Bill > HB2754

This bill modifies Missouri's income tax provisions, primarily by adjusting tax rates and deductions over time. For tax years beginning on or before December 31, 2026, the bill maintains the current tax structure but includes a temporary reduction in the top tax rate to 4.95% for tax years beginning between January 1, 2023, and December 31, 2026. Starting January 1, 2027, a flat tax rate of 4.7% will be implemented, with provisions for further gradual reductions of one-tenth of a percent annually, contingent on exceeding specific net general revenue collection thresholds. Additionally, for tax years beginning on or after January 1, 2027, the Missouri standard deduction will increase by $4,000 above the federal standard deduction. The bill also introduces a new section (143.512) stating that taxpayers will not be liable for penalties or interest on a balance due if it arises from a denied tax credit due to insufficient funds, provided the balance is paid or payment arrangements are made within sixty days of the denial notice. The bill repeals the "Missouri Working Family Tax Credit Act" which provided a credit based on the federal earned income tax credit.

https://house.mo.gov/Bill.aspx?bill=HB2754&year=2026&code=R