Bill > SB458

This bill modifies Missouri's income tax structure with several key provisions. For tax years through 2025, the bill maintains a progressive income tax rate structure with tax rates ranging from 1.5% to 6% depending on income levels, with an interim cap of 4.95% on the top tax rate. Beginning in 2026, the bill establishes a flat 4% income tax rate for all residents. The bill also introduces a potential future tax rate reduction mechanism contingent on specific revenue conditions: if net general revenue exceeds anticipated expenditures by at least $1 million and a new tax reform fund has at least $120 million, tax rates could be reduced incrementally (0.1% for the first $120 million in the fund, and an additional 0.05% for each $60 million beyond that). Additionally, the bill modifies the federal income tax deduction for individual taxpayers, providing a percentage-based deduction tied to gross income levels through 2025, and eliminates the federal income tax deduction entirely for tax years beginning in 2026. The bill includes provisions for adjusting income tax brackets for inflation through 2025 and requires the Department of Revenue to implement and publish these changes.

Labor and Employment

https://www.senate.mo.gov/25info/BTS_Web/Bill.aspx?SessionType=R&BillID=27662