Personal Finance
in Missouri
Everything Missouri residents need to know — state taxes, best savings rates, housing market, retirement rules, and money-saving strategies specific to MO.
Missouri has a graduated income tax with rates from 2% to 4.7%, with the top rate applying to income over ~$9,191. The top rate has been steadily declining and may continue to fall if revenue triggers are met. Missouri is one of the few states that lets you deduct federal income tax paid on your state return (up to $5,000 single / $10,000 married), effectively lowering your state tax burden.
HYSA interest is taxed as ordinary income at both federal and Missouri state rates. Your effective after-tax HYSA yield in Missouri is approximately ~3.26% on a 4.50% APY account.
| Account Type | Best APY | After Tax (MO) | Best For |
|---|---|---|---|
| High-Yield Savings (HYSA) | 4.50% | ~3.26% | Emergency fund, short-term savings |
| 6-Month CD | 4.80% | ~3.46% | Money not needed for 6 months |
| I Bonds | Variable | State tax exempt | Inflation hedge; 1-year lockup |
| Roth IRA | ~7% long-term | 100% tax-free | Retirement savings |
Missouri offers highly affordable housing. Kansas City metro median home prices range from $250,000–$310,000, while St. Louis metro ranges $200,000–$270,000. Smaller cities like Springfield, Columbia, and Joplin offer $170,000–$230,000 medians. Housing costs are 15–25% below the national average.
Down payment assistance: Missouri Housing Development Commission (MHDC) offers the First Place Loan Program with below-market rates and down payment assistance up to 4% of the loan amount for first-time buyers.
Missouri fully exempts Social Security benefits for residents age 62+ or disabled. For those under 62, the maximum Social Security deduction is $47,633 for 2025. Military retirement pay is fully exempt. Other pension and retirement income up to $6,000 can be excluded for qualifying seniors (age 62+, income limits apply). Missouri has no estate or inheritance tax.