Missouri State Taxes for the 2022 Tax Season – Forbes Advisor
Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.
The state of Missouri requires you to pay taxes whether you are a resident or a nonresident who receives income from a Missouri source.
State income tax rates are up to 5.4% and the sales tax rate is 4.225%.
Missouri offers tax deductions and credits to reduce your tax liability, including a standard deduction, itemized deductions, charitable contribution credits, and a seniors’ property tax credit.
Missouri Income Tax Brackets and Rates
Income Tax Deductions for Missouri
The state of Missouri offers a standard deduction for taxpayers. The 2021 standard deduction allows taxpayers to reduce their taxable income by $12,550 for single filers, $25,100 for joint filers of married persons, $18,800 for the head of household and $25,100 for joint filers. eligible widows/widowers.
You have the option of choosing the standard deduction or itemizing your deductions on your Missouri state tax return. However, if you were to itemize your deductions on your federal tax return, you must choose to itemize. You are required to itemize your deductions on your federal tax return if you file a marriage statement separately and your spouse chooses to do so.
Deduction for long-term care insurance
Taxpayers may be able to deduct the cost of long term care insurance premiums. The policy must be for at least 12 months of coverage.
Deduction for the purchase of a first home
Taxpayers who have contributed to a first-time home buyer account can deduct up to $800 of the amount contributed per year or $1,600 for married taxpayers filing jointly. Interest may be included in this deduction.
Achieve a deduction for contributing to a better life experience (ABLE)
Contributions to the Achieving a Better Life Experience (ABLE) program administered by the Missouri Achieving a Better Life Experience Board are tax exempt. The annual exempt contribution limit is $8,000 for singles or $16,000 for married couples filing jointly. To claim the deduction, you must include proof of your contributions when you file your taxes.
Missouri State Income Tax Credits
Food pantry, homeless shelter or soup kitchen tax credit
Taxpayers who contribute money or food to a food pantry, homeless shelter or soup kitchen can claim a non-refundable tax credit of 50% of the value of the contribution or amount donated. Donations to food banks and out-of-state organizations are not eligible for credit. The maximum credit you can claim in a year is $2,500 per person, and the claim cannot be more than your tax payable. If you contribute to more than one food pantry, shelter or soup kitchen, you will need to complete the MO-FPT form for each organization.
Tax credit for adoption with special needs
Missouri residents who adopt a child with special needs who is also a Missouri resident may receive a one-time non-refundable tax credit of up to $10,000 for adoption expenses per child. Since January 2022, if you adopt a child, you can claim the credit whether or not the child has special needs. However, the state will give priority to taxpayers who adopt a child with special needs. adoptions of any Missouri resident child will be eligible for the tax credit, regardless of special needs status.
Diaper bank tax credit
Donations of $100 or more to a diaper bank qualify for a tax credit of 50% of the donation. Donations can include cash, stocks, bonds, or real estate, and the organization must be a nonprofit organization located in Missouri. The credit cannot exceed your tax payable for the year and cannot exceed $50,000 per tax year.
Domestic violence shelter or rape crisis center tax credit
Donations of $100 or more to a domestic violence shelter or rape crisis center are eligible for a tax credit of 50% of the donation. Donations can include cash, stocks, bonds, or real estate, and the organization must be a nonprofit organization located in Missouri. The credit cannot exceed your tax payable for the year and cannot exceed $50,000 per tax year.
Maternity housing tax credit
Donations of $100 or more to a maternity hospital entitle you to a tax credit of 50% of the donation. Donations can include cash, stocks, bonds, or real estate, and the organization must be a nonprofit organization located in Missouri. The credit cannot exceed your tax payable for the year and cannot exceed $50,000 per tax year.
Health, hunger and sanitation tax credit
Donations to organizations that contribute to the health and hygiene needs of school-aged children may qualify for a tax credit of 50% of the donation. Donations can include cash, stocks, bonds, or real estate, and the organization must be a nonprofit organization located in Missouri.
Child Tax Credit Champion
Donations to a qualified court-appointed special advocate, children’s advocacy center, or crisis care center in Missouri may qualify for a tax credit of 50% of the donation. Your donation must be $100 or more to claim the credit.
Property tax credit
Missouri offers a tax credit to certain seniors and 100% disabled. The maximum value of the credit is $750 for renters and $1,100 for owners who occupied their dwelling. The amount of your credit depends on the amount of rent or property taxes you paid and your household income. Generally, the household income limit is $27,200 for single filers who rent and $30,000 for single filers who own their homes. For married couples who file returns jointly, the household income limit is $29,200 for renters and $34,000 for owners.
Do I have to pay income taxes in Missouri?
You are required to file a Missouri tax return if you receive income from a Missouri source.
There are a few exceptions:
- You are a resident of Missouri and your state-adjusted gross income is less than $1,200
- You are a nonresident and your Missouri income was less than $600
- Your state-adjusted gross income is less than the standard state deduction for your filing status.
Full-time and part-time residents of Missouri are subject to state income tax. Partial-year residents are taxed on income earned while in the state.
If you are a Missouri resident who paid taxes to another state, you can get a credit for the tax you paid by using Form MO-CR.
Sales tax and sales tax rate
Missouri charges a 4.225% sales tax.
Property taxes and property tax rates
Each county and city sets property tax rates.
Property tax exemptions
Missouri grants property tax exemptions to certain organizations using their property for educational, literary, scientific, religious, or charitable purposes.
Capital gains tax
Missouri allows taxpayers to report gains and losses from the sale of capital assets. Unlike federal income taxes, which allow taxpayers to have capital gains taxed at lower rates, the state of Missouri taxes capital gains as ordinary income.
Inheritance and inheritance tax and exemption from inheritance and inheritance tax
Missouri does not have an estate or inheritance tax.
Compare the best tax software of 2022