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2019 Missouri Personal Income Tax Changes Announced

2019 Missouri Personal Income Tax Changes Announced

Missouri Department of Revenue, October 2019

Tax Rates

Missouri indexed the individual income tax brackets for inflation, and for 2019, the rates are:

  • Missouri taxable income $0-$104: $0
  • $105 – $1,053: 1.5% of Missouri taxable income
  • $1,054 – $2,106: $16 plus 2.0% of excess over $1,053
  • $2,107 – $3,159: $37 plus 2.5% of excess over $2,106
  • $3,160 – $4,212: $63 plus 3.0% of excess over $3,159
  • $4,213 – $5,265: $95 plus 3.5% of excess over $4,212
  • $5,266 – $6,318: $132 plus 4.0% of excess over $5,265
  • $6,319 – $7,371: $174 plus 4.5% of excess over $6,318
  • $7,372 – $8,424: $221 plus 5.0% of excess over $7,371
  • Over $8,424: $274 plus 5.5% of excess over $8,424

Standard Deduction

Missouri’s standard deduction is based on federal amounts, and for 2019 are:

  • single: $12,200;
  • married filing combined: $24,400;
  • married filing separate: $12,200;
  • head of household: $18,350; and
  • qualified widow(er): $24,400.

Federal Tax Deduction

Starting with the 2019 tax year, Missouri limits the state tax deduction for federal taxes paid based on Missouri adjusted gross income:

  • Missouri adjusted gross income $25,000 or less: 35%
  • $25,001 to $50,000: 25%
  • $50,001 to $100,000: 15%
  • $100,001 to $125,000: 5%
  • $125,001 or more: 0%

First-Time Home Buyer Deduction

Starting with the 2019 tax year, Missouri allows a deduction for 50% of contributions to a first-time home buyer bank account. The deduction cannot exceed $800 ($1,600 for married taxpayers filing a combined return). The bank account must be established solely for the purpose of paying the expenses related to a beneficiary’s purchase of a first home. Interest accruing on the amount in the bank account is also exempt from Missouri income tax.

Federal Reserve Bank Interest Subtraction

Starting with the 2019 tax year, Missouri allows a subtraction from federal adjusted gross income for interest accrued from deposits held in a Federal Reserve Bank.

New tax credits:

  • diaper bank credit; and
  • unmet health, hunger, and hygiene needs of children in school tax credit.

Revised tax credits:

  • food pantry tax credit;
  • champion for children tax credit;
  • maternity home tax credit; and
  • pregnancy resource tax credit.

New Checkoff Contribution Options

Beginning with the 2019 tax year, taxpayers may make checkoff contributions on their returns to these new funds:

  • Kansas City Regional Law Enforcement Memorial Foundation Fund; and
  • Soldiers Memorial Military Museum in St. Louis Fund.