Missouri State Tax Deductions

Missouri offers a variety of state tax deductions and exemptions designed to reduce taxable income, helping residents save on state income taxes.

Key deductions include the standard deduction, itemized deductions, and special exemptions for certain types of income, such as pensions and Social Security benefits. Understanding these options can help ensure you maximize your tax savings.

Standard Deduction

Missouri’s standard deduction amounts align with federal guidelines and vary depending on your filing status:

• Single: $15,750
• Married Filing Combined (equivalent to Married Filing Jointly federally): $31,500
• Married Filing Separately: $15,750
• Head of Household: $23,625

The standard deduction simplifies filing by allowing taxpayers to deduct a fixed amount from their income without itemizing individual expenses.

Itemized Deductions

If your deductible expenses—such as mortgage interest, charitable contributions, medical expenses, or certain taxes—exceed the Missouri standard deduction, you may choose to itemize deductions. Note the following:

• You generally must itemize on your Missouri return if you itemize on your federal return, and vice versa.
• Missouri also allows flexibility to choose whichever method (standard or itemized) provides the greater tax benefit.

Other Key Missouri Deductions and Subtractions

Missouri provides several state tax deductions and income subtractions not available in all states:

1. Federal Income Tax Deduction
   Missouri allows taxpayers to deduct a percentage of their federal income tax liability from their Missouri adjusted gross income (AGI). The percentage varies depending on your Missouri AGI.
2. Pension and Social Security Exemption
   Eligible taxpayers may receive a 100% exemption on public and private pensions as well as Social Security benefits, subject to age and income limitations.
3. 529 Plan Contributions (MOST Plan)
   Contributions to Missouri’s MOST 529 College Savings Plan are deductible from state income tax: Up to $8,000 per individual and up to $16,000 for married couples filing jointly
4. Capital Gains Subtraction
   Beginning January 1, 2025, Missouri allows a 100% subtraction of capital gains reported for federal tax purposes when calculating Missouri AGI.
5. Long-Term Care Insurance Premiums
   Premiums paid for qualified long-term care insurance may be eligible for a state tax deduction.

Electronic Filing Recommendation

Missouri encourages electronic filing (e-filing) through the Missouri Department of Revenue (DOR) website or authorized tax software. Benefits of e-filing include:

• Faster processing and quicker refunds
• Automatic error checking to reduce mistakes
• Direct deposit options for faster refunds
• Secure submission without mailing paper forms

The Missouri DOR provides forms, instructions, and e-filing options at: https://dor.mo.gov