Flat-Fee Tax Preparation for Missouri Residents

Missouri has a top income tax rate of 4.95% (reduced from higher rates in recent years) — the rate is scheduled to continue declining under MO's tax reduction framework

Kansas City and St. Louis impose a 1% earnings tax on wages and self-employment income earned within city limits — non-residents working in those cities owe the earnings tax

Missouri does not tax Social Security benefits — a significant benefit for MO retirees

MO provides a property tax credit (Circuit Breaker Credit) for elderly and disabled homeowners and renters whose property tax or rent burden exceeds a threshold relative to income

The MO pass-through entity tax election allows eligible entities to pay MO income tax at the entity level for SALT cap planning

Missouri's real estate transfer tax: MO does not impose a statewide transfer tax — only recording fees apply — one of the most favorable states for real estate transactions

Missouri does not impose a state estate tax or inheritance tax

MO conforms to federal depreciation rules, simplifying planning for real estate investors and businesses with capital expenditures

Missouri Real Estate Tax

Missouri's real estate market features strong investor activity in Kansas City and St. Louis metros, with affordable entry prices and solid rental yields. The absence of a state transfer tax and low property taxes in many MO counties improve investment economics. Real estate gains are taxed at MO ordinary rates, and federal depreciation rules apply in full.

Missouri Business Tax

Missouri businesses benefit from a declining income tax rate, no estate tax, no state transfer tax, and federal depreciation conformity. The Kansas City and St. Louis earnings taxes add compliance obligations for businesses with employees or operations in those cities. The MO PTET election provides SALT cap relief for eligible pass-through entities.

Do I need to file a Missouri state tax return?

If you are a Missouri resident or earned MO-source income above the filing threshold, you must file a MO-1040. Missouri taxes residents on worldwide income at the current top rate. Social Security benefits are exempt from MO income tax. If you live or work in Kansas City or St. Louis, you must also file city earnings tax returns.

What is the Kansas City earnings tax?

Kansas City imposes a 1% earnings tax on all wages and self-employment income earned within Kansas City city limits. If you live in KC, you owe 1% on all your taxable income. If you live outside KC but earn wages in KC (e.g., you work in a KC office), you owe 1% on those wages. The earnings tax is filed separately from the MO state return. St. Louis also imposes a 1% earnings tax with similar rules.

What makes Missouri taxes unique?

Missouri's lack of a statewide real estate transfer tax and estate tax, combined with no taxation of Social Security, makes it favorable for real estate investors and retirees. The city earnings taxes in Kansas City and St. Louis are distinctive and frequently missed by taxpayers who work in those cities. MO's declining income tax rate improves its competitiveness over time.

Does Missouri have a pass-through entity tax?

Yes. Missouri offers a pass-through entity tax election for eligible S-corps and partnerships to pay MO income tax at the entity level. The payment is deductible on the federal return as a business expense, providing potential SALT cap relief. The election should be evaluated annually based on each owner's individual income tax situation.