Missouri Governor Michael L. Parson has signed legislation that reduces the top rate of individual income tax with the possibility of further reductions if state revenues meet or exceed certain thresholds and exempts taxpayers’ first $1,000 of income from taxation. (L. 2022, S3 (1st Extra. Sess.), applicable to tax years beginning on or after 01/01/2023.)
2023 calendar year.
The legislation repeals all currently scheduled rate reductions and, applicable to tax years beginning on or after January 1, 2023, reduces the top rate of individual income tax from 5.3% to 4.95%.
2024 calendar year.
Beginning with the 2024 calendar year, the top rate of tax may be reduced by 0.15% to 4.8% if the amount of net general revenue collected in the previous fiscal year exceeds the highest amount of net general revenue collected in any of the three fiscal years prior to such fiscal year by at least $175 million.