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Official Tax Guide

Missouri Taxes 2025: Income, Sales, and Property Tax Guide

Complete guide to Missouri state taxes. Income tax (Top 4.8%), sales tax, and what you need to know before moving.

Updated January 15, 2026
5 min read

Missouri State Tax Guide 2025

Welcome to Missouri! As you settle into the "Show-Me State," understanding the tax landscape is crucial for your financial planning. Missouri offers a competitive tax environment compared to many parts of the country, particularly regarding income and property taxes. This guide provides a clear overview of what to expect for the 2025 tax year.

1. Income Tax

Missouri’s individual income tax system underwent significant changes in recent years, moving toward a flat tax structure.

  • Tax Rate: For the 2025 tax year, Missouri has a top income tax rate of 4.8%.
  • Structure: The tax is technically flat. While the state previously used a progressive bracket system, legislation has consolidated this into a single rate for most taxpayers. This simplifies filing and makes Missouri’s income tax rate significantly lower than the national average.
  • Filing: Residents, part-year residents, and non-residents with Missouri-source income must file a state return if their income exceeds specific thresholds, which are adjusted annually for inflation.

2. Sales Tax

Sales tax in Missouri is a combination of the state rate and local rates imposed by counties and municipalities.

  • State Rate: The base state sales tax rate is 4.225%.
  • Local Rates: This is only the starting point. Local jurisdictions (cities, counties, and special districts) can levy additional taxes. When combined, total sales tax rates typically range from 5% to over 10% depending on the location.
    • Example: St. Louis and Kansas City have higher combined rates due to additional local levies.
  • Groceries: Missouri taxes groceries at a reduced state rate of 1.75% (plus local taxes). However, local taxing jurisdictions may opt to tax groceries at the full rate.

3. Property Tax

Missouri is known for having some of the most affordable property taxes in the nation.

  • Overview: While specific rates vary by county and school district, Missouri’s effective property tax rate generally falls well below the national average.
  • Assessment: Property taxes are assessed on 19% of the market value (for real estate). The tax burden is largely driven by local levies, particularly for schools and public safety.
  • Homestead Exemption: Seniors (age 65+) and disabled individuals may qualify for a "homestead" exemption that freezes the assessed value of their primary residence for tax purposes, offering significant protection against rising property values.

4. Other Taxes

Beyond income and sales, there are a few other taxes to be aware of:

  • Gas Tax: Missouri has a relatively low motor fuel tax compared to national averages. As of 2025, the state fuel tax is 17 cents per gallon for gasoline and diesel (though federal taxes apply separately).
  • "Sin" Taxes: Taxes on alcohol and tobacco products are levied at specific rates per unit (e.g., per gallon of alcohol or per pack of cigarettes) rather than just a percentage of sales.
  • Inheritance Tax: Missouri does not have an inheritance tax. It was fully repealed in 1975.
  • Estate Tax: Missouri also does not have a separate state estate tax (though federal estate tax may apply to large estates).

5. Retiree Taxes

Missouri is considered a tax-friendly state for retirees.

  • Social Security: Social Security benefits are exempt from state income tax for most retirees.
  • Pension Income: Up to a certain limit (adjusted annually), pension income and retirement account distributions (like 401(k)s and IRAs) are exempt from state tax. For 2025, this exemption generally applies to the first $50,000 of retirement income for married couples filing jointly ($25,000 for single filers).
  • Property Tax Relief: As mentioned, seniors can take advantage of homestead exemptions to lower their property tax burden.

6. Comparison to Neighbors

How does Missouri stack up against its surrounding states?

  • Illinois: Illinois has a flat income tax rate of 4.95% (slightly higher than MO) and significantly higher property taxes, though sales taxes are complex with local variations.
  • Kansas: Kansas has a progressive income tax with a top rate of 5.7% (higher than MO). However, Kansas does not tax Social Security benefits.
  • Arkansas: Arkansas has a graduated income tax with a top rate of 5.5% (higher than MO) and generally higher sales tax rates.
  • Iowa: Iowa is in the process of lowering its income tax to a flat 3.9% by 2026, which will eventually beat Missouri's rate, though MO remains competitive for 2025.

Disclaimer: Tax laws change frequently. The information provided in this guide is for general informational purposes only and is not a substitute for professional tax advice. Consult a CPA or tax professional regarding your specific financial situation.