Like most states, the Missouri’s State Income Tax system uses an income tax with several brackets depending on your level of income. There are ten different earning brackets and the income tax rates range from 1.5% to 6%.
The Missouri State Sales tax rate is set at 4.225%, which includes conservation and other taxes. The state sales tax applies to the sale of all personal tangible goods and some taxable services. There is also a Use Tax charged to businesses, which generally gets passed on to the customer.
There are also many local taxes throughout the state that are added onto the state sales tax. In some areas, the total sales tax rate can exceed 10%, with extra taxes like the “community improvement district” tax, “transportation development district” tax, and “museum district” tax. Certain foods also have a tax rate of 1.225%.
There are several exemptions to the Missouri state sales tax, including purchases by charitable organizations.
There generally two ways you can file your tax return. You can file it on paper, which you can do either by yourself, or by hiring tax professionals to file it for you. Filing yourself can be difficult and tiresome, and it can be easy to make mistakes with so many forms to fill out. Hiring a professional can end up getting pretty expensive, and there’s still the chance of human error. Not to mention when you file on paper, it can take weeks and weeks for your tax return to get back to you. It really doesnt matter how complicated your tax situation is usually an online tax preparation company can walk you through the process and save you a lot of money too! So consider e-filing your state tax return this year.