Missouri has a state income tax that applies to wages, investment income, and other earnings

Yes, Missouri collects state income tax. If you live in Missouri or earn income there, you will owe state income tax on most types of earnings — wages from a job, self-employment income, interest, dividends, and retirement distributions. The state tax is separate from federal income tax, meaning you file both a federal return and a Missouri return.

Missouri's income tax rates range from 1.5% to 5.3% depending on your income level. The exact rate you pay depends on your filing status and total income. Unlike some states, Missouri does not have a flat tax rate — the more you earn, the higher the percentage you pay, up to the maximum of 5.3%.

You will report your Missouri income tax on Form MO-1040, the Missouri Individual Income Tax Return. This form works similarly to the federal Form 1040 but applies only to Missouri state tax. Most people file both forms at the same time, usually in April.

Key Takeaways

  • Missouri residents and anyone earning income in Missouri must file a state income tax return if their income exceeds the filing threshold for their situation.
  • Missouri tax rates are progressive, starting at 1.5% and reaching a maximum of 5.3%, based on your total income and filing status.
  • You report Missouri state income tax on Form MO-1040, which you file separately from your federal return.
  • Missouri allows a standard deduction that reduces your taxable income, similar to the federal standard deduction but with different dollar amounts.
  • Certain types of income, such as Social Security benefits and some retirement distributions, may be partially or fully exempt from Missouri state tax.

Who must file a Missouri income tax return

You must file a Missouri return if your income exceeds the filing threshold set by the state. The threshold varies based on your age and filing status. For the 2024 tax year, a single person under 65 must file if their income is $13,000 or more. A married couple filing jointly must file if their combined income is $26,000 or more. These thresholds change each year, so check the current year's instructions on the Missouri Department of Revenue website.

Even if your income is below the threshold, you may want to file anyway if you had taxes withheld from your paychecks or if you are due a refund. Filing allows you to recover any overpayment. Additionally, if you are self-employed, you may need to file to pay self-employment tax, which is separate from income tax.

If you moved to Missouri during the year or moved out of Missouri, you may owe part-year resident tax. You will report only the income earned while you lived in Missouri on your state return.

Missouri tax rates and how they work

Missouri uses a progressive tax system with multiple tax brackets. This means different portions of your income are taxed at different rates. The lowest rate is 1.5% on the first portion of your income, and the rate increases as your income rises. The highest rate, 5.3%, applies only to income above a certain threshold that depends on your filing status.

For example, if you are single and earn $50,000, you do not pay 5.3% on all of it. Instead, you pay 1.5% on the first bracket, then 2% on the next bracket, and so on, until you reach the portion of income that falls into the 5.3% bracket. Only that top portion is taxed at 5.3%. The Missouri Department of Revenue publishes tax tables each year showing exactly how much tax you owe at each income level.

The standard deduction in Missouri reduces your taxable income before the tax is calculated. For 2024, the standard deduction for a single filer is $13,000, and for married filing jointly it is $26,000. If you are 65 or older, you receive an additional standard deduction. You can also itemize deductions instead of taking the standard deduction if your itemized deductions are higher.

Income that is taxed and income that is not

Most types of income are subject to Missouri state tax: wages and salaries, self-employment income, interest, dividends, capital gains, rental income, and distributions from retirement accounts. However, Missouri exempts certain types of income from state tax.

Social Security benefits are not taxed by Missouri, even if they are taxable on your federal return. Certain retirement income is also exempt or partially exempt. If you are 59½ or older, distributions from a traditional IRA or 401(k) may may have access to for a partial exemption, though the rules are complex and depend on your total income and filing status. Military pensions and some other government pensions also receive special treatment under Missouri law.

Interest from U.S. Treasury bonds and certain other federal securities is exempt from Missouri tax, though it is still taxable at the federal level. If you have income from sources outside Missouri, you generally do not owe Missouri tax on that income unless you are a Missouri resident.

How to file your Missouri income tax return

You file your Missouri return using Form MO-1040. You can obtain this form from the Missouri Department of Revenue website or request it by mail. The form asks for your personal information, filing status, income from all sources, deductions, and credits. You then calculate your tax liability and determine how much you owe or how much you are due as a refund.

