Budget & Taxes (Income Tax)

in committee · Missouri · Senate Jan 27, 2026

SB 1231: Authorizes an income tax deduction for certain research expenses

SB 1231 modifies Missouri's income tax code by adding specific federal tax adjustments to Missouri taxable income. It requires taxpayers to add back certain items excluded from federal taxable income, such as federal tax refunds related to pandemic relief, interest on some government bonds, and specific business deductions (including research-related deductions under federal Section 174 for tax years 2022+). This affects Missouri residents and nonresidents filing state tax returns who claim these federal deductions. The bill does not create new tax deductions but adjusts how existing federal tax items impact Missouri taxable income. It aligns Missouri’s tax base more closely with federal calculations for certain items, effective for tax years beginning in 2022 or later.

Topics ✓ Budget & TaxesSupports Budget & TaxesCloses federal deduction loophole for research expenses, requiring add-backs to taxable income and increasing state tax revenue per bill's tax code modification.95% confidence

Sub-Topics Income Tax

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in committee · Missouri · Senate Jan 27, 2026

SJR 74: Modifies provisions relating to income taxes

This constitutional amendment (SJR 74) would allow Missouri counties to impose their own local income tax if the state's income tax rate falls below 4.5%, provided voters approve the tax at a general election. It directly affects counties and their residents, as counties could add a local tax up to a combined total of 4.5% with the state rate. Key provisions require county voter approval before implementation, mandate that collected funds (minus 1% for collection costs) go to a dedicated "County Income Tax Trust Fund" for the county, and prohibit state control or appropriation of these funds. The amendment must be approved by voters in November 2026 to take effect.

Topics ✓ Budget & TaxesSupports Budget & TaxesEnables counties to impose local income tax (up to 4.5% combined rate), expanding local fiscal authority for budget management without restricting tax collection.95% confidence

Sub-Topics Appropriations Income Tax Sales Tax

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in committee · Missouri · House May 15, 2026

HB 2364: Authorizes an income tax deduction for employers who pay regular wages to employees serving jury duty

HB 2364 allows Missouri employers to claim a state income tax deduction for wages paid to employees while they serve jury duty, directly affecting businesses and self-employed individuals who cover employee wages during court service. The deduction equals 100% of the wages paid minus any jury duty compensation the employee receives from the court. This applies to all employers (including self-employed individuals treated as employees under the bill) for tax years beginning January 1, 2027, and expires six years after enactment unless renewed by lawmakers. Employers violating jury duty laws may lose the deduction or repay tax savings.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax deduction for employers, reducing their tax liability for wages paid during jury duty, a direct tax relief measure under tax incentives.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides tax incentive for employers to pay full wages during jury duty, protecting workers' income during mandatory service95% confidence

Sub-Topics Income Tax Tax Incentives

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in committee · Missouri · Senate Jan 27, 2026

SB 1191: Exempts certain families from income tax

SB 1191, titled the "Next Generation Family Act," exempts Missouri taxpayers with three or more children (who qualify for federal dependency exemptions) from state income tax starting in 2027. It directly affects families meeting this federal dependency threshold, regardless of the federal exemption amount. The bill requires the state Department of Revenue to create implementing rules, but the core change is a state tax exemption for qualifying households. This policy modifies the state income tax structure for eligible families beginning with tax years after 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts qualifying families (three+ children) from state income tax, providing direct tax relief aligned with middle/lower income support indicators.95% confidence

Sub-Topics Income Tax Sales Tax Tax Incentives

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in committee · Missouri · House May 15, 2026

HB 2616: Modifies provisions relating to the "Missouri Working Family Tax Credit Act" and makes the tax credit refundable

HB 2616 modifies Missouri's Working Family Tax Credit Act to make the tax credit refundable starting in 2027. This means eligible taxpayers who owe less state income tax than their credit amount will receive the difference as a refund, rather than losing it. The credit equals 10% of the federal Earned Income Tax Credit (EITC) for 2023, with a potential increase to 20% if Missouri's state revenue grows by at least $150 million over previous fiscal years. The bill also requires the state to proactively identify and notify eligible taxpayers who didn't apply for the credit, using data from federal and state tax records.

