State Taxes at a Glance – Missouri
|Type of Tax||2023|
|Individual Rates||2.00% to 4.95%|
|Corporate / Business Tax Rates||4.00% (flat tax)|
|Gross Receipts Tax||None|
|Sales Tax||8.33% (average)|
|Property Taxes||0.99% as a percentage of primary home|
|Estate or Inheritance Tax||None|
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 2023 there are nine tax brackets that range from 2% to 4.95%.
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 4.225% and their local sales tax rate is 4.11% (which bring the total average sales tax rate to 8.33%).
Property Taxes in Missouri – the average property tax rate for residential property in the state of Missouri is 0.99%. Which puts it slightly below the national average of 1.08%.
Missouri Homestead Exemption – If you live in your property, you are allowed a $15,000 exemption if you declare a homestead in Missouri.
Missouri DMV Taxes
Part of your DMV fees are a personal property tax which is deductible on your tax return. For more information, here is a link to the Missouri DMV website.
If you maintain a permanent place of abode and spend more than 183 in Missouri, it is considered your domicile.
Missouri Tax on Social Security Benefits
Missouri is one of the few states that partially taxes social security benefits. However, there are exemptions under certain cases. You are exempt from tax if you’re:
- Married filing jointly and you make less than $100,000
- Single and you make less than $85,000
All others must pay partially on social security benefits.
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 $10,500
- 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 cost of $155 for articles of organization and filing fees.
- Secretary of State of Missouri website – click here
Missouri Tax Phone Numbers
Important phone numbers for the Mississippi Department of Taxation:
- Website: www.dor.mo.gov
- Phone# for Individuals – (573) 751-3505
- Phone# for Businesses – (573) 751-4541