Taxpayers to Benefit from Historic Tax Cuts

With a new tax season underway, the Missouri Department of Revenue is encouraging Missouri income tax filers to review important individual income tax changes effective for the 2022 tax year. Before filing, filers may refer to the DOR’s “What’s New?” resource on www.dor.mo.gov for details on changes to the Missouri standard deduction, the new deductions and credits available and more.

While filers are preparing to file their 2022 tax returns, it’s also important to plan ahead for next year. Under Governor Parson’s historic tax cut legislation that was signed into law in October 2022, nearly all Missouri filers will pay tax at a lower rate in 2023.

Senate Bills 3 & 5 made several changes to income tax laws in the state of Missouri, including:

Reducing the top individual income tax rate from 5.2 to 4.95%;

Eliminating the bottom income tax bracket, allowing Missourians to earn their first $1,000 tax free;

Allowing an additional 0.15% top income tax rate reduction to 4.8% when net general revenues increase by $175 million;

Eliminating income taxes for individuals making less than $13,000 a year and couples making less than $26,000; and

Allowing three additional 0.1% top income tax rate reductions in future years when net general revenue increases by $200 million, adjusted for inflation.

KPGZ News - Brian Watts contributed to this story