Topics ✓ Budget & TaxesSupports Budget & TaxesMakes tax credit refundable for low-income families, providing direct financial relief through expanded tax credit access under Missouri Working Family Tax Credit Act.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentMakes tax credit refundable, increasing financial support for low-income workers via expanded EITC-based credit, directly advancing worker benefits.95% confidence

Sub-Topics Income Tax Revenue Tax Credits

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in committee · Missouri · House May 15, 2026

HB 1739: Modifies provisions relating to the "Missouri Working Family Tax Credit Act", making the tax credit refundable

HB 1739 modifies Missouri's Working Family Tax Credit Act to make the state tax credit refundable for eligible low-to-moderate income residents starting in 2027. It allows qualifying taxpayers (those claiming the federal Earned Income Tax Credit) to receive a credit equal to 10% (potentially increasing to 20%) of their federal credit amount, with the refundability change applying only to tax years beginning January 1, 2027, and later. The credit percentage increase to 20% is tied to Missouri's state revenue growth exceeding prior years by $150 million. The bill also requires the state to proactively notify eligible taxpayers who didn't claim the credit and report annual usage statistics.

Topics ✓ Budget & TaxesSupports Budget & TaxesMakes tax credit refundable for low-to-moderate income residents, providing direct tax relief via 10-20% of federal EITC starting 2027.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentMakes tax credit refundable for low-income workers, expanding financial support and increasing disposable income for qualifying residents under the Working Family Tax Credit Act.95% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives

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in committee · Missouri · House Mar 31, 2026

HB 2205: Modifies provisions relating to income tax on retirement income from private and public sources

HB 2205 modifies Missouri's tax treatment of retirement income, affecting residents receiving pensions or retirement benefits. It establishes specific deduction limits for retirement income based on the benefit source (public vs. private), filing status, and income level, with varying annual caps (e.g., up to $6,000 for public benefits before 2027). For tax years beginning on or after January 1, 2027, the bill eliminates income-based limits, allowing full deduction of all private retirement income regardless of filing status or income. The changes apply to retirement benefits from government sources (like state pensions) or private plans (like 401(k)s), excluding Roth IRAs. This bill adjusts how retirement income is subtracted from taxable income under Missouri law.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax deductions for retirement income, reducing taxable income for retirees and aligning with tax relief indicators for middle/lower income groups.95% confidence

Sub-Topics Income Tax

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in committee · Missouri · House Apr 1, 2026

HB 1762: Modifies provisions relating to income tax deductions for private pensions

HB 1762 modifies Missouri's income tax rules for retirement benefits, primarily affecting taxpayers receiving private pension income. It increases the maximum deductible amount for retirement benefits from private sources: $6,000 annually for tax years 2002-2026, rising to $12,000 annually starting in 2027. The bill specifically includes 401(k) plans, IRAs, and other private retirement arrangements (but excludes Roth IRAs) in the deduction calculation. Deduction limits apply based on filing status (e.g., single, married filing jointly) and income thresholds, with higher limits for lower-income taxpayers.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax deductions for private pension income, providing relief to retirees by reducing taxable income under Missouri's income tax system.95% confidence

Sub-Topics Income Tax Pensions

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in committee · Missouri · House May 15, 2026

HB 2527: Establishes a tax credit for certain newspaper printing plants

HB 2527 creates a 50% tax credit against Missouri state income tax for qualifying newspaper printing plants, directly affecting businesses headquartered in Missouri that derive most revenue from printing publicly distributed newspapers. The credit equals half of eligible labor costs (reported on W-2s for pressroom/mailroom staff) incurred during the tax year, with a total annual cap of $7 million across all applicants. Taxpayers must apply to the Missouri Department of Revenue, and unused credits can be refunded or transferred. The program expires automatically six years after implementation (unless renewed by the legislature) and applies only to state tax liability under Chapters 143 or 148, excluding withholding tax.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides 50% tax credit for newspaper printing plants, reducing tax burden on qualifying businesses and incentivizing local employment in a public information sector.90% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives

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in committee · Missouri · Senate Jan 27, 2026

SB 1241: Authorizes an income tax deduction for tipped income

SB 1241 would allow workers who earn tips (such as servers or bartenders) to deduct their total tipped income from their taxable income when filing state income taxes. This means their taxable income would be reduced by the amount they earn in tips, lowering the overall tax they owe. The bill directly affects service industry workers who rely on tips as a significant part of their earnings. It creates a specific tax deduction mechanism for tipped income, rather than changing the tax rate or adding new taxes.

Topics ✓ Budget & TaxesSupports Budget & TaxesDirectly provides tax relief for lower-income service workers by allowing tip deductions, reducing taxable income and tax burden per tax relief indicators.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill reduces taxable income for tipped workers, increasing take-home pay and directly supporting financial security for service industry employees.95% confidence

Sub-Topics Income Tax Minimum Wage

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