Missouri State Tax
Income taxes in Missouri, when accounting for state and local taxes, total 9%, which is slightly below the national average of 9.8%. Like other states, there are excise taxes of liquor, beer and cigarettes, as well as vehicle taxes. There are also property taxes that must be given consideration. Tax returns are due on April 15.
Missouri state sales tax – 4.225%, (prescription drugs exempt, food taxed at 1.225%). This is in addition to local sales taxes that can be tacked on, which can make the sales tax as high as 6%. Use taxes may be applicable for purchases made out of state for use in Mississippi. Sales tax burden is much lower than the national average
Missouri personal income tax
There are ten tax brackets:
- 1.5 percent on the first $1,000 of taxable income.
- 2 percent on taxable income between $1,001 and $2,000.
- 2.5 percent on taxable income between $2,001 and $3,000.
- 3 percent on taxable income between $3,001 and $4,000.
- 3.5 percent on taxable income between $4,001 and $5,000.
- 4 percent on taxable income of $5,001 and $6,000.
- 4.5 percent on taxable income of $6,001 and $7,000.
- 5 percent on taxable income of $7,001 and $8,000.
- 5.5 percent on taxable income of $8,001 and $9,000.
- 6 percent on taxable income of $9,001 and above.
Most Missouri residents will pay the 6% tax rate. This is a median tax burden compared to the national average.
Missouri excise taxes
Taxes will be assessed on vehicles, alcohol, tobacco, gasoline and are in addition to federal excise taxes.
- $.17 per package of 20 cigarettes
- $2.00/gallon on spirits
- $.42 per gallon on table wine
- $.06 per gallon of beer
- $.173/gallon on gasoline
Missouri inheritance tax
Only federal laws are in effect. Estate laws have not been enforceable on deaths occurring after Jan 1, 2005. There is no Missouri inheritance tax.
Missouri payroll taxes
State Disability Insurance – none
State Unemployment Insurance – 0% to 9.70%, wage base is $13,000. New employer contribution, including mining employers, is 3.51%. Construction employers use 3.619%. Non-profits use 1.3%
State minimum wage is 7.25/hr
Missouri state property tax
Missouri local government is funded through property tax. Tax assessments are made by these local governments and the tax is determined by this value and the tax rate determined by the locality.
Missouri state corporate tax
There is a flat tax of 6.25% on all corporate income. This, like Missouri income taxes, is comparable with average state corporate tax rates.
Schools, churches, cemeteries, and non-profits are all exempt from state and local property taxes.
There are personal exemptions from taxation that total $2,100 for individuals and $4,200 for couples. Dependents are subject to a $1,200 exemption. Those 65 and older or blind receive a $1,000 exemption. You may make deductions for federal taxes paid. This deduction does not exceed $5,000.
All couples with a gross income under $100,000 or individuals with an income under $85,000 may deduct up to 65% of retirements benefits. Eventually pensions and other benefits will be 100% deductible by 2012.
15% of military pension income is exempt from Missouri state tax. All military pensions will be tax free by Jan 1, 2016.