Missouri Tax Guide
Explore Missouri's 2025 state tax rates for income, sales, property, retirement, and more. Learn how the state compares nationwide.


Gabriella Cruz-Martínez
Missouri state tax: Overview
Missouri state tax became a little more friendly toward retirees this year.
The state repealed its income tax on Social Security retirement benefits, effective as of last year. The tax cut, signed into law by Gov. Mike Parson, exempts Social Security benefits and public pension payments from income tax.
The measure was estimated to reduce state general revenue by an estimated $309 million each year. Current state law also allows Missouri counties to freeze property tax hikes for homeowners who are at least 62 years old, a great tax break for those entering retirement years.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Missouri is also poised to become the first state to eliminate capital gains taxes.
However, the state's sales taxes are on the high end. Additionally, while most states have made certain food items tax-exempt, Missouri is one of the states that still taxes groceries.
[Data for this state tax guide was gathered from several sources, including the U.S. Census Bureau, the state’s government website, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.]
Missouri income tax
Missouri Income Tax Range
For 2023, the first $1,000 of income was tax-exempt, and the top individual tax rate was 4.95% (on more than $8,968 of taxable income). That rate was reduced to 4.8% for 2024.
(Note: Kansas City and St. Louis also impose an earnings tax.)
For 2025, Missouri is restructuring its income tax brackets, adding a new sixth bracket with a 4.3% rate for filers earning between $16,500 and $33,500 individually or $25,000 to $50,000 jointly.
Note: Missouri could become the first state to eliminate capital gains taxes. The state legislature passed a sweeping bill that would eliminate the individual capital gains tax starting with the 2025 tax year.
Once Gov. Mike Kehoe, who has reportedly expressed strong support for the idea, signs the bill, Missouri will become the first state in the nation to fully exempt profits from the sale of stocks, real estate, cryptocurrency, and other capital assets from state income tax.
MIssouri retirement taxes
- Missouri doesn't tax Railroad Retirement or Military Retirement benefits.
- Social Security retirement benefits are tax-exempt, as of 2024.
- Public pensions are also tax-exempt.
Missouri sales tax
Missouri's statewide sales tax is 4.225%, and localities can add as much as
5.875%, according to the Tax Foundation. That puts the maximum sales tax close to the highest in the nation, at an average 8.410% in 2025.
Missouri is one of 10 states that still tax groceries, and levies a statewide reduced rate of 1.225% (Additional local taxes may apply). There may be some good news, state lawmakers are floating ending grocery taxes in 2025. However, past efforts haven’t been successful due to revenue concerns.
- Diapers and women's hygiene products are taxable.
- Prescription drugs are tax-exempt.
How much are property taxes in Missouri?
In Missouri, the average effective property rate is 0.91%, which is lower than in most other states.
Missouri also has property tax breaks for retirees. The state offers a property tax credit of up to $1,100, available to eligible homeowners age 65 and older ($750 for renters).
Anyone who receives Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), or Veterans Disability may also be eligible, regardless of age. To qualify, homeowners must meet the following criteria.
- You must have owned and lived in your home for the entire year.
- Your income must not exceed the income threshold set for the year.
- You must have paid real estate taxes.
Missouri gas tax
Missouri charges 27 cents per gallon of gasoline and diesel, according to its Department of Transportation. Some 4.05 cents go toward cities, 3.50 cents toward counties, and 19.45 cents go to MoDOT.
Each additional fuel tax results in an estimated $29.0 million for MoDot and $12.6 million for cities and counties.
Missouri taxes on alcohol and tobacco
Cigarettes | $0.17 per pack |
Other tobacco products | 10% of manufacturer's price |
Beer | $0.06 per gallon |
Wine | $0.42 per gallon |
Liquor | $2.00 per gallon |
Missouri estate and inheritance taxes
Missouri does not have an estate or an inheritance tax.
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Katelyn has more than 6 years of experience working in tax and finance. While she specialized in tax content while working at Kiplinger from 2023 to 2024, Katelyn has also written for digital publications on topics including insurance, retirement, and financial planning and had financial advice commissioned by national print publications. She believes knowledge is the key to success and enjoys providing content that educates and informs.
- Gabriella Cruz-MartínezTax Writer
-
Energy-Efficiency Credits — Get ’Em While You Can
Green energy-efficiency credits are on the chopping block. These tax credits can be valuable, but you should upgrade your home sooner rather than later.
-
Retire in Japan: It Ain’t Easy, Unless You’re Very Special
People find relocating to Japan worth the effort, as long as you can jump through those administrative hoops and be open to a flexible view of “retirement.”
-
Trump Tariffs: Will Walmart, Target and Nike Still Raise Prices in 2025?
Tax Law Walmart and other major U.S. retailers were bracing for price hikes due to steep tariffs, but now that could change.
-
New GOP Car Loan Tax Deduction: Which Vehicles and Buyers Qualify
Tax Breaks To fulfill Trump's campaign promise, House GOP lawmakers want to offer a tax deduction for car loan interest. How would it work?
-
What Do Trump's Pardons for Rich Tax Evaders Mean for IRS Enforcement?
Tax Law Recent pardons raise questions about tax fairness and the difference between tax avoidance and evasion.
-
Washington Approves Capital Gains Tax Increase for 2025: Who Pays?
State Tax Here's what high-income filers need to know about Washington's latest tax hike.
-
Are Clean Energy Tax Credits a Thing of the Past?
Tax Credits Now that the House GOP mega bill has passed, some wonder whether energy-efficient incentives like solar, electric vehicle, and home improvement tax credits could go away.
-
Employee Retention Credit Refunds Could be at Risk Under GOP Tax Bill
Tax Credits Millions of small-to-mid-size businesses could be denied the pandemic-era ERC under Trump’s tax agenda.
-
Big GOP Tax Bill Could Change Your Estate Planning for 2025
Tax Law The GOP might extend and increase the higher estate and gift tax exemption and AMT thresholds. What might this mean for your estate plan?
-
New 'No Tax on Tips' Bill Approved: What to Know Now
Income Taxes Will you stop paying taxes on your tip income this year?