If you live in Missouri and you are over 62 you can deduct 65% of your Social Security payment from your state income tax. To get this deduction you will have to make less than $85,000 a year if you are single or married filing separately or less than $100,000 a year if you and your spouse file married filing jointly.
You will still receive a partial exemption even if your income exceeds these amounts. The exemption is reduced by $1 for every dollar of income that exceeds the amount. If you made $85,000 a year and you were single your deduction would be $84,999.
Pension Exemptions in Missouri
If you live in Missouri and you get a government pension you can deduct up to $6,000 or 65% of your pension money from your state income taxes. The maximum amount of public pension income you can deduct in Missouri is $33,703. This amount should increase because Missouri is phasing in a new tax rate on pensions. There are income limitations on this exemption: single filers who make over $85,000 a year and couples filing jointly who make over $100,000 a year cannot qualify for this exemption.
You can also deduct up to $6,000 of private pension income from your state income tax in Missouri. There are income limitations on this deduction. A single person who makes more than $25,000 a year cannot claim this deduction. Neither can a married couple filing jointly that makes more than $32,000 a year or a person filing married filing separately who makes more than $16,000 a year. If you receive a military pension and you live in Missouri you can deduct up to 15% of it from your income taxes.
Missouri Income Tax Rates
The income tax in Missouri is based on the amount of taxable income you declare. The lowest rate is 1.5% which applies to taxable income under $2,000. The rate increases until it hits 6% at $9,000 of taxable income. All taxable income in Missouri that exceeds $9,000 is taxed at a rate of 6.0%.
Missouri uses the adjusted gross income from your federal tax return to determine your income tax rate. Any taxable income listed on your federal return is probably taxable in Missouri. The personal tax exemption in Missouri is $4,200 if you are filing married filing jointly, $3,500 if you are filing head of house hold, and $2,100 if you are filing single. There is an additional $1,000 tax exemption for persons over 65.
Missouri Sales Tax
The state sales tax in Missouri is 4.9% on most retail sales, in addition to this, local governments can charge another 3% in sales tax, so the total sales tax rate can be as high as 7.9% in some areas. Missouri charges a lower sales tax rate on food: 1.225%. This rate only applies to unprepared food bought from grocery stores so food purchased at restaurants and supermarket delis is taxed at the full rate. For example, the 1.225% sales tax would apply to a jug of milk while the 4.9% and local sales tax would apply to a sandwich from the deli.
Property Tax in Missouri
Property taxes in Missouri are assessed and collected by the county. That means you will have to contact your county assessor to see what your property tax will be.
Persons over 65 in Missouri can qualify for a property tax credit of up to $750 for renters or up to $1,100 for homeowners. There are income limits for this credit. The limits are $27,500 for single renters and $30,000 for single homeowners and $30,000 a year for married couples that rent and $34,000 a year for married homeowners.
|Cost of Living Rank:||#8|
|Income Tax:||1.5% - 6.0%|