Missouri Tax Calculator 2023-2024: Estimate Your Taxes - Forbes Advisor (2024)

What You Need To Know About Missouri State Taxes

The state of Missouri requires you to pay taxes if you are a resident or nonresident who receives income from a Missouri source.

The state income tax rates range up to 5.4%, and the sales tax rate is 4.225%.

Missouri offers tax deductions and credits to reduce your tax liability, including a standard deduction, itemized deductions, charitable contribution credits and a property tax credit for seniors.

Missouri Income Tax Brackets and Rates

Income Tax Deductions for Missouri

Standard Deduction

The state of Missouri offers a standard deduction for taxpayers. The 2021 standard deduction allows taxpayers to reduce their taxable income by $12,550 for single filers, $25,100 for married filing jointly, $18,800 for head of household and $25,100 for qualifying widows/widowers.

Itemized Deductions

You have the option to choose the standard deduction or itemize your deductions on your Missouri state income tax return. However, if you were required to itemize your deductions on your federal tax return, you must choose to itemize. You’re required to itemize your deductions on your federal tax return if you file married filing separately and your spouse decides to do so.

Long-Term Care Insurance Deduction

Taxpayers may be able to deduct the cost of premiums for long-term care insurance. The policy must be for at least 12 months of coverage.

First-Time Home Buyers Deduction

Taxpayers who contributed to a first-time home buyer account may deduct up to $800 of the amount contributed per year or $1,600 for married taxpayers filing jointly. Interest may be included in that deduction.

Achieving a Better Life Experience (ABLE) Contribution Deduction

Contributions made to the Achieving a Better Life Experience (ABLE) program administered by the Missouri Achieving a Better Life Experience Board are tax-exempt. The annual exempt contribution limit is $8,000 for single individuals or $16,000 for married couples filing a joint return. To claim the deduction, you must include proof of your contributions when you file your taxes.

Missouri State Income Tax Credits

Food Pantry, Homeless Shelter, or Soup Kitchen Tax Credit

Taxpayers who contribute money or food to a food pantry, homeless shelter or soup kitchen may claim a nonrefundable tax credit for 50% of the value of the contribution or the amount donated. Donations to food banks and organizations outside the state are ineligible for the credit. The maximum credit you can claim in a year is $2,500 per person, and the claim can’t be larger than your tax liability. If you contribute to more than one food pantry, shelter or soup kitchen, you’ll need to complete the form MO-FPT for each organization.

Special Needs Adoption Tax Credit

Missouri residents who adopt a special needs child who is also a resident of Missouri may take a one-time nonrefundable tax credit of up to $10,000 for adoption expenses per child. As of January 2022, if you adopt a child, you may claim the credit regardless of whether the child is a special needs child. However, the state will prioritize taxpayers who adopt a special needs child. adoptions of any Missouri resident child will be eligible for the tax credit, regardless of special-needs status.

Diaper Bank Tax Credit

Donations of $100 or more to a diaper bank are eligible for a tax credit for 50% of the donation. Donations may include cash, stock, bonds, or real property, and the organization must be a nonprofit located in Missouri. The credit may not exceed your tax liability for the year, and can’t exceed $50,000 per taxable year.

Domestic Violence Shelter or Rape Crisis Center Tax Credit

Donations of $100 or more to a domestic violence shelter or rape crisis center are eligible for a tax credit for 50% of the donation. Donations may include cash, stock, bonds, or real property, and the organization must be a nonprofit located in Missouri. The credit may not exceed your tax liability for the year, and can’t exceed $50,000 per taxable year.

Maternity Home Tax Credit

Donations of $100 or more to a maternity home are eligible for a tax credit for 50% of the donation. Donations may include cash, stock, bonds, or real property, and the organization must be a nonprofit located in Missouri. The credit may not exceed your tax liability for the year, and can’t exceed $50,000 per taxable year.

Health, Hunger, and Hygiene Tax Credit

Donations to organizations that contribute to school-age children’s health and hygiene needs may be eligible for a tax credit for 50% of the donation. Donations may include cash, stock, bonds, or real property, and the organization must be a nonprofit located in Missouri.

Champion for Children Tax Credit

Donations to a qualified court-appointed special advocate, child advocacy center or crisis care center in Missouri may be eligible for a tax credit for 50% of the donation. Your donation must be $100 or more to claim the credit.

Property Tax Credit

Missouri offers a tax credit to some senior citizens and 100% disabled individuals. The maximum value of the credit is $750 for renters and $1,100 for homeowners who occupied their homes. Your credit amount depends on the amount of rent or real estate taxes you paid, and your household income. Generally, the household income limit is $27,200 for single filers who rent and $30,000 for single filers who own their home. For married filing jointly returns, the household income limit is $29,200 for renters and $34,000 for owners.

Do I Have to Pay Income Tax in Missouri?

You’re required to file a Missouri tax return if you receive income from a Missouri source.

There are a few exceptions:

• You’re a Missouri resident, and your state adjusted gross income is less than $1,200
• You’re a nonresident, and your Missouri income was less than $600
• Your state adjusted gross income is lower than the state standard deduction for your filing status.

Residency Status

Full-time and part-time residents of Missouri are subject to state income tax. Partial-year residents are taxed on income earned while living in the state.

If you’re a resident of Missouri who paid taxes to another state, you can get a credit for the tax you paid by using form MO-CR.

Related:Missouri Income Tax Calculator

Sales Tax and Sales Tax Rates

Missouri charges a sales tax of 4.225%.

Property Taxes and Property Tax Rates

Each county and city determine property tax rates.

Property Tax Exemptions

Missouri provides property tax exemptions for certain organizations using their property for educational, literary, scientific, religious, or charitable purposes.

Capital Gains Taxes

Missouri allows taxpayers to report gains and losses from the sale of capital assets. Unlike federal income taxes, which allow taxpayers to have capital gains taxed at lower rates, the state of Missouri taxes capital gains as ordinary income.

Inheritance and Estate Tax and Inheritance and Estate Tax Exemption

Missouri doesn’t have an inheritance or estate tax.