Bill > HB100

This bill modifies Missouri's income tax provisions, primarily focusing on tax rates and deductions through the year 2025, with significant changes taking effect in 2026. For tax years from 2023 to 2025, the bill maintains a progressive tax rate structure with rates ranging from 1.5% to 4.95% based on taxable income, and includes provisions for annual inflation adjustments to income tax brackets. Starting in 2026, the bill establishes a flat 4% tax rate for all residents. The bill also introduces a potential future tax rate reduction mechanism tied to a new "tax reform fund," where reductions of 0.1% to 0.2% could occur if certain revenue conditions are met. For federal income tax deductions, the bill maintains a sliding scale percentage deduction for individual taxpayers based on gross income through 2025, with corporate taxpayers allowed a 50% federal tax liability deduction. Notably, from 2026 onward, the bill eliminates the federal income tax deduction for both individual and corporate taxpayers. These changes aim to simplify the state's tax structure and potentially provide tax relief for residents.

Budget and Finance

https://house.mo.gov/Bill.aspx?bill=HB100&year=2025&code=R