STATE RANKING #26

Quick facts: 

-In Missouri, the cities of Kansas City and St. Louis have additional local city income tax.

-Missouri is one of the few states with no annual LLC fee.

5.40%

State Income Tax

State
Income
Tax

6.25%

Cost of Setting Up A Business

state
business
tax

AVERAGE

Property
Taxes

8.18%

Sales
Tax (average)

State Income Taxes in Missouri

The state of Missouri has an individual income tax, and like most states, it has multiple tax brackets (9) which range from 1.50% to 5.40%. The highest bracket starts at income over $8,424. 

Local income tax – The other thing to be aware of is if you are a resident of either Kansas City or St. Louis, there is an additional local city income tax of 1.00%.

State Business Taxes in Missouri

The state of Missouri has a flat Corporate income tax rate of 6.25% on all income regarding C Corporations. For other businesses that flow-thru entities, such as S Corporations, Partnerships, LLCs, etc., they are taxed at the individual income tax rate which ranges from 1.50% to 5.40% of your Missouri income.

Sales Taxes in Missouri

Like most states, Missouri has both a local and state sales tax rate. Their state sales tax rate is 4.23% and their local sales tax rate is 3.96% (which bring the total average sales tax rate to 8.19%).

Property Taxes in Missouri

The average property tax rate for residential property in the state of Missouri is 1.01%. Which puts it slightly below the national average of 1.05%.

Unemployment taxes in Missouri

Unemployment taxes usually consist of three factors. They are the wage base, range of rates, number of schedules. Below is an outline of the three:

  • Wage Base – Missouri has a wage base of $12,500 for 2020
  • UI Rates – range from 0.00% to 9.75%
  • Schedules – Missouri has multiple rate schedules regarding UI

Missouri Business Entities - LLCs

Missouri is one of the least expensive states in the country to open an LLC. Here are some important facts:

  • Missouri has no annual LLC fee, yay!
  • When you register with the state, you pay a one time fee of $50
  • Secretary of State of Missouri website – click here
  • If you would like help setting up your LLC, we recommend using IncFile.com. They are simple and easy to use.

State #25

State #27