Bill > HB421

This bill proposes a state income tax exemption for certain Missouri state employees whose state wages or salary are at or below six hundred percent of the federal poverty guidelines. The bill defines key terms, including "federal poverty guidelines" (updated annually by the U.S. Department of Health and Human Services), "state employee" (full-time or part-time workers employed by the state of Missouri, excluding elected officials, contractors, and commissioned workers), and "qualified state employee income" (wages or salaries from state employment up to the specified poverty guideline threshold). Beginning January 1, 2026, state employees meeting these criteria would be exempt from state income tax on their qualifying state employment wages, with any income exceeding the threshold remaining taxable. The exemption would be applied before other legal deductions when calculating Missouri adjusted gross income, and the Department of Revenue is authorized to create regulations to implement this tax exemption. The bill aims to provide tax relief for lower-income state employees by reducing their state tax burden.

https://house.mo.gov/Bill.aspx?bill=HB421&year=2025&code=R