Missouri collects state income tax on wages, investment income, and other earnings
Yes, Missouri has a state income tax. The state taxes wages, salaries, interest, dividends, capital gains, and other forms of income. Unlike some states that tax only specific types of income, Missouri's tax applies broadly to most earnings you receive.
The tax rate varies depending on how much you earn. Missouri uses a progressive tax system, meaning higher earners pay a higher percentage. The rates range from 1.5% on the lowest income bracket to 5.75% on the highest, though the exact brackets and rates can change year to year. You will owe Missouri state income tax if you live in the state or earn income there, even if you live elsewhere.
Key Takeaways
- Missouri taxes most types of income, including wages, self-employment income, interest, and investment gains.
- Tax rates are progressive, starting at 1.5% for the lowest earners and reaching 5.75% for the highest income bracket.
- You owe Missouri state income tax if you live in Missouri or earn income within the state.
- Your employer typically withholds Missouri state income tax from your paycheck automatically.
- Retirees may have some income sources that are taxed differently or partially exempt under Missouri law.
How Missouri income tax brackets work
Missouri's income tax brackets are adjusted each year for inflation, so the exact dollar amounts change annually. The state publishes updated brackets in early spring, before tax season. Your tax bracket depends on your filing status — single, married filing jointly, married filing separately, or head of household — and your total income for the year.
The lowest bracket starts at 1.5% and applies to the first portion of your income. As your income increases, you move into higher brackets with higher rates. This does not mean your entire income is taxed at the highest rate you reach — only the income within each bracket is taxed at that bracket's rate. For example, if you are single and earn $50,000, you pay 1.5% on the first portion, then 2% on the next portion, and so on, up to the bracket your $50,000 falls into.
What types of income Missouri taxes
Wages and salaries are the most common taxable income. If you work for an employer in Missouri or are a Missouri resident working elsewhere, you owe state income tax on your wages. Your employer should withhold this tax automatically from your paycheck.
Self-employment income is also taxable. If you run a business, freelance, or have other self-employment earnings, Missouri taxes that income. You will need to report it on your state tax return and may need to make quarterly estimated tax payments if you do not have an employer withholding taxes for you.
Investment income — including interest from savings accounts, dividends from stocks, and capital gains from selling investments — is taxable in Missouri. Long-term capital gains (profits from selling an investment you held for more than a year) are taxed the same way as ordinary income in Missouri, unlike the federal tax system.
Retirement income receives some special treatment. Social Security benefits are not taxed by Missouri. Distributions from traditional IRAs and 401(k) plans are taxable, but Missouri offers a pension and retirement income deduction that may reduce the amount you owe, depending on your age and income level.
How withholding works on your paycheck
When you start a job in Missouri, your employer asks you to complete a W-4 form (or Missouri-specific withholding form). This tells your employer how much state income tax to withhold from each paycheck. The amount withheld is based on your filing status, the number of dependents you claim, and any additional withholding you request.
Your employer sends the withheld tax to the Missouri Department of Revenue on your behalf. At the end of the year, you report your actual tax liability on your state income tax return. If too much was withheld, you receive a refund. If too little was withheld, you owe the difference when you file.
You can adjust your withholding at any time by submitting a new W-4 form to your employer. This is useful if your life circumstances change — for example, if you get married, have a child, or take a second job.
Filing a Missouri state income tax return
Most people who earn income in Missouri must file a state income tax return by April 15 (or the next business day if April 15 falls on a weekend). You file using Form MO-1040, the Missouri individual income tax return. The form asks for your income from all sources, deductions, and credits you are may have access to to claim.
Missouri allows you to take either the standard deduction or itemize deductions, similar to the federal system. The standard deduction amount varies by filing status and age. If you are 65 or older, you may be may have access to to a higher standard deduction.
You can file your return on paper by mailing it to the Missouri Department of Revenue, or you can file electronically through the state's website or using tax software. Electronic filing is faster and reduces the chance of errors.
Who does not have to file a Missouri return
You do not have to file a Missouri state income tax return if your income is below the threshold for your filing status. The threshold varies each year and depends on whether you are single, married, head of household, or another status. Generally, if your income is low enough that you do not owe federal income tax, you also do not owe Missouri state income tax.
However, even if you are not required to file, you may want to file anyway if taxes were withheld from your paychecks. Filing allows you to claim a refund of the withheld amount. Additionally, if you are may have access to to certain credits — such as the Earned Income Tax Credit — you must file to receive them.
Special situations and deductions in Missouri
Missouri offers several deductions and credits that can reduce your tax bill. The pension and retirement income deduction allows residents age 59½ or older to exclude a portion of retirement income, including distributions from IRAs and 401(k) plans. The amount you can exclude depends on your age and total income.
The Earned Income Tax Credit (EITC) is available to low- and moderate-income workers. Missouri's credit is based on the federal EITC, so if you may have access to for the federal credit, you likely may have access to for Missouri's as well. This credit can result in a refund even if you owe no tax.
If you are a student, you may be able to claim a deduction for student loan interest paid during the year. If you contributed to a traditional IRA, you may be able to deduct those contributions. The rules for these deductions vary based on your income and other factors, so review the instructions that come with the tax form or consult a tax resource.
Frequently Asked Questions
Do I have to pay Missouri income tax if I live in another state but work in Missouri?
Yes. Missouri taxes income earned within the state, regardless of where you live. You would file a Missouri return for the income you earned there. You may also owe income tax to your home state, depending on that state's rules. Some states offer credits to prevent you from being taxed twice on the same income.
Is Social Security taxed in Missouri?
No. Missouri does not tax Social Security benefits. However, other retirement income — such as distributions from IRAs and 401(k) plans — is taxable unless you may have access to for the pension and retirement income deduction.
What if I did not have enough tax withheld during the year?
When you file your return, you will owe the difference between the tax you owe and the amount that was withheld. You can pay this amount when you file. To avoid this in the future, adjust your W-4 form with your employer so more tax is withheld from each paycheck.
Can I file my Missouri return electronically?
Yes. The Missouri Department of Revenue accepts electronic returns through its website and through approved tax software. Electronic filing is faster than mailing a paper return and reduces errors.
What is the important date to file my Missouri income tax return?
The important date is April 15 of the year following the tax year, or the next business day if April 15 falls on a weekend or holiday. If you need more time, you can request an extension, though an extension to file does not extend the important date to pay any taxes you owe.