Missouri is favorable taxwise. According to TaxFoundation.org they rank #12 in the United States. For your convenience, we’ve provided you the most common information regarding Missouri’s various taxes.
Missouri State Income Tax Brackets
Missouri’s State Income Tax Rates are calculated on a marginal scale. That means that it has different tax brackets. In 2021 there are nine tax brackets that range from 1.5% to 5.4%. They are:
- 1.5% anything greater than $108
- 2.0% anything greater than $1,088
- 2.5% anything greater than $2,176
- 3.0% anything greater than $3,264
- 3.5% anything greater than $4,352
- 4.0% anything greater than $5,440
- 4.5% anything greater than $6,528
- 5.0% anything greater than $7,616
- 5.4% anything greater than $8,704
Missouri’s state tax brackets are indexed for inflation, which means every year they go up.
Missouri Local Income Tax
Missouri 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 4.00% 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 and Property 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 4.03% (which bring the total average sales tax rate to 8.25%).
Property Taxes in Missouri – the average property tax rate for residential property in the state of Missouri is 0.96%. Which puts it slightly below the national average of 1.03%.
Payroll 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