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Johnsonville, IL
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Missouri State Taxes: What You’ll Pay in 2025

Posted on 03/14/25 by Sharon Waters

Missouri retirees pay state tax on pensions and Social Security for tax year 2024, but they also can take some exemptions. Missourians saw their top state income tax rate dip slightly in 2024, and it declined again as of Jan. 1, 2025. But Missouri’s sales tax is higher compared to other states, and even groceries are taxed.

The big picture:

  • Income tax: 2.00 to 4.8 percent 
    Missouri has a graduated individual income tax, with rates ranging from 2 percent to 4.8 percent. Some municipalities, including St. Louis and Kansas City, also collect local income tax.
  • Property tax: 0.88 percent of a home’s assessed value (average)
    Real estate taxes vary in Missouri, with an average tax rate of 0.88 percent of a home’s assessed value in 2023, according to the Tax Foundation.
  • Sales tax: 8.41 percent (average combined state and local)
    Missouri has a 4.225 percent state sales and use tax, but cities and counties may impose a local sales tax. The average combined state and local sales tax rate is 8.41 percent, according to the Tax Foundation.
BE1CCA38-217D-4C87-B562-911205C0C70C.jpeg
Getty/AARP

How is income taxed in Missouri?

Missouri’s individual income tax rates range from 2 percent to 4.8 percent for tax year 2024. If you live or work in St. Louis or Kansas City, you’ll also pay a 1 percent local income tax.

The state’s eight tax brackets are below. Rates are the same for joint and single filers. Not all of your income is taxed at the same rate. For example, if you’re a single filer and earned $80,000 in taxable income, the first $1,273 is not taxed. The next $1,274 to $2,546 is taxed at 2 percent, the next $2,547 to $3,819 is taxed at 2.5 percent plus an additional $25, and so on.

Income
Tax rate
$0 to $1,273
0
More than $1,273 to $2,546
2 percent
More than $2,546 to $3,819
2.5 percent plus $25
More than $3,819 to $5,092
3 percent plus $57
More than $5,092 to $6,365
3.5 percent plus $95
More than $6,365 to $7,638
4 percent plus $140
More than $7,638 to $8,911
4.5 percent plus $191
More than $8,911
4.95 percent plus $248

Source: Missouri Department of Revenue

Missouri provides a calculator to compute your individual income tax.

Watch the video below to learn how to identify your 2024 federal income tax brackets.

Understanding Your 2024 Income Tax

Are pensions or retirement income taxed in Missouri?

Missouri partially taxes pensions and other retirement income.

Missouri’s state income tax exemption for public pensions is available to everyone, regardless of adjusted gross income. Taxpayers can subtract their public pensions up to the maximum Social Security benefit amount of $46,381 or the amount included in their federal adjusted gross income if lower than $46,381. However, if a taxpayer also takes a Social Security or Social Security disability deduction, then the public pension exemption is reduced by the amount of that deduction.

Those with private pensions (including annuities, IRAs and 401(k)s funded by a private source) who meet income requirements can take an exemption of up to $6,000 per taxpayer. To claim the exemption, your income cannot exceed $25,000 for a single person, $32,000 for a married couple filing jointly, or $16,000 for a married person filing separately.

Find more information about how pensions are taxed on the Missouri Department of Revenue website. Find more info about the 2024 tax year pension changes here.

Military pensions are not taxed. Scroll down for more information about military benefits.

AARP's retirement calculator can help you determine if you are saving enough to retire when — and how — you want.

What about investment income?

Investment income is taxed at the same rate as other income. If the income is included in your adjustable gross income on your federal return, it will be taxable on your state return.

Does Missouri tax Social Security benefits?

Starting in tax year 2024, Social Security benefits are exempt from state tax. However, you may pay federal taxes on a portion of your Social Security benefits, depending on your “provisional income.”In most cases, provisional income is equal to the combined total of half your Social Security benefits, your adjusted gross income (not including any Social Security benefits) and any tax-exempt interest for the year.

