Missouri — Personal Income Tax

Missouri imposes personal income tax on residents and nonresidents with Missouri-source income. The filing obligation turns on residency status and income thresholds.

## Residents

Missouri imposes tax for every taxable year on the Missouri taxable income of every resident. Source: Mo. Rev. Stat. § 143.011(1)

A resident is an individual who is domiciled in Missouri, unless that individual (1) maintains no permanent place of abode in Missouri, (2) maintains a permanent place of abode elsewhere, and (3) spends not more than 30 days of the taxable year in Missouri. An individual not domiciled in Missouri may also be treated as a resident if the individual maintains a permanent place of abode in Missouri and spends more than 183 days of the taxable year in the state. Source: Mo. Rev. Stat. § 143.101(1)

Residents are generally not required to file a Missouri return if they are not required to file a federal return. If required to file a federal return, residents may not have to file a Missouri return if their Missouri adjusted gross income is less than $1,200 or less than the amount of their standard deduction plus exemption amount. Source: Missouri Department of Revenue, Individual Income Tax FAQs

## Nonresidents

Missouri imposes tax for every taxable year on the income of every nonresident individual that is derived from sources within Missouri. Source: Mo. Rev. Stat. § 143.041(1)

A nonresident is an individual who is not a resident of Missouri. Source: Mo. Rev. Stat. § 143.101(2)

Nonresidents with less than $600 of Missouri income are generally not required to file a Missouri return. Source: Missouri Department of Revenue, Individual Income Tax FAQs

## Withholding and refunds

If Missouri tax is withheld from wages and shown on a Form W-2, the taxpayer must file a Missouri return to claim a refund even if not otherwise required to file. Source: Missouri Department of Revenue, Individual Income Tax FAQs

## Conformity with federal filing status

The filing status used on a Missouri return must match the filing status used on the federal return. Source: Missouri Department of Revenue, Nonresidents and Residents with Other State Income

Missouri imposes a graduated personal income tax with eight brackets for the 2025 tax year. The top marginal rate is 4.7% on Missouri taxable income above $9,191. The first $1,313 of taxable income is not subject to tax. The same bracket structure applies regardless of filing status.

The 2025 rates are 0% ($0–$1,313), 2.0% ($1,314–$2,626), 2.5% ($2,627–$3,939), 3.0% ($3,940–$5,252), 3.5% ($5,253–$6,565), 4.0% ($6,566–$7,878), 4.5% ($7,879–$9,191), and 4.7% (over $9,191).

Source: Mo. Rev. Stat. § 143.011 and Missouri Department of Revenue, 2025 Individual Income Tax Year Changes

Missouri adjusted gross income for resident individuals equals federal adjusted gross income, subject to state-specific additions and subtractions. The statute prescribes modifications including additions for certain out-of-state municipal bond interest and subtractions for items such as U.S. government bond interest, Social Security benefits, public pension income, and various other items detailed in subsequent subsections of the statute.

Source: Mo. Rev. Stat. § 143.121

Missouri's standard deduction equals the allowable federal standard deduction for the tax year. For 2025, those amounts are $15,750 (single), $31,500 (married filing jointly), and $23,625 (head of household). Taxpayers age 65 or older, or blind, may claim an additional standard deduction of $2,000 (single or head of household) or $1,600 (married), per qualifying person and condition.

Source: Mo. Rev. Stat. § 143.131 and Missouri Department of Revenue, 2025 Income Tax Reference Guide

Missouri resident individuals, estates, and trusts may claim a credit against Missouri income tax for income taxes paid to another state (or political subdivision) or the District of Columbia on income that is derived from sources in that other jurisdiction and is also subject to Missouri tax. The credit prevents double taxation on the same income earned outside Missouri by Missouri residents.

## Statutory framework and proportional limitation

Mo. Rev. Stat. § 143.081(1) authorizes the credit for "the amount of any income tax imposed for the taxable year by another state of the United States (or a political subdivision thereof) or the District of Columbia on income derived from sources therein and which is also subject to tax pursuant to sections 143.005 to 143.998."

