Taxes

Corporate Income Tax
State law sets the corporate income tax rate at 6.25 percent of net taxable income earned by a business in Missouri. This is lower than most of the 46 states by imposing a corporate income tax. In addition, Missouri allows 50 percent of federal income tax payments to be deducted before computing taxable income. Using this deduction, a corporation with a taxable income of $1 million would have a Missouri effective tax rate of only 5.2 percent.

Missouri Taxable Income
An important tax advantage for Missouri businesses is the amount of income considered taxable-only income earned in Missouri is taxed. Two allocation options are offered for calculating this income: (1) the three factor formula based on sales, property and payroll, or (2) the single-factor formula, based only on sales. Missouri is the only state that permits companies to choose the formula that results in the lesser corporate income tax liability. This means that companies are not penalized for locating property and jobs in Missouri as they are in the other states. In addition, it is important to note that Missouri has not adopted worldwide or nationwide unitary tax assessment in computing multinational corporate income tax liability.

Personal Income Tax
Missouri’s individual income tax rates are graduated from a low of 1/1/2 percent on a taxable incomes of $1,000 or less, to a high of $315 plus 6 percent on taxable income in excess of $9,000. Taxable income may be reduced by 100 percent of federal income tax payments, $1,200 for each dependent, $2,100 for each personal exemption, and by the federal standard deduction or Missouri itemized deduction.

Personal Property and Real Estate Taxes
All property is assessed as of January 1 of the given year. City and county taxes are due Nov. 1 and become delinquent after December 31; interest and penalties are added after December 31. City and County taxes are paid to the Collector of Revenue, Buchanan County Courthouse, Fifth and Jules streets, (816) 271-1401.