Missouri collects state income tax on wages, but the rate is lower than most states
Yes, Missouri has a state income tax. The state taxes wages, salaries, interest, dividends, and other income sources. The tax rate ranges from 1.5% to 5.75% depending on your income bracket — the more you earn, the higher your rate. Missouri is one of 41 states that collect income tax; only nine states have no income tax at all.
Your employer typically withholds Missouri state income tax from your paycheck automatically, just like federal withholding. If you work in Missouri or live there, you will owe state tax on income earned in the state. If you live in Missouri but work in another state, the rules depend on where you earned the money and whether that state has reciprocal tax agreements with Missouri.
Key Takeaways
- Missouri's state income tax ranges from 1.5% on the lowest bracket to 5.75% on the highest, making it a progressive tax system where higher earners pay a higher percentage.
- Your employer should withhold Missouri state tax from your paycheck; if they do not, you are responsible for paying it when you file your state return.
- Retirees over 62 can exclude up to $6,000 of retirement income (pensions, Social Security, 401k withdrawals) from Missouri state taxation under current law.
- Missouri recognizes tax credits for dependent children, education expenses, and property taxes that can reduce what you owe when you file your return.
The tax brackets and rates for 2024
Missouri uses a progressive tax system with five income brackets. The lowest earners pay 1.5% and the highest pay 5.75%. The exact dollar amounts where each bracket begins change each year because they are adjusted for inflation.
For 2024, the brackets are roughly: 1.5% on income up to about $1,073; 2% on income from $1,073 to about $2,146; 2.5% on income from $2,146 to about $3,219; 3% on income from $3,219 to about $4,292; 4% on income from $4,292 to about $8,584; and 5.75% on income above $8,584. These thresholds apply to single filers; married couples filing jointly have higher thresholds. The Missouri Department of Revenue publishes the exact brackets each January.
The rate of 5.75% is lower than the national average top rate of about 7%, but higher than states like Colorado (4.63%) or Indiana (3.23%). If you are comparing Missouri's tax burden to another state, also factor in property taxes, sales taxes, and any local taxes — state income tax is only one piece of your total tax bill.
Who has to file a Missouri state return
You must file a Missouri state return if you lived in the state for any part of the year and earned income above a certain threshold. For 2024, that threshold is roughly $13,000 for single filers and $26,000 for married couples filing jointly. If you earned less than that, you generally do not have to file, though filing anyway may get you a refund if taxes were withheld from your pay.
If you moved to Missouri partway through the year, you file a part-year resident return. If you moved out of Missouri, you file a part-year resident return for the months you lived there. You will need to report only the income you earned while living in Missouri, not income from before you moved or after you left.
If you are self-employed or have income from sources other than a W-2 job — rental income, freelance work, investment gains — you may have to file even if your total income is below the threshold. The Missouri Department of Revenue website has a filing requirement worksheet to help you determine whether you must file.
Retirement income and the over-62 exclusion
Missouri offers a significant tax break for retirees. If you are 62 or older, you can exclude up to $6,000 of retirement income from your Missouri state tax return. This exclusion applies to pensions, distributions from 401(k) plans, IRAs, and Social Security benefits.
The exclusion is per person, not per household. If you are married and both spouses are 62 or older, you can each exclude up to $6,000, for a combined exclusion of $12,000. You claim this exclusion on your state return by filling out Schedule MO-Excl and attaching it to your Form MO-1040.
This exclusion does not apply to wages from a job. If you are 62 and still working, you cannot exclude your salary. The exclusion is only for retirement income — money you receive after you have stopped working or from retirement accounts you have already built up.
Tax credits that reduce what you owe
Missouri offers several tax credits that lower your state income tax bill. A tax credit is different from a deduction: a credit reduces your tax dollar-for-dollar, while a deduction reduces the income that gets taxed. Credits are more valuable.
The most common credits are the dependent exemption credit (for children and other dependents), the education credit (for tuition and student loan interest), and the property tax credit (if you own a home). Missouri also offers credits for adoption expenses, child care costs, and contributions to certain savings accounts. Each credit has income limits and specific rules about what counts.
You claim credits on your state return when you file. If you do not know which credits you might be may have access to to, the Missouri Department of Revenue publishes a guide to all available credits on its website. A tax preparer can also review your situation and identify credits you might have missed.
What happens if your employer does not withhold
Your employer is required by law to withhold Missouri state income tax from your paycheck if you live or work in Missouri. If they do not, you are still responsible for paying the tax. The state will not forgive the debt just because your employer failed to withhold.
If you notice that no Missouri tax is being withheld, talk to your payroll department first. It may be a mistake — they may have the wrong state listed, or they may have misunderstood your W-4 form. If they refuse to withhold after you ask, you can file a complaint with the Missouri Department of Revenue, but the faster solution is to set aside money from each paycheck yourself and pay it when you file your return.
When you file your state return, you report all income you earned and all taxes that were withheld. If more was withheld than you owe, you get a refund. If less was withheld, you owe the difference. If nothing was withheld, you will owe the full amount of tax due on your income.
Working across state lines and reciprocal agreements
If you live in Missouri but work in another state, the state where you worked generally gets to tax your wages first. Missouri then gives you a credit for taxes paid to the other state, so you do not pay tax twice on the same income. However, if the other state has no income tax (like Kansas or Oklahoma), you still owe Missouri tax on those wages.
Missouri has reciprocal tax agreements with Illinois and Kentucky. Under these agreements, if you live in Missouri and work in Illinois or Kentucky, you generally do not owe tax to that state — you only owe Missouri tax. You will need to file a form with the other state to claim the reciprocal agreement and avoid withholding. Your employer should know about this, but if they do not, contact the other state's tax department for the form you need.
If you work in a state with no reciprocal agreement and that state has no income tax, you owe only Missouri tax. If you work in a state with no reciprocal agreement and that state does have income tax, you owe tax to both states, but Missouri will credit you for what you paid to the other state.
Frequently Asked Questions
Does Missouri tax Social Security benefits?
No. Missouri does not tax Social Security benefits at all, regardless of your age or income. However, if you receive other retirement income (pensions, 401k withdrawals, IRA distributions), that income is taxable unless you are 62 or older and use the $6,000 retirement income exclusion.
What if I moved to Missouri partway through the year?
You file a part-year resident return and report only the income you earned while living in Missouri. You will need to show the date you moved. If you also lived in another state that year, you may have to file returns in both states, but Missouri will credit you for taxes paid to the other state.
Can I claim the retirement income exclusion if I am still working?
The $6,000 exclusion applies only to retirement income — pensions, IRA withdrawals, 401k distributions, and Social Security. Wages from a job do not count, even if you are 62 or older. If you have both retirement income and wages, you can exclude up to $6,000 of the retirement income only.
What if I owe more than I can pay when I file?
Contact the Missouri Department of Revenue. They offer payment plans for taxes owed. You can also request an extension to file your return, though taxes are still due by the original deadline — an extension only gives you more time to file, not more time to pay.
How do I know if my withholding is correct?
Use the Missouri withholding calculator on the Department of Revenue website. It asks about your income, deductions, and credits and tells you whether you are having too much or too little withheld. If your withholding is off, you can adjust it by giving your employer a new W-4 form.