Personal income tax
Missouri's income tax system covers 11 tax brackets:
- No tax on the first $99 of income.
- 1.5 percent on taxable income between $100 and $1,000.
- 2 percent on taxable income between $1,001 and $2,000.
- 2.5 percent on taxable income between $2,001 and $3,000.
- 3 percent on taxable income between $3,001 and $4,000.
- 3.5 percent on taxable income between $4,001 and $5,000.
- 4 percent on taxable income of $5,001 and $6,000.
- 4.5 percent on taxable income of $6,001 and $7,000.
- 5 percent on taxable income of $7,001 and $8,000.
- 5.5 percent on taxable income of $8,001 and $9,000.
- 6 percent on taxable income of $9,001 and above.
Residents of the Show-Me State have to file state tax returns by April 15 or the next business day if that date falls on a weekend or holiday.
The Missouri Department of Revenue website has an online calculator to help filers figure their tax liability.
Some pension recipients may be eligible for a state exemption of up to $6,000 or 100 percent of taxable public pension money, not to exceed the taxpayer's maximum Social Security benefit.
Missouri's sales tax rate for most items is 4.225 percent.
Additional local levies may apply. Missouri's Department of Revenue offers a listing of current city and county sales and use tax rates, as well as listings for previous years.
Personal and real property taxes
Missouri local governments rely on property taxes levied on real property (real estate) and personal property. The Missouri State Tax Commission oversees the property assessment system. The amount of property taxes imposed on any taxpayer is determined by two separate factors:
- The assessed value of their taxable property, as established by the local assessor.
- The total of the tax rates that have been set by the governing bodies of local governments where the property is located, plus the 3-cent (per $100 valuation) state tax rate.
Real property is assessed based on its use. Residential property is assessed at 19 percent of value, agricultural is 12 percent of value and commercial is 32 percent of value.
Some personal property is exempt, including household goods, inventories, apparel and items of personal use and adornment. Exempt real estate includes property owned by governments and property used as nonprofit cemeteries, exclusively for religious worship, for schools and colleges and for purely charitable purposes.
The Missouri Property Tax Credit Claim is a program to give credit to certain senior citizens and 100 percent disabled individuals for a portion of the real estate taxes or rent they have paid for the year. The credit is for a maximum of $750 for renters and $1,100 for owners who owned and occupied their home. The actual credit is based on the amount of real estate taxes or rent paid and total household income.
Inheritance and estate taxes
Missouri has no inheritance tax.
Because the IRS will not allow a state death tax credit for deaths after Jan. 1, 2005, no Missouri estate tax is imposed and no estate tax return is required for deaths occurring after that date.
Other Missouri tax facts
The Missouri Department of Revenue maintains several Tax Assistance Centers that provide regional access for taxpayers seeking tax information and assistance.
Under Missouri's nonresident entertainer tax law, state venues are required to withhold 2 percent of the gross compensation (if more than $300) paid to nonresident entertainers who perform in the state. If the venue does not withhold the 2 percent of gross compensation, the professional entertainer is responsible for registering as a transient employer.
For the 2014 tax year, 75 percent of military pension income is exempt from Missouri state tax. The exemption will increase 15 percent annually until Jan. 1, 2016, when all military pension income will be free from Missouri state tax. Pension Exemption is claimed on Form MO-1040, MO-A, Part 3, Section D.