Missouri State Taxes
Quick Tax Facts
Income Tax: 0% – 4.70%
State Sales Tax: 4.225%
Median Property Tax: $1,812
Overview
Missouri (the Show Me State) offers its residents low-cost housing and a fairly low cost of living. If you’re into outdoor activities and sports, there’s also no shortage of parks or professional sports. In terms of taxes, Missouri is a mixed bag. Although it recently lowered its top income tax bracket to 4.70%, it doesn’t take much income to hit that mark. Sales taxes are on par with the national average. Property taxes, however, are just below average.
Missouri Income Tax
In 2022, Missouri Governor Mike Parson signed into law legislation that reduced the state’s top income tax rate from 5.2% to 4.95% for the 2023 tax year. Additionally, the bottom income tax bracket was eliminated, allowing residents to earn their first $1,207 tax-free. The legislation also provided for an additional .15% rate reduction if the state’s net general revenues increase by more than $175 million, decreasing the top rate to 4.70% for 2025. Should future revenues also increase by $200 million or more, an additional .1% will be shaved off the top income tax rate until it reaches 4.5%.
| 2025 Missouri Individual Income Tax Rates |
|---|
| If your Missouri taxable income is: | The tax rate is: |
|---|---|
| $0 to $1,313 | $0 |
| Over $1,313 but not over $2,626 | 2% of excess over $1,313 |
| Over $2,626 but not over $3,939 | $26 plus 2.5% of excess over $2,626 |
| Over $3,939 but not over $5,252 | $59 plus 3% of excess over $3,939 |
| Over $5,252 but not over $6,565 | $98 plus 3.5% of excess over $5,252 |
| Over $6,565 but not over $7,878 | $144 plus 4% of excess over $6,565 |
| Over $7,878 but not over $9,191 | $197 plus 4.5% of excess over $7,878 |
| Over $9,191 | $256 plus 4.7% of excess over $9,191 |
Who Must File?
Missouri residents who are not required to file a federal income tax return are exempt from filing a state return (MO-1040), as well. Other instances when a taxpayer may not be required to file a state return, even if they have to file a federal one, include:
- Those earning less than $1,200 in Missouri adjusted gross income (AGI);
- Non-residents with less than $600 in Missouri income; or
- Residents with AGI less than the amount of the standard deduction (see table below) for their filing status.
| Filing Status | Gross Income |
|---|---|
| Single | $15,750 |
| Single (over 65) | $17,750 |
| Married Filing Jointly | $31,500 |
| Married Filing Jointly (one over 65) | $33,100 |
| Married Filing Jointly (both over 65) | $34,700 |
| Head of Household | $23,625 |
| Head of Household (over 65) | $25,625 |
| Married Filing Separate | $15,750 |
Missouri Sales Tax
Missouri has a state sales tax rate of 4.225%. Local governments (cities and counties) levy an additional sales tax of up to 5.763%. The average combined rate (county) is 8.3%, which is slightly above average.
Missouri Property Taxes
Missouri’s property tax rates are determined by two factors: (1) the assessed value of the taxpayer’s property, and (2) the total tax rates set by the local governing bodies where the property is located. Overall, Missouri falls into the middle of the pack in terms of how much residents pay annually when compared to other states.
The median property tax bill in Missouri is $1,812. St. Charles County has the highest average annual bill at $3,196. The lowest average property tax bill in the state is $506 in Reynolds County.
| Highest | $3196 |
|---|---|
| Median | $1812 |
| Lowest | $506 |
Yearly Cost Per Resident
Missouri Tax Holidays
Missouri hosts two annual sales tax holidays.
- Show Me Green Sales Tax Holiday– held April 19 through 25 annually since 2009. Exempts up to $1,500 in sales tax per qualifying Energy Star certified appliance.
- Back-to-School Sales Tax Holiday – this tax holiday begins the first Friday in August and continues through the following Sunday. Eligible items include clothing ($100 or less per item), school supplies ($50 per purchase), computer software ($350 or less), personal computers ($not to exceed $1500), and graphing calculators ($150 or less).
