Budget & Taxes (Income Tax)

passed both · Missouri · House Apr 23, 2026

HJR 173: Proposes a constitutional amendment relating to taxation

HJR 173 proposes a constitutional amendment to eliminate Missouri's state individual income tax by 2031 if specific revenue goals are met, requiring the legislature to set a tax rate below 1.4% for any tax year starting in 2031 or later. It also restricts expanding sales and use taxes to new services beyond what was taxed as of January 1, 2015, unless the expansion is explicitly tied to reducing the income tax. To offset revenue changes from any tax base expansion, local governments must adjust property taxes, earnings taxes, or sales tax rates by July 1, 2029, without reducing school funding. The amendment further mandates that sales tax rates be adjusted annually to maintain pre-2029 revenue levels, adjusted for inflation. This amendment requires voter approval before taking effect.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates state income tax by 2031 and restricts sales tax expansions, providing tax relief and limiting tax increases per constitutional amendment.95% confidence

Sub-Topics Income Tax Sales Tax

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in committee · Missouri · House May 15, 2026

HB 2754: Modifies provisions relating to income tax

HB 2754 modifies Missouri's individual income tax rates. It sets a temporary top tax rate of 4.95% for tax years 2023-2026, replacing the previous structure. After 2026, the top rate permanently drops to 4.7% for all Missouri resident taxpayers. The bill also establishes a mechanism allowing annual 0.1% rate reductions (up to ten times) if state revenue exceeds prior-year levels, effective January 1 of each year. This directly affects Missouri residents filing state income tax returns.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill permanently reduces top income tax rate to 4.7% and enables annual rate cuts if revenue exceeds prior years, promoting fiscal responsibility and tax relief for taxpayers.95% confidence

Sub-Topics Business Taxes Income Tax Revenue

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in committee · Missouri · House May 15, 2026

HB 2690: Establishes the "Fair Tax Act of 2026" which replaces the state individual and corporate income tax and the estate tax with a tax based on all new retail sales and services

HB 2690 would replace Missouri's individual and corporate income taxes, estate tax, and related deductions with a 5.11% tax on all new retail purchases and services starting in 2028. It requires the state to adjust the tax rate if revenue changes and provides monthly sales tax rebates to qualifying families based on federal poverty guidelines. The bill directly affects all Missouri residents and businesses by shifting tax responsibility from income to consumption. It must be approved by voters in a 2026 referendum to take effect.

Topics ✓ Budget & TaxesSupports Budget & TaxesReplaces income/estate taxes with consumption tax + rebates for low-income families, shifting burden to consumption while providing tax relief per poverty guidelines, aligning with fiscal fairness indicators.95% confidence

Sub-Topics Business Taxes Income Tax Sales Tax

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in committee · Missouri · House May 15, 2026

HB 2955: authorizes a tax credit for providing services to homeless persons

HB 2955 creates a Missouri tax credit for businesses and organizations providing services to homeless individuals. Eligible taxpayers (such as job training agencies, employment providers, or housing organizations) can claim up to $10,000 annually in income tax credits for services like job training, employment (28+ hours/week at minimum wage), or housing support specifically for homeless persons. Certification by the Department of Economic Development is required, with annual renewal, and credits are non-refundable but carry forward for up to three years. The total annual credit amount is capped at $1 million. This bill directly affects service providers who meet the certification criteria, not homeless individuals themselves.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit for homeless services, providing tax relief to businesses incentivizing public service provision and supporting economic development funding.95% confidence ✓ Criminal JusticeSupports Criminal JusticeProvides housing/job training for homeless, reducing recidivism potential through rehabilitation-focused services.80% confidence ✓ HousingSupports HousingBill provides tax credit for housing support services to homeless persons, directly advancing affordable housing for vulnerable population through funding incentives.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides tax credit for job training/employment services (28+ hrs/wk at minimum wage) for homeless individuals, advancing workforce participation and employment standards.90% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives Affordable Housing Homelessness Housing Finance Minimum Wage Professional Licensing Workforce Development Tags Economic Development

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in committee · Missouri · House May 15, 2026

HJR 155: Proposes a constitutional amendment replacing individual and corporate income tax and sales and use tax with a sales tax on retail sales of new tangible property and taxable services

HJR 155 proposes replacing Missouri's individual and corporate income taxes and current sales tax with a new 5.11% tax on retail sales of new tangible property and taxable services, effective for tax years beginning January 1, 2028. It would exempt business purchases for resale, operations (including agriculture), and investment property held exclusively for appreciation or income. The bill requires revenue neutrality adjustments if tax revenue falls short of lost income tax revenue, with local tax rates recalculated to maintain previous revenue levels. This constitutional amendment must be approved by Missouri voters in the 2026 general election.

