How retirement income is taxed
in Missouri
Missouri taxes retirement income at progressive rates up to 4.7%. Here's what that means for your retirement plan and how to manage it.
Missouri's retirement
tax landscape
Social Security is fully exempt. Pensions get a $6,000/$12,000 exclusion.
Understanding how Missouri treats each type of retirement income is essential for planning your withdrawals, conversions, and Social Security timing. The interaction between state and federal taxes determines your true after-tax income each year.
What's taxed
and what's not
Here's how Missouri treats the major types of retirement income.
Fully exempt from state income tax.
Fully taxable as ordinary income.
Partially exempt or exempt with age requirements.
Qualified distributions are fully exempt at both the state and federal level.
Missouri's
tax brackets
Missouri uses progressive tax brackets with a top rate of 4.7%. For single filers: 0% up to $1,313, 2% to $2,626, 2.5% to $3,939, 3% to $5,252, 3.5% to $6,565, 4% to $7,878, 4.2% to $9,191, 4.7% above $9,191 (single). The standard deduction is $15,750 for single filers and $31,500 for married filing jointly.
Missouri's top rate of 4.7% kicks in at just $9,191 of taxable income — effectively a near-flat tax for most retirees.
Progressive rates mean each dollar is taxed at its own bracket rate. The marginal rate on the next dollar matters most for planning.
$15,750 single / $31,500 married filing jointly. Income below this threshold is tax-free at the state level.
Strategies to reduce your
Missouri tax burden
Roth conversions before retirement can avoid the higher state brackets. The generous standard deduction ($15,750/$31,500) shelters significant income. The SS exemption is a strong advantage for retirees. Federal tax planning — withdrawal sequencing and SS timing — drives the primary savings opportunity.
Roth conversions before retirement. Converting traditional IRA balances to Roth during lower-income years means paying Missouri tax now at lower rates, then taking tax-free Roth withdrawals later. See the full Roth conversion strategy guide.
Withdrawal sequencing. The order you draw from different accounts each year matters. Drawing from taxable brokerage accounts before tapping tax-deferred accounts can keep your Missouri ordinary income lower. Read more in which accounts to withdraw from first.
Social Security timing. Optimizing when you claim Social Security affects both your federal and state tax picture. See when to start Social Security.
Model your Missouri
retirement taxes
The interaction between Missouri's tax rules and federal taxes is too complex to estimate by hand. A year-by-year projection shows your actual tax burden for every year of retirement.
Drawdown Arc's projection engine includes Missouri's full bracket structure, standard deduction, and retirement income exemptions. Set your state to Missouri and enter your account balances, pension, and Social Security timing — the projection shows your Missouri state tax alongside federal tax for every year.
State tax modeling is a Pro feature. The free calculator shows your full federal tax projection — upgrade to Pro to add Missouri (or any of the 50 states) to your model.
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