Up to 50 percent of your benefits will be taxed if your provisional income is $25,001 to $34,000 or if you file jointly and your provisional income is $32,001 to $44,000. Up to 85 percent of your benefits will be taxed by the federal government if your provisional income is more than $34,000 individually or $44,000 as a couple.

AARP's Social Security calculator can assist you in determining when to claim and how to maximize your Social Security benefits.

How is property taxed in Missouri?

Property tax is a local tax based on the value of your home, which is assessed by the county. In Missouri, your home is assessed at 19 percent of its market value.

The average property tax rate in 2023 was 0.88 percent of the assessed value of your home, according to Tax Foundation data, although rates vary by county.

Your tax bill is calculated using a formula that takes into account your home’s assessed value and your county’s tax rate. County assessors reassess property every two years, in odd-numbered years. Missouri property taxes are paid annually and are due by Dec. 31.

Personal property such as cars, boats and trailers and aircraft is also taxed in Missouri. Most personal property is assessed at 33⅓ percent of its value.

The Missouri State Tax Commission has more information about property taxes, including how to file an appeal. To estimate your taxes, use Missouri’s property tax estimator.

What about sales tax and other taxes?

  • Sales and use tax: Missouri levies a 4.225 percent state sales and use tax on many, but not all, goods and services. Cities, counties and special taxing districts such as fire protection districts may impose an additional local sales and use tax. You can view your sales tax rate here. A similar look-up tool, in the form of a map, is available here.

    Eyeglasses and contact lenses are taxable, but prescription drugs, insulin, dentures, prosthetic devices, durable medical equipment and hearing aids are exempt.
  • Groceries: Missouri is one of just 10 states that tax groceries. Food is taxed at 1.225 percent, but local taxes may also apply. State legislation has been introduced that would exempt groceries from sales tax, but local governments are concerned about losing the revenue.
  • Gas and diesel: The motor fuel tax is 27 cents but will increase to 29.5 cents on July 1. The tax is paid by the supplier but passed on to the consumer at the pump in place of sales tax.
  • Alcohol: Liquor receives an excise tax of $2.00 per gallon; wine at 42 cents per gallon; beer at 6 cents per gallon. Alcohol is also subject to sales tax.
  • Lottery prizes: Missouri taxes lottery winnings. The Missouri Lottery withholds 4 percent Missouri state tax on prizes of $600.01 or more, and 24 percent federal tax for winnings more than $5,000. Winners may owe additional taxes or receive a refund, based on their personal income.

Will I or my heirs have to pay inheritance and estate tax in Missouri?

Missouri does not levy an estate tax, nor does it have an inheritance tax.

Are there any tax breaks for older Missouri residents?

Missouri offers a property tax credit for certain seniors and individuals who are 100 percent disabled. The credit is based on the amount of property tax paid and total household income, with the credit maxing out at $750 for renters and $1,100 for homeowners. The maximum household income to qualify depends on your tax filing status and if you rent or own. The Missouri Department of Revenue has more information.

Military veterans who are former prisoners of war with a 100 percent service-connected disability are exempt from Missouri property tax.

Are military benefits taxed in Missouri?

Missouri does not tax military pensions, and active duty members can deduct military income from their Missouri adjusted gross income.

What is the deadline for filing Missouri taxes in 2025?

The deadline for filing a Missouri state tax return is April 15, 2025. If you receive a six-month extension to file your federal taxes (until Oct. 15, 2025), you’ll automatically be granted an extension to file your Missouri taxes. An extension does not extend the time to pay. Any taxes owed must be paid by the original due date.

For help estimating your annual income taxes, use AARP's Tax Calculator.

Find more information about filing your state taxes on the Missouri Department of Revenue website.

Editor’s note: This guide was first published on March 18, 2024. It has been updated with new information about Missouri state taxes.

Sharon Waters, a former CPA, has written for Wired.com and other publications.

Also of Interest:

This story is provided by AARP Missouri. Visit the AARP Missouri page for more news, events, and programs affecting retirement, health care, and more.

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