Topics ✓ Budget & TaxesSupports Budget & TaxesProposes replacing income/sales taxes with new sales tax structure, requiring revenue neutrality - directly addresses tax policy framework.95% confidence

Sub-Topics Business Taxes Income Tax Sales Tax

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in committee · Missouri · Senate Jan 8, 2026

SB 936: Reauthorizes an income tax deduction for certain savings accounts

SB 936 reauthorizes a Missouri income tax deduction for contributions to "long-term dignity savings accounts," primarily benefiting individual taxpayers who use these accounts for qualifying expenses. It allows a 100% deduction of contributions up to $4,000 (or $8,000 for married couples filing jointly) from taxable income, with earnings in these accounts exempt from state income tax. The deduction requires taxpayers to verify contributions via an affidavit, and any distributions not used for eligible expenses must be added back to taxable income. The program expires automatically on December 31, 2031, unless reauthorized by the legislature.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides 100% income tax deduction for savings contributions, reducing taxable income for eligible taxpayers per tax relief indicators.95% confidence

Sub-Topics Income Tax

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in committee · Missouri · House Mar 5, 2026

HB 2059: Modifies provisions relating to income tax deductions for private pensions

HB 2059 modifies Missouri's income tax rules for private pension income by repealing an existing section and replacing it with new provisions. It directly affects Missouri taxpayers receiving retirement benefits from privately funded sources (like 401(k)s or IRAs, excluding Roth IRAs), setting specific deduction limits based on tax years: up to $6,000 annually for benefits received before 2027, increasing to $12,000 for tax years starting in 2027 or later. The bill also clarifies that these deductions apply only to retirement income from private sources, not public pensions, and excludes Roth IRAs from the deduction calculation. These changes adjust how much pension income is taxable for Missouri residents filing state returns.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax deduction limits for pension income ($6k to $12k), providing tax relief to retirees and aligning with tax relief indicators for middle/lower income.85% confidence

Sub-Topics Income Tax Pensions

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in committee · Missouri · Senate Feb 24, 2026

SB 1063: Authorizes an income tax deduction for certain survivor benefits

SB 1063 would allow survivors receiving specific types of benefits (like those from military service or certain public pensions) to deduct these payments from their taxable income when filing state income taxes. This policy change directly affects eligible survivors who currently include these benefits in their taxable income. The bill’s key mechanism is creating a new deduction category for qualifying survivor benefits, reducing the amount of income subject to state tax. The bill is currently pending review by the Senate Veterans and Military Affairs Committee after its initial reading. (Note: Specific benefit types and deduction amounts are not detailed in the provided abstract.)

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax deduction for survivor benefits, reducing taxable income for eligible recipients, aligning with tax relief support indicators.95% confidence ✓ VeteransSupports VeteransBill provides tax deduction for military survivor benefits, reducing tax burden on veterans' families' income90% confidence

Sub-Topics Income Tax Veteran Benefits

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passed both · Missouri · Senate May 15, 2026

SB 994: Modifies provisions relating to taxation

SB 994 modifies Missouri's income tax return filing rules. It sets the deadline for filing state income tax returns to match the federal deadline under 26 U.S.C. 6072 (typically April 15), requiring payment by that date without additional notices. It also adds a provision preventing penalties or interest for taxpayers denied tax credits due to funding shortages, provided they pay within 60 days of the denial notice. This bill directly affects Missouri taxpayers and the Department of Revenue, changing filing deadlines and credit dispute procedures.

Topics ✓ Budget & TaxesSupports Budget & TaxesPrevents penalties/interest for taxpayers denied credits due to funding shortages, providing tax relief during state budget shortfalls.95% confidence

Sub-Topics Income Tax Procurement Property Tax

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in committee · Missouri · House May 15, 2026

HB 2620: Modifies provisions relating to an income tax deduction for certain National Guard duties

HB 2620 creates a Missouri income tax deduction for National Guard and reserve military members' training pay. It phases in a percentage deduction starting at 20% for 2020, increasing by 20% annually until reaching 100% by 2024. The deduction applies to income from inactive duty training (IDT), annual training (AT), and certain enlistment bonuses (starting 2025), but excludes civilian federal service pay. This directly affects Missouri taxpayers who serve part-time in National Guard or reserve units.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax deduction for National Guard training pay, reducing taxable income for military members and providing targeted tax relief under Missouri's income tax code.95% confidence

Sub-Topics Income Tax

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