Bill > HB2575

This bill modifies Missouri's income tax structure by implementing a phased approach to tax rate reductions. From 2023 to 2026, the top income tax rate will be 4.95%, with a progressive tax table ranging from 1.5% to 6% depending on income levels. Starting in 2027, the tax rate will be 4.7% or the top rate in effect on January 1, 2027, whichever is less. The bill allows for additional future rate reductions of 0.15% starting in 2024, with no cap on the number of reductions, potentially reducing the personal income tax rate to zero percent. These rate reductions can only occur if net general revenue collected exceeds previous fiscal years by specific thresholds. The bill also adjusts income tax brackets annually based on inflation and modifies standard deduction calculations, increasing the standard deduction by $4,000 starting in 2027. Additionally, the bill removes previous provisions related to the Missouri Working Family Tax Credit. The legislation aims to gradually lower the state's income tax burden while ensuring sufficient state revenue.

https://house.mo.gov/Bill.aspx?bill=HB2575&year=2026&code=R