Missouri State Income Tax

Missouri state income tax is a tax on ordinary income. Ordinary income includes income from a person’s job, business profits, investments, rental property, and royalty payments. It doesn’t include long-term capital gains or qualified dividends, which get preferential tax treatment. The Missouri state income tax is imposed on residents and nonresidents with Missouri taxable income. The state’s tax brackets range from 2% to 4.95%, with a higher rate as your taxable income increases. In addition, local city income taxes may apply. Residents must file a state income tax return if they have earnings of more than $8,449 per year. In addition to the state income tax, some cities levy their own local taxes. For example, Kansas City and St. Louis each impose a local income tax of 1%.

How to Pay Missouri State Income Tax?

You can pay your Missouri State Income Tax online using the Department’s website. You can also use an eCheck or debit card to make your payment. There is a fee for both options. The Missouri department offers payment plans to help individuals who are struggling to pay their state taxes. The process is relatively simple and is available to most taxpayers. However, you must be current on all your filing obligations to qualify for a payment plan.

To pay your state taxes online, visit the official Missouri website and click on “eFiling and Payment.” Then select your filing status and enter the required information. After you submit your return, the system will tell you when to expect your refund.

Missouri Tax Payment Plans

Individuals and businesses who owe taxes in the state of Missouri can apply for a payment plan online. The process is streamlined and typically takes just a few minutes. However, it’s important to understand that you must file all current tax returns to qualify for a Missouri state income tax payment plan.

If you fail to file your tax return or pay your tax bill on time, the state will penalize you. The Department of Revenue (DOR) charges a failure-to-file penalty and a failure-to-pay penalty equal to 5% of the unpaid balance. If you’re not sure how to manage your tax liability, a financial advisor can help.

Missouri Tax Credits and Deductions

Missouri has several tax credits and deductions, including a standard deduction and personal exemptions. It also has a property tax credit for senior citizens and a renter’s credit. It also provides for a deduction on long-term care insurance premiums. For example, there is a working family credit and a transportation facilities deduction. Farmers can claim a beginning farmer deduction. And remote sellers can automatically file and remit Missouri sales tax using a tax filing software.