Missouri Income Tax Elimination: What Voters Need to Know
Missouri is debating whether to move toward eliminating the state income tax. That is a big idea, and voters deserve a clear explanation of what it means, how it could work, and why so many Missourians believe it is worth pursuing.
Right now, Missouri still taxes individual income. The state’s 2026 Missouri Withholding Tax Formula shows the current structure that workers and employers are still dealing with today.
For supporters, the basic argument is simple. Missouri should stop punishing work, reward growth, and become more competitive with the states that are already attracting families, jobs, and investment with lower tax burdens. That does not mean change happens overnight. It means Missouri should have a responsible path toward a better tax code.
What Is Missouri’s Income Tax?
Missouri currently imposes a state individual income tax with a top rate of 4.7 percent.
What Does Income Tax Elimination Mean?
Income tax elimination does not mean flipping a switch tomorrow and hoping for the best. The proposal being debated in Jefferson City is about creating a framework for future tax reform.
HJR 173’s official summary says that if revenue triggers established by law are met and the top individual income tax rate falls below 1.4 percent, no state individual income tax would be imposed beginning January 1, 2031. he amendment would authorize legislation expanding state and local sales and use taxes on goods or services for the purpose of reducing and eliminating the resident individual income tax.
Why Missouri Should Eliminate the Income Tax
Eliminating the income tax would let families keep more of what they earn, make the state more attractive for investment, and send a clear signal that Missouri wants to compete and win.
Tax structure matters.
Missouri ranks 12th overall on the 2026 State Tax Competitiveness Index. All five of the most competitive states have no individual income tax.
Missouri Is Competing with Other States
Missouri does not compete in a vacuum. It competes with other states for workers, entrepreneurs, retirees, and employers.
Academic research points in the same direction. Migration flows among highly productive workers are sensitive to changes in top marginal tax rates and that state taxes have a significant effect on geographic location decisions. Taxes aren’t the only factor but they are a big one.
It’s easier for families, businesses, and capital to move across state lines than ever before.
Missouri’s Plan To Phase Out the Income Tax Responsibly
The reduction and elimination of the individual income tax would happen only after applying revenue triggers, and notes that the proposal would not allow elimination of the tax until some point after January 1, 2031.
The proposal would not itself eliminate the income tax or increase the sales tax immediately, but would ask voters whether to allow lawmakers to adjust the tax code, lower income taxes, and broaden the sales tax base in equal proportion.
Frequently Asked Questions
Would Eliminating the Income Tax Happen All at Once?
No. The official proposal language and fiscal note both describe a process tied to triggers and future legislative action, not a one-day repeal.
Would Missouri Need to Replace the Revenue?
Yes. The proposal would grant broader sales and use tax authority to the General Assembly as part of a path toward income tax elimination. Following economic research, the Governor and Conservatives in Jefferson City support a broadening of the sales tax to close loopholes and include services.
Related Reading
- – Why Missouri Should Eliminate The Income Tax in 2026
- – Missouri Income Tax Elimination and HJR 174 Explained
- – Missouri Income Tax Elimination: Compete or Get Left Behind
- – Missouri Income Tax Elimination: Competing for People
- – Missouri’s Income Tax Problem Isn’t What You Think
- – Missouri’s Neighbors Are Growing Faster. Why?
- – Eliminate Missouri Income Tax for Economic Growth
- – Why Missouri Should Join the No-Income Tax Revolution
Call to Action
If you believe Missouri should move toward a simpler, more competitive, more pro-growth tax code, now is the time to pay attention, learn the facts, and tell your lawmakers where you stand.