The Tax Foundation

Tax Data

Missouri

The Facts on Missouri's Tax Climate

Here are some basic facts on Missouri's tax system and how it compares to other states:

Tax Freedom Day Arrived on April 14 in Missouri
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2008, Missouri taxpayers had to work until April 14 (ranked 36th nationally) to pay their total tax bill, over a week earlier than national Tax Freedom Day (April 23). Neighboring states' Tax Freedom Days are as follows: Iowa, April 16 (ranked 34th); Nebraska, April 19 (ranked 25th) Kansas, April 18 (ranked 26th); Oklahoma, April 11th (ranked 43rd); Arkansas, April 17 (ranked 30th); Tennessee, April 11th (ranked 44th); Kentucky, April 10th (ranked 45th); and Illinois, April 23 (ranked 16th).

Tax Freedom Day has been projected using the most up-to-date economic and budget projections from official government agencies. However, Tax Foundation estimates of average state and local tax rates for 2008 will not be released until later this spring as we await more up-to-date data from various government agencies.
Full study of Tax Freedom Day, nationwide and in each state

Missouri's State/Local Tax Burden Below Average
Estimated at 9.2% of income, Missouri's state/local tax burden percentage ranks 32nd highest nationally, below the national average of 9.7%. Taxpayers in Missouri pay $3,508 per capita in state and local taxes.
Missouri's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2008

Missouri's 2008 Business Tax Climate Ranks 15th
Missouri ranks 15th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. Neighboring states ranked as follows: Iowa (45th), Nebraska (43rd), Kansas (33rd), Oklahoma (19th), Arkansas (35th), Tennessee (16th), Kentucky (36th) and Illinois (28th).
50-State Comparison of Business Tax Climates (data only)
2008 State Business Tax Climate Index, Fifth Edition (full study)

Missouri's Individual Income Tax System
Missouri's personal income tax system features ten separate income brackets, which is the most of any state in the nation. The top rate of 6% kicks in at a relatively low income level of $9,000. Among states levying personal income taxes, Missouri's top rate of 6.0% is 22nd highest. Missouri's 2005 individual income tax collections were $745 per person, which ranked 28th highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita

Missouri's Corporate Income Tax System
Missouri's corporate tax structure consists of a flat rate of 6.25% on all corporate income. Among states levying corporate income taxes, Missouri's top rate ranks the state 35th highest. In 2006, state-level corporate tax collections (excluding local taxes) were $58.82 per capita, ranking the state 46th highest nationally.
50-State Table of Corporate Income Tax Rates, 2000-2008
50-State Table of State and Local Corporate Income Tax Collections Per Capita and Per Household, 2005
50-State Table of State Corporate Income Tax Collections Per Capita, 2006

Missouri's Sales, Gasoline and Cigarette Taxes among Lowest Nationally
Missouri levies a 4.225% sales tax on transactions, which is below the national median of 5.4 percent. In 2005, state and local governments combined collected $1,215 per person in sales taxes, which is ranked 27th highest nationally. Missouri's gasoline tax stands at 17.6 cents per gallon, ranking 6th lowest nationally. The state's cigarette tax stands at 17 cents per pack of twenty, which is 2nd lowest nationally. The sales tax was adopted in 1934, the gasoline tax in 1925 and the cigarette tax in 1955.
50-State Table of Sales and Excise Tax Rates
50-State Table of State and Local General Sales and Gross Receipts Tax Collections Per Household and Per Capita, Fiscal Year 2005

Missouri Property Taxes: Comparatively Low
Missouri is one of the 37 states that collect property taxes at both the state and local levels. As in most states, local governments collect far more. Missouri's localities collected $4,281,624,000 in property taxes in fiscal year 2004, which is the latest year the Census Bureau published state-by-state property tax collections. At the state level, Missouri collected $22,763,000 in property taxes during FY 2004, making its combined state/local property taxes $4,304,387,000. That brings its per capita collection to $747, ranking 37th highest nationally.
State property tax collections per capita by state

Federal Tax Burdens and Expenditures: Missouri is a Beneficiary State:
Compared to the average state, Missouri taxpayers receive more in federal funding per dollar of federal taxes paid. In 2004, Missouri citizens received approximately $1.29 in the way of federal spending. This ranks the state 20th highest nationally and represents a slight rise from 1992 when Missouri received $1.25 per dollar of taxes in federal spending, ranking17th highest nationally. Neighboring states and the federal spending received per dollar of federal tax collected were: Iowa ($1.11), Nebraska ($1.07), Kansas ($1.12), Oklahoma ($1.48), Arkansas ($1.47), Tennessee ($1.30), Kentucky ($1.45) and Illinois ($0.73).
Comparing the amount of federal taxes sent to Washington with the amount of federal spending coming back to the state

Tax Data from The Tax Foundation