Saturday 15th February 2025

governor-mike-parson-bill-sign

Governor Mike Parson announced an additional income tax cut under Senate Bills (SB) 3 and 5, during the Springfield Area Chamber of Commerce’s annual State of the State. This income tax cut lowers Missouri’s top income tax rate to 4.7 percent and marks a more than 20 percent decrease in Missourians’ income tax burdens during the Parson Administration.

Even before this income tax cut, Missouri was ranked 11th for the lowest tax burden in the nation, including both state and local taxes, by U.S. News.

SBs 3 and 5, passed by the General Assembly and signed by Governor Parson after his special session call in 2022, included additional 0.1 percentage point income tax cut triggers when general revenue increased by $200 million, adjusted for inflation, in a given fiscal year (FY). Net general revenue collections grew by $322.6 million from FY23 to FY24. As a result, Missouri’s top income tax rate will be cut from 4.8 percent to 4.7 percent, effective January 1, 2025.

This action marks the fifth income tax cut Governor Parson has implemented during his time in office and a 1.2 percentage point total reduction: 0.5 in 2019, 0.1 in 2022, 0.35 in 2023, 0.15 in 2024, and 0.1 in 2025.

Section 143.011, RSMo defines net general revenue collected as all revenue deposited into the general revenue fund, less refunds and revenues originally deposited into the general revenue fund but designated by law for a specific distribution or transfer to another state fund.