Research Areas
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 Arrives on April 4 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 2011, Missouri taxpayers work until April 4 (ranked 33rd nationally) to pay their total tax bill, 8 days earlier than national Tax Freedom Day (April 12). Neighboring states' Tax Freedom Days are as follows: Iowa, April 6 (ranked 29th); Nebraska, April 12 (ranked 15th); Kansas, April 10 (ranked 20th); Oklahoma, April 2 (ranked 41st); Arkansas, April 4 (ranked 38th); Tennessee, April 3 (ranked 35th); Kentucky, April 2 (ranked 42nd); and Illinois, April 15 (ranked 9th).
Full study of Tax Freedom Day, nationwide and in each state
Missouri's State and Local Tax Burden Below National Average
Missouri's 2009 state and local tax burden of 9.0% of income is below the national average of 9.8%. Missouri's tax burden has decreased overall from 9.2% (35th nationally) in 1977 to 9.0% (34th nationally) in 2009. Taxpayers in Missouri pay $3,425 per capita in state and local taxes.
Missouri's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
Missouri's 2012 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 rank as follows: Iowa (41st), Nebraska (30th), Kansas (25th), Oklahoma (33rd), Arkansas (31st), Tennessee (14th), Kentucky (22nd) and Illinois (28th).
50-State Comparison of Business Tax Climates(data only)
2012 State Business Tax Climate Index, Ninth Edition (full study)
Missouri's Individual Income Tax System
Missouri's personal income tax system features ten separate income brackets. 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 23rd highest. Missouri's 2008 state-level individual income tax collections were $863 per person, which ranked 25th 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 34th highest. In 2008, state-level corporate tax collections (excluding local taxes) were $65 per capita, ranking the state 46th highest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita and Per Household
50-State Table of State Corporate Income Tax Collections Per Capita
Missouri's Sales and Excise Taxes
Missouri levies a 4.225% sales tax on transactions, which is below the national median of 6 percent. In 2007 combined state and local general and selective sales tax collections were $1,226 per person, which ranks 35th highest nationally. Missouri's gasoline tax stands at 17.3 cents per gallon, ranking 44th highest nationally. The state's cigarette tax stands at 17 cents per pack of twenty, which is 49th highest nationally. The sales tax was adopted in 1934, the gasoline tax in 1925 and the cigarette tax in 1955.
50-state table of sales, cigarette, gas, beer, wine, and spirits tax rates.
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
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 $853.20 per capita in property taxes in fiscal year 2006, which is the latest year the Census Bureau published state-by-state property tax collections. At the state level, Missouri collected $4.32 per capita during FY 2006, making its combined state/local property taxes $857.52 per capita, ranking 36th 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
