Does Missouri Tax Retirement Income?
Missouri no longer taxes Social Security and fully exempts public pensions up to the maximum Social Security benefit, without the old income limits. Private pension, 401(k), and IRA income is still generally taxable.
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Quick answer
Missouri no longer taxes Social Security and fully exempts public pensions up to the maximum Social Security benefit, without the old income limits. Private pension, 401(k), and IRA income is still generally taxable. The top state individual income-tax rate shown for 2026 is 4.7%.
Official sources: Missouri Department of Revenue, pension FAQ
How Missouri Treats Each Retirement Income Stream
| Income stream | Missouri treatment |
|---|---|
| Social Security | For 2024 and later years, Social Security retirement benefits are fully deductible for taxpayers 62 or older, and disability benefits also qualify, with no income limit. |
| Public and private pensions | Public pensions such as state, local, and federal government retirement can be deducted up to the 2026 maximum Social Security benefit of $48,967, reduced by any Social Security deduction claimed. The prior income limits were removed starting in 2024. Private pensions can qualify for an exemption of up to $6,000, subject to an income-based phaseout. |
| Traditional 401(k) and IRA withdrawals | Traditional 401(k) and IRA withdrawals are generally taxable in Missouri but can count toward the $6,000 private pension exemption. The exemption phases out dollar for dollar as Missouri adjusted gross income exceeds $25,000 for a single filer or $32,000 on a joint return. |
| Military retirement pay | Military retirement pay is fully deductible from Missouri income. Survivor Benefit Plan payments do not qualify for the military subtraction but may qualify for the public pension exemption. |
Missouri's recent reforms reward Social Security recipients and government retirees far more than private savers. A retired teacher or federal employee can shelter most of their pension, while a private-sector retiree drawing the same dollars from a 401(k) generally pays tax on nearly all of it.
The State Exclusion That Changes the Math
The main exclusions are the full Social Security deduction at age 62 and the public pension exemption capped at the annual maximum Social Security benefit, less the Social Security deduction claimed. The $6,000 private retirement exemption phases out above $25,000 of Missouri adjusted gross income for a single filer or $32,000 on a joint return.
Model the actual eligibility rule
Classify every income source correctly. Military retirement pay receives the military subtraction, while Survivor Benefit Plan payments may use the public pension exemption instead. Private pensions and retirement accounts receive only the smaller phased exemption. Watch for further triggered rate cuts below 4.7%, which depend on state revenue rather than a fixed schedule.
A Worked Retirement-Income Example
A 68-year-old with $30,000 of Social Security, $40,000 from a 401(k), and a $20,000 private pension deducts the Social Security in full. The $60,000 of 401(k) and private pension income exceeds the private exemption income limits, so no part of the $6,000 exemption applies and about $60,000 remains taxable before the standard deduction, at rates topping out at 4.7%.
This is a state-income example, not a tax return
Federal tax, local income tax, filing status, deductions, basis, Roth treatment, residency, and plan-specific rules can change the result. Use the example to compare structure, not as individualized tax advice.
Military Retirement and Transfer-Tax Fine Print
Military retirement: Military retirement pay is fully deductible from Missouri income. Survivor Benefit Plan payments do not qualify for the military subtraction but may qualify for the public pension exemption.
Estate and inheritance tax: Missouri has no estate or inheritance tax.
Should Retirement Taxes Drive a Move to Missouri?
Missouri's recent reforms reward Social Security recipients and government retirees far more than private savers. A retired teacher or federal employee can shelter most of their pension, while a private-sector retiree drawing the same dollars from a 401(k) generally pays tax on nearly all of it.
Classify every income source correctly. Military retirement pay receives the military subtraction, while Survivor Benefit Plan payments may use the public pension exemption instead. Private pensions and retirement accounts receive only the smaller phased exemption. Watch for further triggered rate cuts below 4.7%, which depend on state revenue rather than a fixed schedule.
Compare the annual retirement-income result with property tax, insurance, sales tax, health-care access, housing cost, and the residency facts needed to leave the former state. For a broader comparison, use our 51-jurisdiction retirement tax table.
Missouri Retirement Tax FAQs
Planning retirement income in Missouri?
We can model the state and federal interaction before a large distribution, Roth conversion, or interstate move. The initial consultation is free. Educational content is not individualized tax advice.