What Changes in Your Paycheck in Missouri
Your paycheck in Missouri shows a Missouri state income tax line item that grows progressively through many small brackets, starting at 0% for the first $1. However, because the brackets are compressed, most middle and high earners quickly reach the top 4% rate on almost all income For a $1 salary, you might see ~ $1 annually (~ $1 per biweekly paycheck) for state tax, reflecting that most income is taxed at 4%. Missouri paychecks only show state and federal tax deductions—no local income tax line items. The many brackets create complexity, but most earners effectively pay close to 4% on most income. However, Missouri's very high sales tax rates (up to 10.85% in some areas) mean you'll pay significantly at the point of sale, which isn't reflected on your paycheck but impacts your total tax burden.
Example State Tax in Missouri
What you'll pay in Missouri state income tax at different salary levels (single filer, no deductions):
| Gross Salary | State Tax (Year) | Effective Rate |
|---|---|---|
| $50,000 | $1,857 | 3.7% |
| $75,000 | $2,857 | 3.8% |
| $100,000 | $3,857 | 3.9% |
| $150,000 | $5,857 | 3.9% |
Use the calculator above to see your exact take-home pay with your filing status and deductions.
Is Missouri Better for You?
Missouri works well for:
Missouri works best for high earners who benefit from the relatively low top income tax rate (4%) and have modest spending. A high earner in Missouri pays 4% on most income, while high earners in other states might pay 5%-10%+ in income tax. Retirees also benefit from exemptions on Social Security and most retirement income, making Missouri attractive for those relying on retirement savings The zero-percent bracket for the first $1 provides minimal benefit. Savers and high earners with modest spending will find Missouri's structure favorable.
Missouri may not be ideal if:
Missouri is challenging for big spenders and lower-income workers due to the very high sales tax rates (up to 10.85% in some areas, among the highest in the nation). Someone earning $1 who spends $1 annually on taxable goods might pay $1 in income tax (4% effective) plus $1-$1 in sales tax (10.85%), totaling $1 (12.7% of income). The high sales tax creates a regressive burden, especially for lower earners who spend a larger percentage of income on taxable goods If you're a big spender or lower-income worker, states with lower sales taxes may be more favorable.
Key Facts That Affect Your Take-Home Pay
- Missouri uses a progressive income tax system with nine brackets, starting at 0% for the first $1 of income (for all filing statuses) and escalating gradually through small increments to a top rate of 4% for income above $1, making Missouri's bracket structure relatively complex with many brackets but a low top rate compared to other progressive states.
- Missouri's progressive brackets are extremely compressed with many small incremental brackets (0%, 2%, 2.25%, 2.5%, 2.75%, 3%, 3.25%, 3.5%, 4%), meaning taxpayers move through many brackets quickly, but the top rate is relatively low (4%) compared to other progressive states. For a $1 earner, most income is taxed at the top 4% rate, making the effective rate very close to 4%.
- Missouri does not impose income taxes beyond the state level, so your withholding doesn't change based on work location. All Missouri residents have the same income tax structure—only the state progressive brackets apply.
- Missouri does not tax Social Security or retirement income (pensions, 401(k) withdrawals, IRA distributions) for residents, making the state attractive for retirees despite the progressive income tax structure. The zero-percent bracket for the first $1 also benefits retirees with lower fixed incomes, though the benefit is minimal due to the small amount.
Common Mistakes People Make
Misconception: 'Progressive tax with nine brackets means I'll pay high rates in Missouri.' Reality: Missouri's progressive system starts at 0% for the first $1 of income, and the top rate is only 4%—lower than most flat-tax states like Illinois (4.95%) or Massachusetts (5.0%). The many brackets (nine) create complexity, but the rates are low (0%-4%). A $1 earner pays an effective rate very close to 4% (~ $1 annually), while the same earner in a flat-tax state like Illinois would pay $1 (4.95% flat). Missouri's top rate is actually competitive with or lower than many states.
Misconception: 'The nine brackets mean my tax is complex and expensive.' Reality: While Missouri has nine brackets (more than most states), the rates are relatively low (0%-4%) and the brackets are compressed, meaning most taxpayers quickly reach the top 4% rate. The many brackets create complexity on paper, but most earners effectively pay close to 4% on most income. The low top rate (4%) is actually competitive with or lower than many flat-tax and progressive states.
Misconception: 'Missouri has low taxes because of the low 4% top rate.' Reality: While Missouri's top income tax rate is relatively low (4%), the state compensates with very high sales taxes (up to 10.85% in some areas, among the highest combined rates in the nation). A big spender in Missouri might pay more in sales tax than they'd pay in income tax in some other states. Lower-income residents who spend a large percentage of income on taxable goods face a particularly regressive tax burden. Factor in both income tax and sales tax when evaluating Missouri's tax burden.
One Thing to Know
Missouri has nine brackets (more than most states), which creates complexity, but the top rate is only 4%—lower than many flat-tax states. The real surprise is the sales tax rates, which can reach 10.85% in some areas, completely offsetting the low income tax for big spenders.
Important Notes
These calculations are estimates based on current tax law. Your actual take-home pay varies based on:
- Pre-tax deductions (401(k), health insurance, HSA, etc.)
- Your W-4 withholding elections
- Additional income or deductions at tax time
- Individual circumstances and tax situations
Tax rates are subject to change. Federal and state tax laws may be updated annually. This is not tax advice. For personalized help, consult a tax professional familiar with Missouri tax laws.