What's New?

2025 Legislative Session

• View important taxation changes from the 2025 legislative session.

2025 Individual Income Tax Year Changes

The following changes are effective for the tax year beginning January 1, 2026, and will be reflected on the 2025 Missouri Individual Income Tax Returns.

Due Date

• The due date for the 2025 Missouri Individual Income Tax Return is April 15, 2026.
• The extension due date for the 2025 Missouri Individual Income Tax Return is October 15, 2026.
• The Ethanol Retailer and Distributor Tax Credit, Biodiesel Retailer and Distributor Tax Credit, Food Pantry Tax Credit, and Champion for Children Tax Credit are all due April 15, 2026.

Tax Rate Changes – Indexed for Inflation

If the Missouri taxable income is...	The tax is...
$0 to $1,313	$0
Over $1,313 but not over $2,626	2.00% of excess over $1,313
Over $2,626 but not over $3,939	$26 plus 2.50% of excess over $2,626
Over $3,939 but not over $5,252	$59 plus 3.00% of excess over $3,939
Over $5,252 but not over $6,565	$98 plus 3.50% of excess over $5,252
Over $6,565 but not over $7,878	$144 plus 4.00% of excess over $6,565
Over $7,878 but not over $9,191	$197 plus 4.50% of excess over $7,878
Over $9,191	$256 plus 4.70% of excess over $9,191

Standard and Additional Standard Deduction for Individual Income Tax (with 2025 updates)

*The additional standard deduction for taxpayers over the age of 65 or blind are as follows:

• $1,600 for taxpayers claiming a filing status of married filing combined, married filing separate and qualifying widow(er) or
• $2,000 for taxpayers claiming a filing status of single and head of household.

New Income Tax Subtraction

• Capital Gains Income Tax Deduction (Section 143.121)
  • This legislation allows 100% of the income reported as capital gain for federal tax purposes can be subtracted for determining Missouri adjusted gross income. Effective on January 1, 2025. This subtraction will be effective for corporations starting January 1st of the tax year following the reduction of the individual income tax to 4.5%. The individual income tax rate for tax year 2025 is 4.7%.

New Income Tax Deductions

• Active Duty and Inactive Duty Military Deduction (Section 143.175)
  • This legislation expands the Inactive Duty Military income deduction to include signing bonuses received by the members of the National Guard or reserve components of the United State Armed Forces. Effective January 1, 2025.

Tax Credits

• Champion for Children Tax Credit (Section 135.341)
• Effective January 1, 2025, this legislation increased the amount of tax credit a taxpayer can receive from 50% of a qualified contribution to 70% of a qualified contribution, but also limited the total amount of tax credits a taxpayer can receive to $50,000 annually. Starting July 1, 2025, the annual cap on the tax credit increased from $1.5 million to $2.5 million annually.
• Youth Opportunities Tax Credit (Section 135.460)
• Effective August 28, 2025, this legislation will increase the amount of tax credit a taxpayer can received from 50% of a qualified contribution to 70% of a qualified contribution.
• Diaper Bank Tax Credit (Section 135.621)
• Legislative changes extended the sunset clause on the diaper bank tax credit to August 28, 2031.  This legislation also expands the type of diaper banks that can participate in the program.
• Maternity Home Tax Credit (Section 135.600)
• Effective August 28, 2025, this legislation limits the total amount of tax credits a taxpayer can receive to $100,000 annually.
• Homestead Disaster Tax Credit (Section 135.445)
• Effective January 1, 2025, an individual taxpayer in a presidential disaster declaration area that incurred an insurance deductible during 2025 could be eligible to receive a tax credit up to $5,000. The credit is not refundable but can be carried forward up to twenty-nine years. The amount allowed to be redeemed in the first year is $90 million, with a limit of $45 million thereafter for all taxpayers claiming the credit.
• Missouri Development Finance Board (MDFB) Infrastructure Tax Credit (Section 100.240)
• This legislation expands the current Infrastructure tax credit program to allow a taxpayer who contributes to the infrastructure development fund to receive a tax credit equal to fifty (50%) of the amount of the contribution up to the lesser of $50 million or 10% of the amount of private investment in an athletic and entertainment facility project.

Other

• Electronic Specie Currency (Section 408.010)
  • This legislation allows the Department of Revenue to accept any specie legal tender or electronic specie currency as long as the payment is in United States dollars.