Bill > SB1237

This bill modifies Missouri's income tax structure, primarily by establishing a gradual transition to a 4% flat income tax rate by 2027. Currently, Missouri has a progressive tax system with rates ranging from 1.5% to 6% based on income levels. For tax years 2023-2026, the top tax rate will be capped at 4.95%, with annual income brackets adjusted for inflation. Starting January 1, 2027, the state will implement a uniform 4% flat tax rate for all taxpayers. The bill also includes provisions for potential future tax rate reductions contingent on specific net general revenue collection thresholds. These future reductions would occur in increments of 0.1 percentage points, with no more than one reduction per calendar year. Additionally, the bill modifies the federal income tax deduction rules, gradually phasing out the deduction by the end of 2026, with no federal income tax deduction allowed for individual or corporate taxpayers beginning in 2027. The legislation aims to simplify the state's tax structure and potentially provide tax relief for residents.

Labor and Employment

https://www.senate.mo.gov/26info/BTS_Web/Bill.aspx?SessionType=R&BillID=340