New Changes
Capital Gains Income Tax Subtraction
New legislation allows for 100% of capital gains income reported on the federal return, to be subtracted to determine the Missouri adjusted gross income. This subtraction begins January 1, 2025 for individuals.
Missouri’s Standard deductions for 2025 are as follows:
- Single - $15,750
- Married Filing Separate - $15,750
- Married Filing Combined - $31,500
- Head of Household - $23,625
- Qualified Widow(er) - $31,500
Tax Rate Changes
In 2024, Missouri adjusted their tax rates for inflation. See the new rates below.
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 |
New Credits
Homestead Disaster Tax Credit - Beginning January 1, 2025, regarding presidentially-declared disaster areas, that incurred an insurance deductible during 2025, could be eligible to receive a tax credit of up to $5000. The credit is a non-refundable credit, but it can be carried forward up to 29 years.
Champion for Children Tax Credit - Effective January 1, 2025, legislation increased the amount of tax credit a taxpayer can receive to 70% of a qualified contribution. Total amount of tax credits a taxpayer can receive was also limited to $50,000 annually. Other restrictions may apply.
Signing Bonuses for National Guard included in Military Income Deduction - This change takes affect on or after January 1, 2025.
Additional Information
Just a few of the new tax changes are included above, please see the resource below for additional information on new tax changes.