Missouri Tax Relief
Falling behind on your Missouri income taxes can create bigger financial challenges over time, particularly as penalties and interest add to your outstanding balance. The Missouri Department of Revenue (DOR) may also take collection action when taxes remain unpaid. Whether your tax debt resulted from missed filings, financial hardship, or unresolved business tax obligations, addressing the problem sooner may help prevent more serious collection issues.
If you can’t afford to pay your Missouri tax bill in full, there may be options available for resolving what you owe. Depending on your circumstances and eligibility, you may be able to set up a payment plan, pursue an Offer in Compromise, or explore other available tax relief options. Taking action before the collection process advances may also help you avoid or address enforcement measures such as tax liens, wage garnishments, and bank levies.
Learning how Missouri handles unpaid tax debt and understanding the resolution options available can help you make a more informed decision about your next steps. By addressing your balance and finding an appropriate solution, you can work toward resolving your Missouri tax issues and getting your account back on track.
Common Missouri State Tax Problems
Back Taxes
If you owe unpaid Missouri taxes, addressing your balance early may help you avoid additional penalties and collection actions.
Unfiled Tax Returns
Filing past-due Missouri tax returns is often the first step toward resolving your state tax issues.
Tax Notices
Notices from the MO Department of Revenue shouldn’t be ignored, as they often require prompt action to prevent further collections.
Liens & Levies
Unresolved tax debt may lead to liens against your property or levies on your assets as the state works to collect what is owed.
Garnishment
Missouri may garnish your wages to collect unpaid taxes, reducing the amount of each paycheck you receive.
Tax Penalties
Unpaid taxes can continue to accrue penalties and interest until your balance is resolved.
How Missouri Collects Tax Debt
If you owe Missouri income taxes, the state follows a specific sequence of letters and notices, giving you time to pay or make payment arrangements. It starts with the Notice of Balance Due, also known as a Notice of Deficiency.
If the Balance Due notice is ignored, the state will issue an Assessment of Unpaid Tax. This gives you 60 days from the mailing date to pay or file a protest before the assessment becomes legally final. Once it is final, the state will issue a Demand for Payment, which serves as a final warning before collections begin.
Missouri collection actions may include:
- Wage garnishment
- Tax liens
- Bank levies
- Asset seizure
- Tax refund offset
- Referral to private collection agency
Notice of Balance Due sent to taxpayer
Demand for Payment issued
Referral to Collections
Missouri State Tax Relief Options
Missouri offers a few relief options, including:
- Installment Agreements– If you can’t pay your tax bill on time, you may be eligible to pay over several months through a payment plan.
- Offer in Compromise – Taxpayers facing economic hardship and who are unable to pay their bill in full may be able to settle their balance for less than they owe through an Offer in Compromise.
- Voluntary Disclosure Program – Taxpayers who have failed to file returns and pay taxes may elect to come forward through the Voluntary Disclosure Program. Although interest and taxes must be paid, penalties will be waived if approved.
If you’re experiencing financial hardship and can’t pay your Missouri income tax bill, contact the Department of Revenue as soon as possible to avoid collection actions.
When to Seek Tax Relief Help
If you’re experiencing any of the following, it may be time to explore your tax relief options:
You’re Receiving Collection Notices
Ignoring Missouri tax notices can lead to more serious collection actions, so it’s often best to address the issue early.
You Can’t Afford to Pay Your Taxes
If paying your Missouri state tax bill in full isn’t realistic, there may be payment or resolution options available.
Collection Actions Have Started
If you’re facing wage garnishments, bank levies, or tax liens, professional guidance may help you understand your options.
The sooner you address your tax debt, the more options you may have available to resolve your balance and minimize additional collection actions.
Missouri Tax Relief FAQs
Missouri Tax Resources
If you need assistance preparing your Missouri state taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.
You can also visit the Missouri Department of Revenue website for additional resources.
- File and Pay Taxes
- Individual Income Tax Forms
- Tax Relief Resources
- General Tax Help: 888-929-0513