The credit may not exceed a proportional limitation. Mo. Rev. Stat. § 143.081(2) provides that "the credit provided pursuant to this section shall not exceed an amount which bears the same ratio to the tax otherwise due pursuant to sections 143.005 to 143.998 as the amount of the taxpayer's Missouri adjusted gross income derived from sources in the other jurisdiction bears to the taxpayer's Missouri adjusted gross income derived from all sources." In mathematical terms, the credit is capped at: (Missouri tax due) × (other-state-source income ÷ total Missouri AGI).

For estates and trusts, Missouri taxable income is substituted for Missouri adjusted gross income in applying this limitation. If income tax of more than one other jurisdiction is imposed on the same item of income, the credit may not exceed the limitation that would result if the taxes of all the other jurisdictions applicable to the item were deemed to be of a single jurisdiction.

## Measure of income tax imposed

For purposes of the credit, "income tax imposed" means "that amount of tax before any income tax credit allowed by such other state or the District of Columbia if the other state or the District of Columbia authorizes a reciprocal benefit for residents of this state." This provision allows Missouri residents to compute the credit using the other state's pre-credit tax where the other state grants a reciprocal benefit.

## S corporation shareholders: two distinct credits

Mo. Rev. Stat. § 143.081(3) creates two separate credit pathways for Missouri resident S corporation shareholders.

Subsection (3)(1)—pro rata share of S corporation's tax paid: A Missouri resident S shareholder "shall be considered to have paid a tax imposed on the shareholder in an amount equal to the shareholder's pro rata share of any net income tax paid by the S corporation to a state which does not measure the income of shareholders on an S corporation by reference to the income of the S corporation or where a composite return and composite payments are made in such state on behalf of the S shareholders." This provision addresses states that impose entity-level tax on S corporations or that collect composite tax on behalf of nonresident shareholders.

Subsection (3)(2)—Schedule 1 credit for untaxed source-state income: "A resident S shareholder shall be eligible for a credit issued pursuant to this section in an amount equal to the individual income tax imposed pursuant to this chapter on such shareholder's share of the S corporation's income derived from sources in another state of the United States or the District of Columbia, and which is subject to income tax pursuant to this chapter but is not subject to income tax in such other jurisdiction or a political subdivision thereof." This credit, claimed on Form MO-CR, Schedule 1, addresses situations where Missouri taxes the S corporation income but the source state does not. The credit is subject to the proportional limitation in subsection (2).

## Out-of-state bank S corporation shareholders

Mo. Rev. Stat. § 143.081(4) provides that for Missouri resident shareholders of an S corporation that is a bank chartered by a state, the Office of Thrift Supervision, or the Comptroller of the Currency, "each Missouri resident S shareholder of such out-of-state bank shall qualify for the shareholder's pro rata share of any net tax paid, including a bank franchise tax based on the income of the bank, by such S corporation where bank payment of taxes are made in such state on behalf of the S shareholders by the S bank to the extent of the tax paid."

## Pass-through entity level tax credit

Mo. Rev. Stat. § 143.436.9 provides that a member (partner or shareholder) of a pass-through entity is allowed a credit for the member's pro rata share of pass-through entity level tax actually paid to another state, if the tax in the other state is substantially similar to Missouri's SALT Parity Act (codified at Mo. Rev. Stat. § 143.436). This credit is subject to the same proportional limitation as the resident credit described in § 143.081(2).

Form MO-CR instructions for 2025 state that a pass-through entity level tax program of another state or the District of Columbia is substantially similar to the Missouri SALT Parity Act if: (1) the partnership or S corporation only pays the tax if it voluntarily elects to be subject to that pass-through entity level tax; (2) the tax is imposed directly on the income of the partnership or S corporation; (3) the partner or shareholder receives an individual income tax credit for all or part of the partner or shareholder's pro rata share of the tax paid by the partnership or S corporation; and (4) the tax is not the mere payment, withholding, or composite payment of an income tax imposed on the partners or shareholders.

## Filing and documentation

The Missouri Department of Revenue instructs Missouri residents who earned income in another state and paid income tax to that state to complete Form MO-CR (Credit for Income Taxes Paid to Other States) and submit it with Form MO-1040 (long form), along with a copy of the other state's return(s) and all W-2 forms. If taxes were paid to more than one state, a separate Form MO-CR is generally required for each state.

