Missouri's property tax credit has income limits that depend on your filing status and the type of property you own

Missouri's Property Tax Credit reduces the state income tax you owe based on the property taxes you paid on your home. The program has income thresholds — if your income exceeds them, you cannot claim the credit. The limits change each year because they are tied to federal poverty guidelines. For the 2023 tax year, the income limit for most homeowners is around $31,000 for single filers and $62,000 for married couples filing jointly, though these figures vary by household size and composition.

The credit itself is not a refund or a direct payment. It reduces your Missouri state income tax liability dollar-for-dollar, up to a maximum amount. If you owe no state income tax, the credit does not help you. The program is designed for homeowners with modest incomes who carry a property tax burden that is high relative to what they earn.

Key Takeaways

  • Income limits for Missouri's Property Tax Credit are set annually and tied to federal poverty levels, so you must check the current year's threshold before filing.
  • The limit depends on your household size and filing status — a single person has a lower threshold than a married couple or a household with dependents.
  • You must own and occupy the property as your primary residence to be counted; rental properties and vacation homes do not may have access to.
  • If your income is at or below the limit, you still must file Form MO-CR to claim the credit on your state return.

How Missouri calculates the income limit each year

Missouri's Department of Revenue publishes updated income limits every January for that tax year. The limits are based on 150 percent of the federal poverty line for your household size. This means the threshold rises slightly most years as the federal poverty guideline increases. You can find the current year's limits on the Missouri Department of Revenue website or in the instructions to Form MO-CR, which is the form you use to claim the credit.

The income limit applies to your federal adjusted gross income (AGI) — the same number you report on your federal tax return. It does not include Social Security benefits, certain retirement distributions, or other income sources that are excluded from federal taxation. If you are unsure whether a particular income source counts toward the limit, the Form MO-CR instructions list what is and is not included.

Income limits by household size and filing status

The threshold varies based on how many people live in your household and how you file. A single person living alone has a lower income limit than a married couple, and a household with children or dependents has a higher limit than one without. Missouri groups households into categories: single, married filing jointly, head of household, and married filing separately.

Because the limits change annually, you should not rely on last year's threshold. The Missouri Department of Revenue publishes a table each year showing the exact limit for each household type. If your income is close to the cutoff, calculate it carefully — being even $1 over the limit disqualifies you from the credit entirely. The Form MO-CR instructions include a worksheet to help you determine whether you fall within the limit.

What counts as income for the property tax credit

Income for the property tax credit includes wages, self-employment income, interest, dividends, rental income, and most other sources of money. It also includes certain retirement distributions and pension income. However, some income sources are excluded: Social Security benefits are not counted, and certain distributions from IRAs or 401(k)s may be excluded if they meet specific conditions.

If you received unemployment benefits, those count toward your income limit. If you received a stimulus payment or tax refund, those do not. The key is to use the same AGI you reported on your federal return — that is your starting point. Then add back any income that is excluded from federal taxation but counts for Missouri purposes. The Form MO-CR instructions walk through this calculation step by step.

What happens if your income exceeds the limit

If your income is above the threshold for your household size, you cannot claim the property tax credit, even if you own your home and paid property taxes. There is no partial credit or phase-out — the limit is a hard cutoff. You either may have access to or you do not. This is different from some other tax credits that reduce gradually as income rises.

If your income was over the limit last year but drops below it this year, you can claim the credit for the current year. Similarly, if you were under the limit but your income rose above it, you lose the credit for that year. You must recalculate your may be able to access every tax year because your circumstances change.

How to verify your income against the current limit

Start by gathering your 2023 federal tax return (or whichever year you are filing for). Find your AGI on line 11 of Form 1040. Then locate the current year's income limits on the Missouri Department of Revenue website or in the Form MO-CR instructions. Match your household size and filing status to the correct limit. If your AGI is at or below that number, you meet the income requirement.

If you are close to the limit and unsure whether you may have access to, use the worksheet in the Form MO-CR instructions. It walks you through which income sources to include and which to exclude. If you still have questions, you can contact the Missouri Department of Revenue directly — they have a phone line for taxpayer questions, and the number is in the Form MO-CR instructions.

Other requirements beyond the income limit

Meeting the income limit is necessary but not sufficient. You must also own and occupy the property as your primary residence on December 31 of the tax year. You cannot claim the credit for a second home, a rental property, or a property you own but do not live in. You must also have paid property taxes on that home during the year — renters do not may have access to because they do not pay property taxes directly.

Additionally, your property tax burden must be at least 3 percent of your federal AGI for you to receive any credit. This means if your income is very high relative to your property taxes, the credit may be zero even if you are under the income limit. The Form MO-CR instructions include a calculation to determine your actual credit amount once you confirm you meet the income threshold.

Frequently Asked Questions

Does Social Security count toward the income limit?

No. Social Security benefits are excluded from the income calculation for the property tax credit. Use your federal AGI as your starting point, which already excludes Social Security. If you received other types of income, those do count.

What if I am married but file separately?

If you file married filing separately, each spouse has a separate income limit, which is lower than the married filing jointly limit. You can each claim the credit on your individual returns if you both meet the threshold. This is rarely the better choice, but it is an option if one spouse has very high income.

Can I claim the credit if I own the home but my spouse does not?

Yes. Only one spouse needs to own the property for it to may have access to. However, you must file jointly to claim the credit, and the income limit applies to your combined household income. If you file separately, the spouse who owns the home can claim it on their individual return.

What if my income was over the limit but I still filed and claimed the credit?

The credit would be disallowed if the Missouri Department of Revenue audits your return. You would owe back the credit amount plus any interest. If you realize you made this mistake, you can file an amended return to remove the credit before the department catches it.

Where do I find the income limit for the current tax year?

The Missouri Department of Revenue publishes the limits on its website each January. You can also find them in the instructions to Form MO-CR. If the website is not accessible, call the Missouri Department of Revenue's taxpayer information line — the number is listed in the Form MO-CR instructions.