Missouri’s tax rates are poised to head downward.
As part of a 2014 law approved by Missouri’s Republican-led Legislature, the state’s top personal income tax rate is positioned to drop to 5.9 percent from its current 6 percent beginning with taxes paid in 2018. It will drop to 5.5 percent over the next five years. There also will be a new 25 percent deduction on business income reported on individual returns.
The plan also would update the state’s tax brackets, which haven’t been changed since 1931, and increase by $500 the personal deduction for individuals with gross income below $20,000.
The decrease appears to have been triggered on Friday, the final day of the state’s fiscal year. As part of the 2014 law, the cuts would only go into effect if state tax revenues reached a specific threshold.
The governor’s budget office would not confirm Monday that the threshold was met, citing the long July Fourth holiday weekend. Tabulations are expected to be completed Wednesday.
Read more: St. Louis Post-Dispatch