.

The average property tax rate in 2021 was 1.01 percent of the assessed value of your home, according to Tax Foundation data, although rates vary by county.

Your tax bill is calculated using a formula that takes into account your home’s assessed value and your county’s tax rate. County assessors reassess property every two years, in odd-numbered years. Missouri property taxes are paid annually and are due by Dec. 31.

Personal property such as cars, boats, trailers and aircraft is also taxed in Missouri. Most personal property is assessed at 33⅓ percent of its value.

The Missouri State Tax Commission has more information about property taxes, including how to file an appeal. To estimate your taxes, use Missouri’s property tax estimator.

• Sales and use tax: Missouri levies a 4.225 percent state sales and use tax on many, but not all, goods and services. Cities, counties and special taxing districts such as fire districts may impose an additional local sales and use tax. You can view your sales tax rate by entering your address here. A similar look-up tool, in the form of a map, is available here.
  
  Eyeglasses and contact lenses are taxable, but prescription drugs, insulin, dentures, prosthetic devices, durable medical equipment and hearing aids are exempt.

• Groceries: Missouri is one of just 13 states that tax groceries. Food is taxed at 1.225 percent, but local taxes may also apply.

• Gas and diesel: The motor fuel tax is 24.5 cents but will increase to 27 cents on July 1. The tax is paid by the supplier but passed on to the consumer at the pump in place of sales tax.

• Alcohol: Liquor is taxed at $2.00 per gallon; wine at 42 cents per gallon; beer at 6 cents per gallon. Alcohol is also subject to sales tax.

• Lottery prizes: Missouri taxes lottery winnings. The Missouri Lottery withholds 4 percent Missouri state tax on prizes of $600.01 or more, and 24 percent federal tax for winnings more than $5,000. Winners may owe additional taxes or receive a refund, based on their personal income.

Missouri does not levy an estate tax, nor does it have an inheritance tax.

Missouri offers a property tax credit for certain seniors and individuals who are 100 percent disabled. The credit is based on the amount of property tax paid and total household income, with the credit maxing out at $750 for renters and $1,100 for homeowners. The maximum household income to qualify depends on your tax filing status and if you rent or own. The Missouri Department of Revenue has more information.

Military veterans who are former prisoners of war with a 100 percent service-connected disability are exempt from Missouri property tax.

Missouri does not tax military pensions, and active duty members can deduct military income from their Missouri adjusted gross income.

The deadline for filing a Missouri state tax return is April 15. If you receive a six-month extension to file your federal taxes (until Oct. 15), you’ll automatically be granted an extension to file your Missouri taxes. An extension does not extend the time to pay. Any taxes owed must be paid by the original due date.

For help estimating your annual income taxes, use AARP's Tax Calculator.

Find more information about filing your state taxes on the Missouri Department of Revenue website.

Sharon Waters, a former CPA, has written for Wired.com and other publications.

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