What is the income tax rate in the State of Missouri?

Although federal taxes are the responsibility of all taxpayers in the country, the taxes established by the States vary depending on the territory. To get an idea, certain States have a fixed tax rate, some have a marginal rate, and others have no State taxes. If we talk about Missouri, they have an income tax that is mandatory for residents and non-residents.

The State tax in Missouri is levied on the annual income of taxpayers. This State Income Tax is a percentage the citizen pays the State for living and generating money within it. In this sense, the territory has its own ratios regarding payments, deductions and more; here, we will delve into the annual tax and the Missouri income tax rate.

What is the current income tax rate in the State of Missouri?

The State of Missouri has a graduated personal income tax. Each State’s tax code is composed of multifaceted elements, and Missouri’s is no exception. For example, there are jurisdictions within the territory governed by local, rather than State, taxes.

Missouri income taxes range from 1.50% to 5.40%. Some of the rates and distinct aspects of the tax are:

1. Corporate income tax rate of 4.0%
2. Average local income tax rate: 4.06%
3. State sales tax rate of 4.225%
4. Maximum local sales tax rate of 5.763%
5. Combined local and state average combined sales tax rate of 8.29%

Missouri Income Tax Rates and Ranges

Missouri has a progressive tax structure; the more you earn per year, the more taxes you must pay. As previously explained, the percentage of taxes paid to the state ranges from 1.50% to 5.40%. These are the data you should take into account:

• If your taxable income exceeds $0 but not more than $108, the tax to be paid is 0%
• If your taxable income exceeds $109 but not more than $1,088, the tax to be paid is 1.5% of the taxable income
• If your taxable income exceeds $1,088 but not more than $2,176, the tax payable is $16 plus 2.0% of the excess over $2,176
• If your taxable income exceeds $2,176 but not more than $3,264, the tax payable is $38 plus 2.5% of the excess over $3,264
• If your taxable income exceeds $3,264 but not more than $4,352, the tax due is $65 plus 3.0% of the excess over $3,264
• If your taxable income exceeds $4,352 but not more than $5,440, the tax payable is $98 plus 3.5% of the excess over $4,352
• If your taxable income exceeds $5,440 but not more than $6,528, the tax due is $136 plus 4.0% of the excess over $5,440
• If your taxable income exceeds $6,528 but not more than $7,616, the tax due is $180 plus 4.5% of the excess over $6,528
• If your taxable income exceeds $7,616 but not more than $8,704, the tax due is $229 plus 5.0% of the excess over $7,616
• If your taxable income exceeds $8,704 or more, the tax due is $283 plus 5.4% of the excess over $8,704

Deductions you can get when paying income tax

These are the following deductions that are available to you in the state of Missouri:

Standard Deduction

The state offers an average reduction of your tax payment to all taxpayers. For this year, the average will apply for those with a taxable income of:

• $12,550 for single filers
• $25,000 for married filing joint taxpayers 
• 18,800 for heads of household
• $25,100 for qualifying widow(er)s

Item Deduction

The taxpayer can choose between applying for a standard deduction or itemizing their reductions on a Missouri income tax return. If the taxpayer also itemized his deductions on the Federal Income Tax Return, he may also select this option.

You can itemize your deductions on the Federal Income Tax Return if you file a separate marriage filing and your former spouse agrees.

Long-term care insurance deduction

Citizens required to pay income tax may be able to reduce their credit with the costs of long-term care insurance premiums. The taxpayer must have a policy with at least 12 months of coverage.

First-Time Homebuyer Deduction

Those who paid into an account to purchase a home for the first time can reduce up to $800 of the amount contributed per year. They can also mitigate $1,600 for married taxpayers filing jointly, even including some interest in the payment reduction.

Achieving a Better Life Experience Contributions Deduction

All contributions to the Achieving a Better Life Experience (ABLE) program, administered by the Achieving a Better Life Experience Board in Missouri, are tax-exempt. To participate in this benefit, taxpayers had to make this annual contribution:

1. $8,000 for singles
2. 16,000 for married filing jointly

To claim this deduction, taxpayers must provide proof of payments when filing their income tax returns.