October 17, 2018

Missouri: Who Pays? 6th Edition

MISSOURI

MISSOURI STATE AND LOCAL TAXES

Taxes as Share of Family Income

					Top 20%
Income Group	Lowest 20%	Second 20%	Middle 20%	Fourth 20%	Next 15%	Next 4%	Top 1%
Income Range	Less than $17,800	$17,800 to $34,100	$34,100 to $55,200	$55,200 to $93,100	$93,100 to $187,300	$187,300 to $447,300	over $447,300
Average Income	$10,500	$25,000	$43,500	$72,800	$125,600	$266,300	$1,222,900
Sales & Excise Taxes	5.9%	5.2%	4.3%	3.6%	2.6%	1.7%	0.9%
General Sales – Individuals	3.6%	3.3%	2.8%	2.5%	1.8%	1.2%	0.6%
Other Sales & Excise – Ind.	0.6%	0.5%	0.3%	0.3%	0.2%	0.1%	0.0%
Sales & Excise on Business	1.7%	1.5%	1.1%	0.9%	0.6%	0.4%	0.2%
Property Taxes	3.6%	2.2%	2.2%	2.5%	2.2%	2.1%	1.1%
Home, Rent, Car – Ind.	3.5%	2.1%	2.2%	2.4%	2.1%	1.8%	0.4%
Other Property Taxes	0.1%	0.1%	0.1%	0.1%	0.1%	0.3%	0.7%
Income Taxes	0.4%	1.5%	2.6%	3.1%	3.9%	4.0%	4.2%
Personal Income Tax	0.3%	1.4%	2.5%	3.1%	3.8%	3.9%	4.2%
Corporate Income Tax	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.1%
TOTAL TAXES	9.9%	8.8%	9.0%	9.2%	8.7%	7.8%	6.2%

Individual figures may not sum to totals due to rounding. Download the table

TAX FEATURES DRIVING THE DATA in Missouri

Progressive Features	Regressive Features
Graduated personal income tax structure; however, top rate kicks in at $8,000 so virtually flat	Provides an income tax deduction for federal income taxes paid State sales tax base includes groceries, though taxed at a lower rate Local sales tax bases include groceries Fails to provide refundable income tax credits to offset sales, excise, and property taxes Allows income tax exclusion for pass-through business income Fails to use combined reporting as part of its corporate income tax Does not levy a tax on estates or inheritances

Progressive Features

Regressive Features

Graduated personal income tax structure; however, top rate kicks in at $8,000 so virtually flat

Provides an income tax deduction for federal income taxes paid
State sales tax base includes groceries, though taxed at a lower rate
Local sales tax bases include groceries
Fails to provide refundable income tax credits to offset sales, excise, and property taxes
Allows income tax exclusion for pass-through business income
Fails to use combined reporting as part of its corporate income tax
Does not levy a tax on estates or inheritances

ITEP Tax Inequality Index

According to ITEP’s Tax Inequality Index, which measures the impact of each state’s tax system on income inequality, Missouri has the 28th most unfair state and local tax system in the country. Incomes are more unequal in Missouri after state and local taxes are collected than before. (See Appendix B for state-by-state rankings and the methodology section for additional detail on the index.)

Note: Figures show permanent law in Missouri enacted through September 10, 2018, at 2015 income levels, which includes tax cuts enacted and triggered to date but does not include the impact of tax cuts dependent on future triggers. Top figure represents total state and local taxes as a share of non-elderly income. The sixth edition of Who Pays does not include the impact of the federal deduction for state and local taxes (SALT) because policy changes in the 2017 federal Tax Cuts and Jobs Act temporarily limited the extent to which the SALT deduction functions as a generalized offset of state and local taxes.