Missouri income tax deductions can shave a meaningful amount off what you owe the state, and for 2026 the math got simpler: a flat 4.7% rate applies to every dollar of taxable income, so each dollar you subtract through a deduction or exemption saves you 4.7 cents.1Missouri House of Representatives. HB 798 – Income Tax Summary The state offers a higher standard deduction than the federal one, a partial deduction for the federal income tax you pay, generous exemptions for Social Security and pension income, subtractions for 529 and ABLE savings, and a full deduction for military pay. A few smaller credits round out the picture.
The Standard Deduction and Whether to Itemize
HB 798 raised Missouri’s standard deduction to $4,000 above the federal amount for every filing status. With the 2026 federal figures of $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household, the Missouri standard deduction lands at roughly $20,100, $36,200, and $28,150 respectively.2Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026 You claim it automatically on Form MO-1040, no receipts required.3Missouri Revisor of Statutes. Missouri Code 143.131 – Missouri Standard Deduction, When Used, Amount
A common misunderstanding is that itemizing federally forces you to itemize on your state return. Missouri law says you “may elect” to itemize for state purposes when you itemize federally; you aren’t required to.4Missouri Revisor of Statutes. Missouri Code 143.141 – Itemized Deductions, When Authorized, How Computed If your federal itemized total is only slightly above the federal standard, the Missouri standard deduction (with its extra $4,000) will often produce a lower state tax bill. Calculate both ways if you’re close. Missouri itemized deductions otherwise track the federal ones: mortgage interest, charitable contributions, and state and local taxes paid.
The Federal Income Tax Deduction
This is the deduction that sets Missouri apart from almost every other state. You can subtract a portion of your federal income tax liability from your Missouri taxable income.5Missouri Revisor of Statutes. Missouri Code 143.171 – Federal Income Tax Deduction, Amount, Corporate and Individual Taxpayers The base is what you actually owe federally after most credits, not what was withheld from your paycheck.
The percentage you get to deduct slides down as your income rises. Missouri applies these brackets to the total gross income on the return regardless of filing status:
- $25,000 or less: 35% of federal tax liability
- $25,001 to $50,000: 25%
- $50,001 to $100,000: 15%
- $100,001 to $125,000: 5%
- Over $125,000: nothing
The deduction is capped at $5,000 on a single return and $10,000 on a combined return.5Missouri Revisor of Statutes. Missouri Code 143.171 – Federal Income Tax Deduction, Amount, Corporate and Individual Taxpayers Because the same thresholds apply to a joint filer’s combined income, this benefit is largely a lower- and middle-income one. If a couple’s combined gross income clears $125,000, the deduction is zero.
Social Security and Pension Exemptions
Social Security
Missouri fully exempts Social Security benefits from state income tax beginning with the 2024 tax year. If you’re 62 or older, or you receive Social Security Disability, you subtract 100% of the benefits included in your federal adjusted gross income. Income limits and phase-outs that once applied are gone.6Missouri Revisor of Statutes. Missouri Code 143.125 – Social Security Benefits Income Tax Exemption
Public Pensions
Payments from state retirement systems, federal government pensions, and pensions from other states or their subdivisions receive similar treatment. The prior income cap has been removed, and eligible retirees can subtract public retirement benefits up to the maximum Social Security benefit amount for the year, as long as those benefits are in your federal adjusted gross income.7Missouri Department of Revenue. Pension Tax Year 2024 FAQs One coordination rule: if you also claim the Social Security exemption, your public pension subtraction is reduced dollar-for-dollar by the Social Security amount already deducted.
Private Pensions, 401(k)s, and IRAs
Retirement income from private sources (401(k) plans, traditional IRAs, Keogh plans, deferred compensation plans, and private pension annuities, but not Roth IRAs) qualifies for a separate subtraction of up to $6,000 per taxpayer.8Missouri Revisor of Statutes. Missouri Code 143.124 – Pensions, Retirement Benefits, Amounts Subtracted From Missouri Adjusted Gross Income Unlike Social Security and public pensions, this one still has income ceilings. You get the full $6,000 if your Missouri adjusted gross income is below:
- Single, head of household, or qualifying widow(er): $25,000
- Married filing combined: $32,000
- Married filing separately: $16,000
Above those ceilings, the exemption phases out at one dollar for every dollar over the threshold. A single filer with Missouri AGI of $31,000 would lose the entire $6,000.8Missouri Revisor of Statutes. Missouri Code 143.124 – Pensions, Retirement Benefits, Amounts Subtracted From Missouri Adjusted Gross Income
Education and Disability Savings
MOST 529 Contributions
Contributions to the Missouri Education Savings Program (MOST 529) and any other qualified 529 tuition program are deductible up to $8,000 per taxpayer, or $16,000 for married couples filing jointly.9Missouri Revisor of Statutes. Missouri Code 166.435 – State Tax Exemption Earnings then grow free of Missouri income tax if the money is used for qualified education expenses. Withdraw for something else and the previously deducted contributions plus earnings get added back to your Missouri AGI; federal rules may also add a 10% penalty on the earnings portion.
