November 26, 2024 Missouri to lower top personal income tax rate effective January 1, 2025 Missouri Governor Michael L. Parson has announced that effective January 1, 2025, the top personal income tax rate will be lowered from 4.8% to 4.7%. This decrease is the result of legislation enacted in 2022 under SB 3 and SB 5, which allow for a potential decrease of 0.1% for each year that revenue goals are met until the top tax rate reaches 4.5%. Governor Parson stated that net general revenue collections grew by $322.6 million from fiscal year 2023 to fiscal year 2024, allowing for the reduction in Missouri's top income tax rate from 4.8% to 4.7% effective January 1, 2025. This action marks the fifth income tax cut Governor Parson has implemented during his time in office, resulting in a total 1.2 percentage point tax rate reduction (0.5 in 2019, 0.1 in 2022, 0.35 in 2023, 0.15 in 2024 and 0.1 in 2025). Supplemental wages The rate of withholding on bonuses, equity compensation and other irregular payments will be lowered from 4.8% to 4.7% effective January 1, 2025. The 2025 withholding tables and computer formula, once available, will be published here. (2024 Missouri Employer's Tax Guide, p.5.)
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