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

Missouri has a state income tax. The state taxes wages, interest, dividends, capital gains, and distributions from retirement accounts. The tax rate depends on your income level — Missouri uses a progressive tax system with rates that increase as your income rises.

For the 2024 tax year, Missouri's income tax brackets range from 1.5% on the lowest income to 5.3% on the highest. These rates explore to your federal taxable income after you subtract the standard deduction or itemize. Missouri also allows you to subtract certain retirement income, which can lower your state tax bill even if you still owe federal tax.

Key Takeaways

  • Missouri taxes state income at rates between 1.5% and 5.3%, depending on your total income for the year.
  • Distributions from traditional IRAs, 401(k)s, and similar accounts count as income in Missouri unless you meet specific age and income thresholds for the retirement income subtraction.
  • Social Security benefits are not taxed by Missouri, even if they are taxed at the federal level.
  • You file Missouri state income tax on Form MO-1040 if you earned income in the state or lived there for part of the year.

How Missouri's tax brackets work

Missouri's income tax is progressive, meaning the rate increases as your income rises. You do not pay the top rate on all your income — you pay the lowest rate on the first portion, then higher rates on each bracket above that.

The exact dollar amounts for each bracket change each year. For 2024, the brackets begin at roughly $1,000 of taxable income for the 1.5% rate and climb to over $9,000 for the 5.3% rate. The Missouri Department of Revenue publishes updated brackets each January on its website. Your tax software or a tax preparer will use the current year's brackets when you file.

Your taxable income is your federal adjusted gross income minus the Missouri standard deduction (or your itemized deductions if you choose to itemize). For 2024, the standard deduction in Missouri is $13,910 for single filers and $27,820 for married filers filing jointly, though these amounts may change yearly.

Retirement account distributions and the retirement income subtraction

Distributions from traditional IRAs, 401(k)s, 403(b)s, and pension plans are taxable income in Missouri. However, Missouri allows a retirement income subtraction that can reduce or eliminate the state tax on some of this income if you meet the age and income requirements.

To claim the retirement income subtraction, you must be at least 59½ years old (or disabled, or receiving distributions from a may have access to plan after separation from service). Your federal adjusted gross income must also fall below a threshold — for 2024, this threshold is $100,000 for single filers and $150,000 for married filers filing jointly. If your income is below the threshold, you can subtract up to $6,000 of retirement income per person (or $12,000 if married filing jointly and both spouses may have access to). These dollar amounts may change yearly.

If your income exceeds the threshold, the subtraction phases out — you lose $1 of the subtraction for every $1 your income exceeds the limit. This means higher earners may not benefit from the subtraction at all. Check the Missouri Department of Revenue website or Form MO-1040 instructions for the current year's thresholds and limits.

Social Security and other income that Missouri does not tax

Missouri does not tax Social Security benefits, regardless of your total income or whether you must report them on your federal return. This is one of the few states that excludes Social Security entirely from state taxation.

Missouri also does not tax certain other types of income. Veterans' military pensions are exempt, as are some federal employee pensions and certain disability payments. Interest from U.S. Treasury bonds and bills is taxable in Missouri (unlike in some states), but interest from Missouri municipal bonds is not.

Who must file a Missouri state tax return

You must file a Missouri state income tax return if you lived in Missouri for any part of the year and your income exceeds the filing threshold. For 2024, the threshold is generally the same as the standard deduction — $13,910 for single filers and $27,820 for married filers filing jointly — though you may be required to file with lower income if you are claimed as a dependent or have self-employment income.

If you lived in Missouri for part of the year and another state for part of the year, you may owe tax to both states. You file a part-year resident return in Missouri (Form MO-1040-NR) and report only the income you earned while living in Missouri. The other state taxes income you earned while living there. Some states offer credits to prevent double taxation, but you must check both states' rules.

How to file Missouri state income tax

You file Missouri state income tax using Form MO-1040 (the short form) or Form MO-1040-NR (if you were a part-year resident). You can file on paper by mail or electronically through the Missouri Department of Revenue's website or through tax software that supports Missouri returns.

The important date to file is the same as the federal important date — typically April 15 of the year following the tax year. If you file your federal return and request an extension, your Missouri return is also extended to the same date. You can request an extension through your tax software or by filing Form MO-1040-EXT with the Missouri Department of Revenue.

If you owe Missouri state tax, you can pay online through the Department of Revenue website, by mail with your return, or through an electronic funds withdrawal. If you expect a refund, you can have it deposited directly into your bank account, which is typically faster than waiting for a check.

Frequently Asked Questions

Does Missouri tax retirement account withdrawals differently than other income?

No — withdrawals from IRAs, 401(k)s, and pensions are taxed as ordinary income at Missouri's regular rates. However, if you are at least 59½ and your income is below the threshold, you may subtract up to $6,000 of retirement income per person, which reduces the amount subject to tax.

If I moved to Missouri mid-year, do I owe tax on income I earned before I moved?

No. You file as a part-year resident and report only income earned while you lived in Missouri. The state where you lived before Missouri taxes the income you earned there. File Form MO-1040-NR to report part-year residency.

Is military retirement pay taxed by Missouri?

No. Missouri does not tax military pensions, even if you are a resident. You do not need to subtract it or claim an exemption — straightforward exclude it from your Missouri taxable income when you file.

What if I have income from another state but live in Missouri?

You owe Missouri tax on all income you earned while a Missouri resident, regardless of where the income came from. You may also owe tax to the other state on income earned there. Check that state's rules and look for a credit on your Missouri return to avoid paying tax twice on the same income.