Missouri
Tax Planner Template for Missouri
Plan your federal and Missouri state taxes in Google Sheets. Track income, deductions, and credits throughout the year.
In Depth
Missouri's Declining Rates and Federal Deduction
Missouri has been gradually reducing its top income tax rate through a mechanism tied to revenue growth: when state revenue meets certain triggers, the top rate drops by 0.1 percentage points. The rate has stepped down from 5.3% in 2022 to 4.7% for the 2025 and 2026 tax years, and the currently authorized floor is 4.5%. The top bracket kicks in at a low income threshold, so most working adults effectively pay the top rate on the majority of their income. A 2025 law also made Missouri the first state to exempt capital gains from individual income tax, effective from the 2025 tax year.
Like Alabama and Oregon, Missouri still allows a deduction tied to federal income taxes paid, a feature most states have abandoned - Louisiana and Iowa both repealed theirs in earlier reforms. Missouri's version is doubly limited: the deductible percentage of federal tax falls as Missouri adjusted gross income rises, reaching zero above $125,000, and the result is capped at $5,000 for single filers or $10,000 for combined returns. For moderate-income households it still provides meaningful relief.
Missouri's retirement rules changed significantly with a 2023 law. Social Security benefits are fully exempt from state tax beginning with tax year 2024, with no income test. Public pension income is exempt up to a cap tied to the maximum annual Social Security benefit, with the old income limits repealed, while the smaller private pension exemption kept its income limits. The circuit breaker credit provides property tax relief for eligible seniors and disabled residents, and a 2025 law expands both its maximum amounts and its income ceilings beginning with tax year 2026.
Missouri
Tax Planning in Missouri
Missouri has a graduated income tax with a top rate of 4.7% and allows a partial, income-limited deduction for federal taxes paid. Revenue triggers can step the top rate down further in future years.
Graduated Income Tax
Missouri has a graduated income tax with a top rate of 4.7% as of the 2025 and 2026 tax years, reached at a low income threshold. Revenue triggers under a 2022 law can step the rate down further, to an authorized floor of 4.5%. The first portion of taxable income (around $1,300, indexed annually) is not taxed.
Federal Tax Deduction
Missouri allows a deduction for a percentage of federal income taxes paid. The percentage shrinks as Missouri adjusted gross income rises and reaches zero above $125,000, and the result is capped at $5,000 for single filers and $10,000 for combined returns.
Retirement Income
Since tax year 2024, Social Security benefits are fully exempt from Missouri tax with no income test. Public pension income is exempt up to a cap tied to the maximum annual Social Security benefit. Private pensions have a smaller, income-limited exemption.
Property Tax
Missouri property taxes are moderate. The homestead exemption and circuit breaker credit can provide additional relief for eligible residents.
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Getting Started
Getting Started with Missouri Tax Planning
Enter income and track your federal tax for the state deduction
Add all income sources - wages, self-employment, investments, and retirement distributions. Missouri allows a deduction for a percentage of federal income taxes paid, with the percentage based on Missouri adjusted gross income and a cap of $5,000 (single) or $10,000 (combined). Tracking your federal liability helps you estimate how much of the Missouri deduction applies.
Check the current top rate
Missouri has been gradually reducing its top income tax rate through a revenue-triggered mechanism. The top rate is 4.7% for the 2025 and 2026 tax years [1], stepped down from 5.3% in 2022, and further 0.1-point cuts toward the authorized floor of 4.5% can occur when revenue targets are met. Since the rate can change between years, confirming the current year's rate when setting up the template keeps projections accurate.
Mark Social Security as exempt
Since tax year 2024, Missouri fully exempts Social Security benefits from state tax, with no income test. Earlier rules tied the exemption to adjusted gross income thresholds, but those limits were repealed. Enter Social Security separately from other income so the exempt amount stays visible in your state projection.
Track pension exemptions and their caps
Public pension income from Missouri state and local government retirement systems is exempt up to a cap tied to the maximum annual Social Security benefit, and the cap is reduced by any Social Security exemption claimed. Private pensions carry a smaller, income-limited exemption, while 401(k) distributions and IRA withdrawals are taxed at the regular graduated rates. Categorize each retirement source to see which portions are exempt.
Review your projection with the deduction phase-down in mind
Missouri's federal tax deduction shrinks as income rises: the deductible percentage falls in steps from 35% at lower incomes to zero above $125,000 of Missouri adjusted gross income, and the result is capped. The dashboard helps you see how the deduction affects your state liability. Since tax year 2025, Missouri also exempts capital gains from individual income tax, which is worth noting when categorizing investment income.
See It In Action
What the tax planner looks like
Browse through the template to see how it tracks income, deductions, credits, and estimated quarterly payments.
- Annual tax overview dashboard
- Income tracking by source
- Deductions and credits organizer
- Quarterly payment tracker
Annual tax overview with key figures
Detailed tax breakdown and projections
Track all income sources for tax purposes
Organize and track tax deductions
Plan and track quarterly estimated tax payments
Common Questions
Tax Planning in Missouri - FAQ
Does Missouri allow a deduction for federal taxes paid?
Yes, but it is limited twice over. Missouri residents can deduct a percentage of federal income taxes paid, and the percentage depends on Missouri adjusted gross income: 35% at incomes up to $25,000, stepping down in bands until it reaches 0% above $125,000. The result is further capped at $5,000 for single filers and $10,000 for combined returns. Among the states, only Alabama and Oregon still offer comparable deductions for federal taxes paid, and both work differently.
What is Missouri's current top income tax rate?
The top rate is 4.7% for the 2025 and 2026 tax years, down from 4.95% in 2023 and 4.8% in 2024 [2]. A 2022 law steps the rate down by 0.1 points when state revenue meets certain triggers, with 4.5% as the currently authorized floor. The top bracket applies above roughly $9,200 of taxable income, so most working adults pay the top rate on the majority of their income. Separately, capital gains are exempt from Missouri individual income tax beginning with tax year 2025.
Is Social Security taxed in Missouri?
No. Beginning with tax year 2024, Missouri fully exempts Social Security benefits from state income tax regardless of income. The earlier rules, which taxed benefits for filers with adjusted gross income above $85,000 (single) or $100,000 (joint), were repealed by a 2023 law. No income test remains.
How is public pension income treated in Missouri?
Income from public retirement systems such as MOSERS, the public school teacher retirement systems, and local government plans is exempt up to a cap set at the maximum annual Social Security benefit (about $46,000, adjusted yearly), reduced by any Social Security exemption the taxpayer claims. The old income limits on this exemption were repealed starting with tax year 2024. Private pensions have a separate $6,000 exemption that still carries income limits, and 401(k) and IRA withdrawals are taxed at the regular graduated rates.
What is Missouri's circuit breaker credit?
It is a property tax credit for eligible seniors and disabled residents whose property tax or rent is high relative to their income, claimed on the state income tax return. Beginning with tax year 2026, the credit was expanded for the first time since 2008: the maximum rises to $1,055 for renters and $1,550 for homeowners, the income ceilings increase, and both are indexed to inflation from 2027.
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Official Tax Resources
For current rates, forms, and filing deadlines specific to Missouri:
Sources
Organize your tax planning for Missouri
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Tax rules, rates, and contribution limits change, and official publications can themselves lag behind the law in force. We review these figures on a best-effort basis against sources we consider authoritative, but we cannot guarantee they are current, complete, or that better sources do not exist, and nothing here is tax, legal, or financial advice. For decisions, the relevant government authority is the reference. Last reviewed: August 2026.