Institute on Taxation and Economic Policy (ITEP)

Missouri

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State Earned Income Tax Credits Will Support Families and Workers in 2027

• By Neva Butkus

Nearly two-thirds of states (plus the District of Columbia and Puerto Rico) have an Earned Income Tax Credit. These credits boost low-paid workers’ incomes and offset some of the taxes they pay, helping working class families achieve greater economic security.

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State Rundown 8/13: Income Tax Elimination Fails in Missouri

• By ITEP Staff

In a win for Missouri workers and families, voters overwhelmingly rejected a proposed amendment that would have allowed lawmakers to replace the state's income tax with increased or expanded sales taxes.

St. Louis Post-Dispatch: After Missouri Voters Reject Income Tax Plan, Governor Says He’ll Still Work to Cut Taxes

August 7, 2026

Voters overwhelmingly rejected a proposed constitutional amendment Tuesday that would have triggered the phase-out of the state’s income tax by giving lawmakers the ability to raise sales and services taxes.

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Missouri Voters Reject Amendment 5 and a Damaging Tax Shift onto Working Families

• By Eli Byerly-Duke, Jon Whiten

Yesterday Missouri voters rejected Amendment 5, declining to give lawmakers a blank check to raise or expand sales taxes, something some lawmakers sought to enable enormous income tax cuts for the state’s wealthiest households.

CBS Missouri: What would eliminating income tax mean for Missourians?

July 30, 2026

"The state isn't going to raise any money, but that doesn't mean it's going to be net neutral for each person," Eli Byerly-Duke, a state policy analyst at the Institute on Taxation and Economic Policy, said.

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State Rundown 7/29: The Misguided, Miserly Missouri Amendment to Eliminate the Income Tax

• By ITEP Staff

Missouri voters are facing a major decision at the ballot box next week on Amendment 5, which would amend the state constitution to allow lawmakers to eliminate the individual income tax and expand the state’s sales tax on any good or service to make up for lost revenue.

Center on Budget and Policy Priorities: Missouri Tax Amendment Likely to Seriously Harm Services, Shift Taxes Onto Working Families

• By ITEP Staff

In early August, Missouri voters will decide one of the most consequential state tax policy questions in recent memory: whether to eliminate their state’s personal income tax.

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Missouri’s Amendment 5 Would Cut Taxes for the Rich and Raise Taxes on Seniors and the Middle Class

• By Eli Byerly-Duke

On August 4, Missouri voters will vote on whether to increase taxes on the middle class and seniors to fund tax cuts for the richest households in the state.

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State-by-State Tax Expenditure Reports

• By ITEP Staff

Below is a list of tax expenditure reports published in the states.

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State Rundown 6/4: Fiscal Flowers and Weeds Bloom in June

• By ITEP Staff

A veritable superbloom of tax and budget policies occurred over these last few weeks, including both flowers worth admiring and weeds worth fighting back.

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State Rundown 4/23: While Some States Stop Digging, Others Move Full Steam Ahead with Anti-Affordability Agendas

• By ITEP Staff

Missouri lawmakers passed legislation that will have residents vote on a proposal at the ballot box. The ask: for them to pay more in sales taxes to offset cuts – and the possible elimination – of the state's individual income tax, which makes up nearly two-thirds of Missouri’s general fund.

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State Rundown 4/8: Budget and Tax Packages Take Shape as Sine Die Approaches in Many States

• By ITEP Staff

State legislative sessions are wrapping up, and final tax and budget packages are making their way to governors’ desks.

State Tax Watch 2026

• By ITEP Staff

ITEP tracks tax discussions in legislatures across the country and uses our unique data capacity to analyze the revenue, distributional, and racial and ethnic impacts of many of these proposals. State Tax Watch offers the latest news and movement from each state.

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State Rundown 3/26: Sobering Revenue Projections Keep States on Their Toes

• By ITEP Staff

This week, troubling revenue projections are making headlines, with many lawmakers scrambling to determine how the tax changes at the federal level, plus price hikes driven by national policy decisions, will impact their states.

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States Like Missouri Are Seeking to Raise Taxes on the Working Class to Cut Taxes for the Rich

• By Eli Byerly-Duke

A proposal to replace the Missouri personal income tax with a higher sales tax would increase costs for low- and middle-income households while giving the richest Missourians an average annual tax cut of almost $40,000.

Stateline: Republican Push To Increase Sales Taxes Would Fall Hardest on Lower-Income Residents

March 19, 2026

Lawmakers consider increasing sales taxes to offset budget cuts to property or income taxes. This will force lower- and middle-income residents, who spend a larger share of their earnings than the wealthy, to foot more of the bill for state services. Read more.

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State Rundown 3/12: Washington Lawmakers Pass Millionaires’ Tax, Expand Working Families Tax Credit

• By ITEP Staff

Washington is on its way to making history after the legislature approved the “millionaires’ tax,” a 9.9 percent tax on income over $1 million. The bill, which is expected to raise more than $3 billion a year, making significant investments in public education and childcare, will also expand the Working Families Tax Credit – the […]

Springfield News-Leader: Property Tax Caps on April Ballot in Several Counties Worry Districts

March 5, 2026

Rita Jefferson, local analyst at the Institute on Taxation and Economic Policy, said this approach fails to get at the root problem. She said generally, property tax growth caps are done on a state-wide level, rather than county by county, and she called the 0% tax cap “extremely unusual.” Read more.  

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State Rundown 3/4: Budget Realities Set In

• By ITEP Staff

As many state legislative sessions near or cross the halfway point, lawmakers are facing tough choices.

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State Rundown 2/25: Sausage-Making Season Is Upon Us

• By ITEP Staff

National Sausage Month isn’t until October, but now is the time of year when state lawmakers are really diving into their sausage-making processes, as separate legislative houses and oftentimes political parties send competing bills, budgets, and visions back and forth to grind out their differences.

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State Rundown 2/19: Necktie (NCTI) Offers a Way Out of a Knotty Situation

• By ITEP Staff

State lawmakers are grappling with a range of challenges as their fiscal outlooks deteriorate, federal tax enforcement wanes (after the Trump administration cut the IRS workforce by 25 percent), and a rewritten federal tax code sends states scrambling to decide what changes they might want to make in their own codes.

KCUR: Eliminating Missouri’s Income Tax Could Actually Cost You More — Unless You’re Rich

February 19, 2026

If the state’s income tax is eliminated, experts anticipate that Missouri’s already regressive tax system would become more so. Households with a yearly income of $65,000 would see a $500 tax increase each year, while households in the top 1% would see an average tax cut of nearly $40,000. Read more.

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What Did 2025 State Tax Changes Mean for Racial and Economic Equity?

• By Brakeyshia Samms

The results are a mixed bag, with some states enacting promising policies that will improve tax equity and others going in the opposite direction.

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State Rundown 1/28: State Tax Cutting Plans Face Scrutiny

• By ITEP Staff

As state legislative sessions ramp up across the country, property taxes are one of many issues dominating tax policy conversations in statehouses.

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State Rundown 1/14: New Year Brings New Resolutions for Funding Key Priorities

• By ITEP Staff

State governors are beginning to lay out their top priorities as legislatures reconvene in statehouses around the country.