The credit is nonrefundable and cannot reduce Missouri tax liability below zero.

Source: Mo. Rev. Stat. § 143.081 Source: Mo. Rev. Stat. § 143.436.9 Source: Missouri Department of Revenue, Form MO-CR Instructions (2025) Source: Missouri Department of Revenue, Nonresidents and Residents with Other State Income

Missouri taxes nonresidents only on income derived from sources within Missouri. Mo. Rev. Stat. § 143.041(1) imposes tax on "the income of every nonresident individual which is derived from sources within this state." The operative sourcing rules appear in Mo. Rev. Stat. § 143.181, which defines what constitutes Missouri-source income for nonresidents.

## General sourcing framework

Missouri nonresident adjusted gross income is the part of the nonresident's federal adjusted gross income that is derived from Missouri sources, modified in the same manner as for resident individuals under § 143.121. It equals the net amount of income, gain, loss, and deduction items in federal AGI that are derived from or connected with sources in Missouri, plus the portion of § 143.121 modifications that relate to Missouri-source income.

Source: Mo. Rev. Stat. § 143.181(1)

## Categories of Missouri-source income

Under Mo. Rev. Stat. § 143.181(2), income, gain, loss, and deduction derived from or connected with Missouri sources are items attributable to:

1. Real and tangible personal property in Missouri — The ownership or disposition of any interest in real or tangible personal property located in this state.

1. Business, trade, profession, or occupation carried on in Missouri — Income from a business, trade, profession, or occupation conducted in Missouri.

1. Lottery winnings — Winnings from a wager placed in a lottery conducted by the Missouri State Lottery Commission, if the proceeds are required under the Internal Revenue Code or IRS regulations to be reported by the lottery commission to the IRS.

1. Other gambling and gaming winnings — Winnings from any other wager placed in Missouri or from any wagering transaction, gaming activity, or gambling activity in Missouri, if the proceeds are required under the IRC or IRS regulations to be reported by the payer to the IRS.

Source: Mo. Rev. Stat. § 143.181(2)

## Intangible personal property: generally not Missouri-source

Income from intangible personal property—including annuities, dividends, interest, and gains from the disposition of intangible personal property—is not considered Missouri-source income except in three narrow circumstances under Mo. Rev. Stat. § 143.181(3):

1. The intangible property is employed in a business, trade, profession, or occupation carried on in Missouri;

1. The income is from winnings from a wager placed in a lottery conducted by the Missouri State Lottery Commission, if reportable to the IRS as described above; or

1. The income is from winnings from any other wager placed in Missouri or from any wagering transaction, gaming activity, or gambling activity in Missouri, if reportable to the IRS as described above.

This means that a nonresident's portfolio income—interest, dividends, and capital gains from stocks, bonds, and similar intangibles—is not Missouri-source income unless the intangible is used in a Missouri business.

Source: Mo. Rev. Stat. § 143.181(3)

## Multi-state businesses: apportionment and allocation

If a business, trade, profession, or occupation is carried on partly within and partly outside Missouri, the items of income and deduction derived from or connected with Missouri sources are determined by apportionment and allocation under regulations prescribed by the Director of Revenue.

Source: Mo. Rev. Stat. § 143.181(5)

## Armed Forces pay exclusion for nonresidents

Compensation paid by the United States for service in the Armed Forces performed by a nonresident does not constitute income derived from sources within Missouri. A nonresident service member's military pay is not Missouri-source income, even if the service member is stationed in Missouri.

Source: Mo. Rev. Stat. § 143.181(6)

## Pass-through entity income

A nonresident's Missouri-source income includes the individual's:

• Distributive share of partnership income and deductions determined under Mo. Rev. Stat. § 143.421;
• Share of estate or trust income and deductions determined under Mo. Rev. Stat. § 143.391; and
• Pro rata share of S corporation income and deductions determined under Mo. Rev. Stat. § 143.471(3).

These amounts are computed as Missouri-source to the nonresident partner, beneficiary, or shareholder according to the specific pass-through sourcing rules in those sections.

Source: Mo. Rev. Stat. § 143.181(1)(a)–(c)