ABLE Accounts
Contributions to a Missouri ABLE account, which lets families save for disability-related expenses, are deductible on the same schedule: up to $8,000 for single filers and $16,000 for joint filers.10Missouri Revisor of Statutes. Missouri Code 209.625 – ABLE Program Tax Provisions Distributions not used for qualified disability expenses trigger the same recapture of the deducted amount.
Military Pay
Active Duty
Missouri exempts 100% of active duty military pay from state income tax. If you serve on the active duty component of the Armed Forces and your military compensation is in your federal adjusted gross income, subtract the full amount on your Missouri return.11Missouri Revisor of Statutes. Missouri Code 143.174 – Tax Deduction for Compensation Received as an Active Duty Military Member Make sure the pay is properly identified on your W-2 so it flows to the state return.
National Guard and Reserve
A separate deduction covers income from National Guard inactive duty training, National Guard annual training, and Reserve component service. Beginning with 2024, 100% of that income is deductible.12Missouri Department of Revenue. Military Information Starting in 2025, bonuses from the National Guard or Reserve, whether for joining, reenlisting, or any other reason, also qualify.13Missouri Revisor of Statutes. Missouri Code 143.175 – Military Personnel, Reserves and Inactive Duty Training, Deduction, Amount Civilian federal service pay does not qualify, even if a uniform is involved.
Military Spouses
Under the federal Military Spouses Residency Relief Act and the Veterans Auto and Education Improvement Act of 2022, the civilian spouse of a servicemember may elect to use the servicemember’s state of legal residence for state tax purposes. If your spouse is stationed in Missouri but you both claim residency elsewhere, your Missouri wages aren’t taxed by Missouri. Include proof of the other state’s residency, such as a copy of that state’s income tax return or the servicemember’s state driver’s license, with your Missouri filing.12Missouri Department of Revenue. Military Information
Health-Related Deductions and Credits
Health Care Sharing Ministry Payments
If you belong to a health care sharing ministry and your monthly contributions weren’t deducted federally, subtract those payments from your Missouri adjusted gross income.14Missouri Revisor of Statutes. Missouri Code 143.118 – Health Care Sharing Ministry Deduction Only the portion you didn’t claim federally qualifies.
Self-Employed Health Insurance Credit
Self-employed taxpayers who couldn’t fully deduct their health insurance premiums on the federal return may claim a Missouri credit equal to the additional federal tax caused by including those undeducted premiums in federal AGI. It’s available when your Missouri tax liability before other credits is under $3,000, and you claim it on Form MO-SHC.15Missouri Department of Revenue. Self-Employed Health Insurance Tax Credit Because this is a credit rather than a deduction, it comes off your tax bill directly.
Long-Term Care Insurance Credit
Missouri also offers a credit for long-term care insurance premiums under Section 135.096. Like the self-employed credit, it reduces tax owed rather than lowering taxable income. Premiums must be ones you didn’t deduct federally.
Public Safety Officer Surviving Spouse Credit
Surviving spouses of public safety officers killed in the line of duty may claim a credit against Missouri income tax under Section 135.090.16Missouri Department of Revenue. Public Safety Officer Surviving Spouse (SSC) Tax Credit It’s a credit, not a deduction, so it directly offsets the tax owed. Eligibility depends on the circumstances of the officer’s death.
Federal Deductions Missouri Does Not Follow
Several new federal deductions created by the One Big Beautiful Bill apply only on your federal return. The provisions for tips, overtime pay, car loan interest, and the enhanced deduction for seniors have no counterpart in Missouri statute, so they will not reduce your Missouri taxable income.17Missouri Department of Revenue. Individual Income Tax Year Changes Claim them federally, but don’t expect them to flow through to your state return.
Where to Claim These on the Forms
Missouri deductions and subtractions are claimed on Form MO-1040 along with Form MO-A, which handles adjustments. Start from the federal adjusted gross income shown on your completed federal Form 1040, then apply Missouri-specific additions and subtractions on Form MO-A to arrive at your Missouri taxable income. Pension and Social Security exemptions have their own section on Form MO-A (Part 3, Section D).18Missouri Department of Revenue. 2025 Individual Income Tax Return – Long Form The federal income tax deduction, MOST 529 contributions, ABLE contributions, military pay, and the health care sharing ministry subtraction all appear as adjustments on MO-A as well; the self-employed health insurance credit, long-term care credit, and surviving spouse credit are claimed on their own credit forms and flow to the credit section of MO-1040.