Missouri

Tax Rate Range: - 1.5%; High - 6%
Income Brackets: Lowest - $1,000; Highest - $9,000 [Tax is imposed at a rate of 1-1/2 percent on the first $1,000 of taxable income and increases at a rate of 1/2 percent for every $1,000 increment up to $9,000. The tax rate is 6 percent on Missouri taxable income exceeding $9,000.]
Number of Brackets: 10
Personal Exemptions: Single - $2,100; Married - $4,200; Dependents - $1,200; Plus $1,000 for dependent 65 or older.
Standard Deduction: Single - $5,150; Married filing jointly - $10,300. Deduction increases for those age 65 and older.
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: The state allows a deduction on your individual income tax return for the amount of federal tax you paid. The deduction is for the amount actually paid as indicated on your federal tax form.
Retirement Income Taxes: For taxable years beginning in 2007, Missouri resident taxpayers are allowed a state income tax deduction for Social Security benefits received by individuals 62 years of age or older, Social Security disability benefits, and nonprivate retirement system benefits received by individuals 62 years of age or older, to the extent these benefits are included in federal adjusted gross income. Generally, the maximum amount of benefits that can be deducted is as follows: 20% for 2007; 35% for 2008; 50% for 2009; 65% for 2010; 80% for 2011; and 100% for 2012 and thereafter. However, in the case of nonprivate retirement benefits, the deduction is further limited to $6,000, and the amount of benefits for which the deduction may be claimed is limited to the maximum Social Security benefit amount for the tax year. A single taxpayer, head of household, qualifying widow(er), or married taxpayer filing a separate return with an adjusted gross income of $85,000 or less or a married taxpayer filing a combined return with an adjusted gross income of $100,000 or less will qualify for the maximum deduction. If a taxpayer's adjusted gross income exceeds the ceiling amount for the taxpayer's filing status, the deduction will be decreased by $1 for every $1 by which the taxpayer's income exceeds the ceiling amount. If a taxpayer receives both Social security benefits and nonprivate retirement benefits, the maximum deduction for the nonprivate retirement benefits will be decreased by $1 for every $1 of Social security benefits received by the taxpayer that are not included in Missouri adjusted gross income.
Retired Military Pay: For individuals with a modified state adjusted gross income of less than $25,000 or a married couple with a combined income of $32,000, a government pension exemption of up to $6,000 is allowed. If a husband and wife each receive a government pension, each can qualify for an exemption of up to $6,000. SBP benefits are taxed following federal rules.

State Tax Software

Military Disability Retired Pay: Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Sales Taxes

State Sales Tax: 4.225% (prescription drugs exempt; food is taxed at 1.225%)
Gasoline Tax: 17.6 cents/gallon
Diesel Fuel Tax: 17.6 cents/gallon
Cigarette Tax: 17 cents/pack of 20

Property Taxes

Residential property is assessed at 19% of its fair market value. Personal property is assessed at rates ranging from 5% to 33.3%. The Missouri Property Tax Credit Claim gives 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 and can only be claimed on the home they occupied during the period being claimed. The actual credit is based on the amount of real estate taxes or rent paid and total household income.
The Homestead Preservation Credit gives qualified senior citizens and 100 percent disabled individuals a credit on their real estate property tax if those taxes increase 2.5 percent in a non-reassessment year or 5 percent in a reassessment year. The credit would be for the amount that exceeds the 2.5 or 5 percent increase in taxes. The act requires a legislative appropriation to fund the credit. If the funding is less than 100 percent, the credit will be a flat statewide percentage based on the appropriation amount. This credit will be applied against the taxes for the following year. Call 573-751-3503 for details or click here.

Estate Taxes

Since the IRS will no longer allow a state death tax credit for deaths occurring on or after January 1, 2005, no Missouri estate tax is imposed. Therefore, no estate tax return must be filed for deaths occurring on or after January 1, 2005.
For information about moving to Missouri, click here. For further information about state taxes, visit the Missouri Department of Revenue site.