If you had taxes withheld from your paychecks during the year, those withholdings are credited toward your Missouri tax liability. Your employer withholds Missouri tax based on the W-4 form you complete. If too much was withheld, you receive a refund. If too little was withheld, you owe the difference when you file.

You can file your Missouri return on paper by mailing it to the Missouri Department of Revenue, or you can file electronically through approved tax software or through a tax professional. Electronic filing is faster and reduces errors. The filing important date is typically April 15, the same as the federal important date, though you can request an extension if needed.

Credits and deductions available in Missouri

Missouri offers several tax credits that reduce your tax liability dollar-for-dollar. A tax credit is more valuable than a deduction because it directly reduces the tax you owe. The Earned Income Tax Credit (EITC) is available to low- and moderate-income workers and is based on your federal EITC. Missouri's version provides an additional state credit on top of the federal credit.

Other credits include the Child and Dependent Care Credit, which helps offset the cost of childcare while you work, and the Dependent Exemption Credit for each dependent you claim. Some credits are refundable, meaning if the credit is larger than your tax liability, you receive the difference as a refund. Others are non-refundable, meaning they can only reduce your tax to zero.

In addition to credits, you can deduct certain expenses from your income. Common deductions include mortgage interest, property taxes, charitable contributions, and medical expenses above a certain threshold. You choose either the standard deduction or itemized deductions, whichever is larger. Most people benefit from the standard deduction because it is simpler and often larger than their itemized deductions.

What happens if you do not file or pay on time

If you owe Missouri income tax and do not file by the important date, the state charges a failure-to-file penalty. This penalty is typically 5% of the unpaid tax for each month the return is late, up to a maximum of 25%. Additionally, interest accrues on any unpaid tax at a rate set by the state, compounded daily.

If you file on time but do not pay the tax you owe, you face a failure-to-pay penalty of 0.5% per month, plus interest. These penalties add up quickly, so it is better to file and pay what you can, even if you cannot pay the full amount. You can also request a payment plan with the Missouri Department of Revenue if you cannot pay in full by the important date.

If you believe you will owe tax and cannot pay by April 15, you can request an automatic extension to file. An extension gives you until October 15 to file your return, but it does not extend the time to pay. You should still pay any estimated tax by April 15 to minimize penalties and interest.

Frequently Asked Questions

Do I have to file a Missouri return if I only lived there part of the year?

Yes, if you earned income while living in Missouri, you must file a part-year resident return. You report only the income earned during the months you lived in Missouri and claim the standard deduction or itemized deductions for that portion of the year. The Missouri Department of Revenue provides instructions for calculating part-year resident tax on their website.

Is Missouri retirement income taxed differently than other income?

Some retirement income receives preferential treatment in Missouri. If you are 59½ or older, you may be able to exclude a portion of your retirement account distributions from state tax, but the amount depends on your total income and filing status. Social Security is never taxed by Missouri. Military pensions and certain government pensions also have special exemptions. Check the Missouri Department of Revenue website or speak with a tax professional about your specific situation.

What if I owe federal tax but not Missouri tax?

It is possible to owe federal tax but not Missouri tax if your income is below Missouri's filing threshold or if you have enough deductions and credits to eliminate your Missouri liability. You would still file a federal return and pay federal tax, but you would not file a Missouri return. However, if you had Missouri taxes withheld from your paychecks, you should file a Missouri return to claim your refund.

Can I file my Missouri return electronically?

Yes, you can file electronically through approved tax software, through a tax professional, or through the Missouri Department of Revenue's online filing system. Electronic filing is faster than paper filing and reduces the chance of errors. Most tax software that handles federal returns also handles Missouri returns.

What if I made a mistake on my Missouri return?

You can file an amended Missouri return using Form MO-1040X if you discover an error after filing. You must file the amended return within three years of the original filing date to claim a refund or within the time allowed by law to pay additional tax. Include an explanation of the changes you are making so the Missouri Department of Revenue understands the reason for the amendment.