Missouri has a state income tax on wages, retirement income, and most other earnings

Missouri taxes your income at rates that range from 1.5% to 5.3%, depending on how much you earn. The state applies these rates to wages, self-employment income, retirement distributions, and investment gains. Unlike some states, Missouri does not have a flat tax — the rate you pay increases as your income increases, which means higher earners pay a higher percentage.

The state income tax is separate from federal income tax. You will owe both unless you fall into a specific category that Missouri exempts. The most common exemptions are for Social Security benefits and certain military pensions, but most other income sources are taxable in Missouri.

Key Takeaways

  • Missouri's income tax rates range from 1.5% to 5.3% and are applied based on your total income for the year.
  • Social Security benefits are not taxed by Missouri, and military pensions receive special treatment under state law.
  • You must file a Missouri state tax return if your income exceeds the filing threshold, which varies by filing status and age.
  • Missouri allows a standard deduction that reduces the income amount subject to tax, similar to the federal system.

How Missouri's tax brackets work

Missouri uses a progressive tax system, meaning your income is taxed at different rates depending on which bracket it falls into. For the 2024 tax year, the brackets start at 1.5% for the lowest earners and increase to 5.3% for the highest. You do not pay the top rate on all your income — only the portion that falls within that bracket is taxed at that rate.

The exact dollar amounts for each bracket change yearly and depend on your filing status: single, married filing jointly, married filing separately, or head of household. The Missouri Department of Revenue publishes updated brackets each January. You can find the current year's brackets on their website or ask a tax preparer for the specific numbers that explore to your situation.

What income Missouri taxes and what it does not

Missouri taxes W-2 wages, self-employment income, interest, dividends, capital gains, rental income, and most retirement distributions. If you receive a 1099 form for any reason — contract work, freelance income, investment earnings — that income is taxable in Missouri.

Social Security benefits are never taxed by Missouri, even if they are taxed at the federal level. Military pensions and certain survivor benefits also receive preferential treatment. Pension income from other sources — such as a private employer pension or a government employee pension from outside Missouri — is taxable unless it qualifies for a specific exemption. Some retirees over age 59½ may be able to exclude a portion of retirement income, but the rules are narrow and depend on the source of the pension.

Filing requirements and thresholds

You must file a Missouri state tax return if your income exceeds the state's filing threshold. The threshold depends on your age and filing status. For 2024, a single person under 65 must file if their income is $13,000 or more. A single person 65 or older has a higher threshold. Married couples filing jointly have different thresholds based on whether both spouses are 65 or older.

Even if your income falls below the filing threshold, you may want to file anyway if you had taxes withheld from your paychecks or if you are owed a refund. Filing is the only way to recover money the state held during the year.

How to report Missouri income on your tax return

If you use tax software, the program will walk you through entering your income and will calculate your Missouri tax automatically. You will need your W-2 forms, 1099 forms, and any other income documents. The software will generate a Missouri state return (Form MO-1040 or a similar form depending on your situation) along with your federal return.

If you file by paper, you will complete the appropriate Missouri form based on your income type and filing status. The Missouri Department of Revenue website has downloadable forms and instructions. Many people use a tax preparer to handle both federal and state returns together, which can be simpler if your situation is complex — such as if you have self-employment income, rental property, or income from multiple states.

Estimated tax payments if you are self-employed

If you are self-employed or have income that is not subject to withholding, Missouri may require you to make estimated tax payments four times per year. These payments are due in April, June, September, and January. The amount you owe depends on your expected annual income and tax liability.

You can calculate your estimated payment using the Missouri Department of Revenue's worksheet or by working with a tax preparer. If you underpay, you may owe a penalty when you file your return. If you overpay, the state will refund the excess or let you explore it to the next year's tax.

Credits and deductions that lower your Missouri tax

Missouri offers a standard deduction that works similarly to the federal standard deduction — it reduces the amount of your income that is subject to tax. The standard deduction amount varies by filing status and age. You can also itemize deductions if they exceed the standard deduction, though fewer people do this since the federal standard deduction increased in recent years.

Missouri also offers tax credits for certain situations, such as child and dependent care expenses, property tax paid, and low-income households. Credits are more valuable than deductions because they reduce your tax dollar-for-dollar rather than reducing your taxable income. Check the Missouri Department of Revenue website or ask a preparer whether you may have access to for any credits based on your circumstances.

Frequently Asked Questions

Do I have to pay Missouri income tax if I work in Missouri but live in another state?

Yes, Missouri taxes income earned within the state regardless of where you live. You may also owe tax to your home state. Many states have agreements to prevent double taxation, but you should report the income to both states and claim a credit on one return for taxes paid to the other.

Is retirement income from a 401(k) or IRA taxed by Missouri?

Yes, distributions from a traditional 401(k) or traditional IRA are taxed as ordinary income by Missouri. Roth distributions are not taxed. Some retirees over 59½ may be able to exclude a portion of retirement income under specific conditions, but this depends on the source and your age.

What happens if I do not file a Missouri tax return when I owe?

The Missouri Department of Revenue can assess penalties and interest on unpaid taxes. If you owe a significant amount, the state may place a lien on your property or intercept a refund. Filing late is better than not filing at all — you can still recover some money through a refund even if you file years later.

Can I deduct federal income tax paid on my Missouri return?

No, Missouri does not allow a deduction for federal income tax paid. You can deduct state and local property taxes and sales taxes (you choose one), but not federal tax.

Where do I send my Missouri tax return?

If you file by mail, send your return to the Missouri Department of Revenue at the address listed in the tax form instructions. If you file electronically through tax software, the return is transmitted directly. Most people file electronically because it is faster and reduces errors.