Missouri’s Standard deduction amount is now equal to the Federal Standard deduction amounts.
- Single or Married Filing Separate - $12,950
- Married Filing Combined - $25,900
- Head of Household - $19,400
- Qualified Widow(er) - $25,900
Tax Rate Changes
In 2021, Missouri adjusted their tax rates for inflation. See the new rates below.
|
If the Missouri taxable income is: |
The tax is: |
|
$0 to $111 |
$0 |
|
At least $112 but not over $1,121 |
1.5% of the Missouri taxable income |
|
Over $1,121 but not over $2,242 |
$17 plus 2.0% of excess over $1,121 |
|
Over $2,242 but not over $3,363 |
$39 plus 2.5% of excess over $2,242 |
|
Over $3,363 but not over $4,484 |
$67 plus 3.0% of excess over $3,363 |
| Over $4,484 but not over $5,605 |
$101 plus 3.5% of excess over $4,484 |
| Over $5,605 but not over $6,726 |
$140 plus 4.0% of excess over $5,605 |
| Over $6,726 but not over $7,847 |
$185 plus 4.5% of excess over $6,726 |
| Over $7,847 but not over $8,968 |
$235 plus 5.0% of excess over $7,847 |
| Over $8,968 |
$291 plus 5.3% of excess over $8,968 |
New Subtraction from Federal Adjusted Gross Income
The Employee Stock Ownership Plan subtraction is no longer available on 2022 returns.
New Income Tax Deductions
Foster Parent Tax Deduction:
- Beginning with tax year 2022, a taxpayer can claim a deduction for eligible expenses directly incurred for providing care as a foster parent to one or more children in Missouri.
- To qualify for the full deduction, the taxpayer must provide foster care for at least 6 months; these do not have to be consecutive days but must add up to the amount of 183 days (6 months). If less than 183 days the amount of the deduction will be reduced on a pro rata basis.
- An affidavit (Form 5870) must be supplied to verify the taxpayer is a foster parent.
- Married Filing Combined, Qualifying Widow(er), Single, and Head of Household maximum deduction is $5,000.
- Married Filing Separate maximum deduction is $2,500.
Business Income Tax Deduction:
The business income tax deduction has increased to 15%.
Filing Status Exemption Deduction:
Taxpayers who file as Head of Household or Qualifying Widow(er) qualify for an additional $1,400 exemption.
Changes to Tax Credits
According to the Missouri Department of Revenue, the following credits have changed:
Adoption Tax Credit
- Expands the current qualification rules for the adoption tax credit beginning with adoptions on or after January 1, 2022. The ATC now applies to any person residing in the state who proceeds in good faith with the adoption of a child, regardless of whether the child is special needs.
- Priority will be given to ATC applications claiming a credit for special needs children who are residents or wards of residents of this state.
- The cumulative amount of ATC that may be claimed by all taxpayers in a fiscal year may not exceed six million dollars.
Self-Employment Health Insurance Tax Credit
- The SHC is limited to the taxpayer’s tax liability and is no longer refundable.
- To be eligible for the SHC, each self-employed taxpayer shall have a Missouri tax liability, before any other credits, of less than $3,000. The SHC cannot be carried forward or back.
Missouri Empowerment Scholarship Tax Credit
- A taxpayer who makes a qualifying contribution to an educational assistance organization after August 28, 2021, may claim a credit against the tax.
- The credit cannot exceed 50% of the tax liability.
- The tax credit is nonrefundable, it cannot be sold, transferred or assigned. The credit can be carried forward for 4 years.
- The tax credit will be certified by the State Treasurer’s Office. The cumulative amount of credit allocated per calendar year shall not exceed $50 million (cap adjusted annually by STO based on urban consumer’s price index up to $75 million)
You can read more about Missouri's tax law changes here.