How Taxes Work for Individuals (Non Businesses) in the State of Missouri
If you live in Missouri and have ever had to file taxes (or do anything with the Missouri Department of Revenue) you probably dealt with a lot of confusion and frustration.
Don’t worry, you are not alone.
While the MO Dept of Revenue website does include a lot of helpful links and resources, their 11-bracket tax system is just about impossible to comprehend if you are not familiar with taxes.
Personal Income Taxes in Missouri
Like most states, in Missouri, you can simply use the filing status you used for your federal tax return for your state return.
These statuses include:
- Head of household
- Married filing jointly/together
- Married filing separately
- Qualifying widow(er) with dependent child
For residents in the State of Missouri, income taxes range between 1.5% to 5.9%.
You can calculate your income taxes in Missouri using the Department of Revenue’s Income Tax Calculator.
Additionally, you can also use their tax chart to see a breakdown of how you are taxed and how much you will owe.
Paying/Filing Your Taxes in Missouri
Like all states, Missouri allows you to manually file your taxes using forms from their website, however, an easier solution is to file your taxes online through the Department of Revenue’s website.
If you become confused, we always recommend reaching out to a St. Louis Accounting firm to help answer questions and even possibly file your income taxes for you.
Tax Credits and Deductions in Missouri
Similar to the federal deductions, Missouri allows taxpayers to claim deductions that include:
- $12,000 for taxpayers filing as single or married (and filing separately)
- $18,000 for taxpayers filing as the head of household
- $24,000 for married (and filing together) or a widow(er)
Missouri also offers property tax credits to certain senior citizens and all disabled taxpayers.
The credit is for a maximum of $750 for taxpayers renting and up to $1,100 for taxpayers who own a house (or other places of residents).
Sales Tax in Missouri
Missouri has a sales tax of 4.225% for items purchased/sold through a retailer.
Individual cities and counties also have the option to impose sales tax as well.
Click here to find out how much your city, county, or district in Missouri charges in sales tax.
You can file your sales tax return electronically on the Dept. of Revenue’s website.
Property Taxes in Missouri
A property tax is a tax people pay on certain items. More specifically, you pay taxes for large items like cars, boats, motorcycles, etc.
Property Taxes in Missouri Vary depending on where you live.
In St. Louis County, personal property taxes are calculated at a rate of 1/3 the market value of your item.
So, if your car has a market value of $30,000, you will be taxed on the assessed value ($10,000).
On average, most residents pay around 1% in personal property taxes which is lower than the 1.19% average charged by the rest of the States in the US.
However, at just over 1.4%, St. Louis County has a higher property tax than the national average.
You can calculate your property taxes here.
Social Security Taxes in Missouri
Currently, 13 states in the US have taxes on social security benefits and Missouri happens to be one of them.
However, of these 13 states, Missouri has the friendliest exemptions when it comes to income taxes.
Put simply, you can make up to $100,000 per year and still not owe anything in the State of Missouri.
Estate Taxes in Missouri
Yes and no.
The IRS no longer requires estate tax returns to be filed for deaths that occurred before January 1, 2005.
Additional Taxes Missouri Residents Should Know About
- Fiduciary taxes
- Partnership taxes