Missouri Governor Michael L. Parson signed legislation that reduced the state income tax rate.
The tax rate will be reduced from 10.25 percent to 4.95 percent beginning January 1, 2023.
Missouri's governor remarked, "While Washington politicians ignore historic inflation and skyrocketing consumer prices, we won't make the same mistake."
Mr. Parson signed two bills: SBs 3 and 5 and HB 3.
SBs 3 and 5 would focus on state income tax cuts, while HB 3 will extend critical farm tax credits for at least six years.
As a result of the modifications made by SBs 3 and 5, Missourians' income tax liability will be reduced.
The first modification will drop the top individual income tax rate from 5.2 to 4.95 percent, saving most taxpayers about 5 percent.
Additionally, the bottom income tax bracket will be eliminated, allowing citizens to earn their first $1,000 tax-free.
Residents' tax rates could be decreased to 4.8% as early as 2024, but only if state tax income improves by $175 million.