Missouri collects state income tax on wages, retirement income, and investment earnings

Yes, Missouri has a state income tax. The state taxes wages, retirement distributions, interest, dividends, and capital gains. Unlike some states that tax only certain types of income, Missouri applies its tax broadly to most forms of personal income.

The tax rate depends on your total income for the year. Missouri uses a progressive tax system, meaning higher earners pay a higher percentage. The rates range from 1.5% on the lowest bracket to 5.3% on the highest, as of 2024. These rates can change year to year, so you should check the Missouri Department of Revenue website for the current year's brackets before filing.

Most people pay Missouri income tax through withholding from their paychecks. Your employer deducts an amount based on the W-4 form you complete when hired. Self-employed people and those with other income sources typically make quarterly estimated tax payments directly to the state.

Key Takeaways

  • Missouri taxes income at rates between 1.5% and 5.3%, depending on your income level and filing status.
  • Most employees have state income tax withheld automatically from their paychecks based on their W-4 form.
  • Self-employed people and those with investment income often need to make quarterly estimated tax payments to Missouri.
  • Certain types of income, including Social Security benefits and some retirement distributions, may be partially or fully exempt from Missouri state tax.

Who has to pay Missouri state income tax

You must file a Missouri state income tax return if you are a resident and your income exceeds the filing threshold for your filing status. The threshold varies by age and filing status — single filers under 65 typically have a lower threshold than married filers or those over 65. Check the Missouri Department of Revenue website for the exact threshold that applies to you.

Non-residents who earned income in Missouri may also owe state tax on that income, even if they live in another state. This applies to people who worked in Missouri for part of the year or had business income from Missouri sources.

Income types that Missouri taxes

Missouri taxes W-2 wages, self-employment income, interest, dividends, capital gains, and retirement distributions. If you receive a 1099 form from an employer, client, or financial institution, that income is generally taxable in Missouri.

Certain income is exempt or partially exempt. Social Security benefits are not taxed by Missouri. Distributions from a traditional IRA or 401(k) are taxable, but some retirees may may have access to for a retirement income exclusion depending on their age and total income. Military retirement pay and some pension income may also may have access to for partial exemption. The rules for retirement income exclusions change based on your age and income level, so review the current year's instructions or contact the Missouri Department of Revenue if you receive pension or retirement distributions.

How the tax brackets work

Missouri's tax brackets are set by income level and filing status. A single filer in a lower bracket pays 1.5% on income up to a certain amount, then moves to the next bracket and pays a higher percentage on income above that threshold. This does not mean your entire income is taxed at the higher rate — only the portion that falls within each bracket.

For example, if the first bracket ends at $1,000 and you earn $1,500, you pay 1.5% on the first $1,000 and the next bracket's rate on the remaining $500. The exact bracket thresholds and rates change annually and depend on whether you file as single, married filing jointly, married filing separately, or head of household. The Missouri Department of Revenue publishes updated brackets each year, usually by early spring.

Withholding and estimated tax payments

When you start a job in Missouri, your employer will ask you to complete a Missouri W-4 form (or use the federal W-4 if the employer accepts it). This form tells your employer how much state income tax to withhold from each paycheck. The amount withheld depends on your income, filing status, and the number of dependents you claim.

If you are self-employed, a contractor, or have income that is not subject to withholding, you may need to make quarterly estimated tax payments. These are due on April 15, June 15, September 15, and January 15 of the following year. You calculate the estimated payment based on your expected annual income and submit it directly to the Missouri Department of Revenue. Underpaying estimated taxes can result in penalties and interest.

If too much tax is withheld during the year, you will receive a refund when you file your return. If too little is withheld, you will owe the difference when you file. You can adjust your withholding at any time by submitting a new W-4 to your employer.

Filing your Missouri state return

Missouri residents file their state return using Form MO-1040, the state's individual income tax return. You can file by mail, electronically through the Missouri Department of Revenue website, or through a tax software provider. Most people file at the same time they file their federal return, which is typically by April 15.

You will need your W-2 forms from employers, 1099 forms for other income, and records of any deductions or credits you plan to claim. Missouri allows you to take either the standard deduction or itemize deductions, similar to the federal return. Some credits, such as the Earned Income Tax Credit, may be available at the state level as well.

If you file late or owe taxes you cannot pay by the deadline, contact the Missouri Department of Revenue about payment plans or extensions. Filing an extension gives you until October 15 to file your return, but taxes are still due by April 15 — an extension only extends the filing deadline, not the payment deadline.

Frequently Asked Questions

Does Missouri tax Social Security income?

No. Missouri does not tax Social Security benefits. However, if you have other income in addition to Social Security, that other income is still subject to Missouri state tax if it exceeds the filing threshold for your age and filing status.

What if I moved to Missouri partway through the year?

You are considered a resident for the part of the year you lived in Missouri and a non-resident for the part you lived elsewhere. You may need to file returns in both states. Missouri will tax your income earned while you were a resident, and your former state may tax income earned while you lived there. File in both states and claim any credits for taxes paid to avoid double taxation.

Can I claim dependents on my Missouri return?

Yes. You can claim dependents on your Missouri return if you also claim them on your federal return. The dependent must meet the IRS definition of a dependent, and you must provide their Social Security number on your return.

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

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 garnish your wages. If you cannot pay in full, contact the Department of Revenue about a payment plan before enforcement action begins.