Missouri State Taxes: A Simple Guide

🎖️Missouri state income tax

Missouri taxes personal income using its own rules and brackets, separate from federal law. In general:

• •Residents with income above certain thresholds must file a Missouri income tax return.
• •Nonresidents may need to file if they earn Missouri-source income.
• •Missouri's definitions of taxable income, deductions, and credits differ from federal rules.

Most Missouri residents file a federal Form 1040 and a Missouri return if they meet the state's filing requirements.

🛒Sales and use tax

Missouri has a state sales tax, and local governments (cities, counties, and special districts) can add their own sales taxes on top of the state rate. Total rates vary by location.

• •Many retail sales of goods are taxable.
• •Some items (such as certain groceries or medicines) may have different tax treatment.
• •If you buy taxable items from out of state or online without tax, you may owe use tax to Missouri.

Missouri businesses selling taxable goods or services must collect and remit state and local sales and use taxes as required.

🏡Property taxes

Property taxes in Missouri are imposed and collected by counties, cities, school districts, and other local entities based on the assessed value of homes, land, and other real property.

• •Homeowners receive property tax bills from their county.
• •Property taxes help fund schools, roads, and local services.
• •Some taxpayers may qualify for credits or special relief programs, including those targeted at seniors or disabled homeowners.

🔗Putting Missouri taxes together

A typical Missouri resident may face:

• •Federal income tax (Form 1040)
• •Missouri state income tax
• •State and local sales and use taxes
• •Local property taxes if they own a home

Once you understand basic concepts like taxable income and how to file your taxes, Missouri's rules are easier to work with.