Missouri House Passes Bill to Eliminate State Income Tax, Raise Sales Tax

Proposal would allow voters to incrementally phase out income tax, expand sales tax on goods and services

Mar. 13, 2026 at 11:18am

Got story updates? Submit your updates here. ›

The Missouri House of Representatives passed a resolution that would allow citizens to vote on a constitutional amendment to incrementally eliminate the state income tax. The proposal would also authorize lawmakers to expand sales taxes on goods and services to make up for the lost income tax revenue.

Why it matters

This represents a significant shift in Missouri's tax structure, moving from a progressive income tax system to a greater reliance on sales taxes. Supporters argue it will provide more disposable income for residents, but critics warn it could disproportionately burden low-income households and create budget instability.

The details

Under the proposal, income tax rates would gradually decrease as sales tax revenues increase. Currently, Missouri has a progressive income tax system, with individuals earning less than $1,313 annually exempt. The expanded sales tax would apply to everyday expenses like car repairs, haircuts, and plumbing services. Democratic lawmakers expressed concerns that the plan would benefit high-income earners while increasing the tax burden on low-income Missourians.

  • The Missouri House passed the resolution on Thursday, March 13, 2026.
  • The resolution now moves to the Missouri Senate.
  • If passed by the Senate, the measure will be placed on the November 2026 ballot for voters to decide.

The players

Governor Mike Kehoe

Identified eliminating the state income tax as a key priority this year.

Representative John Martin, R-Columbia

Argued the change would provide Missourians with more disposable income and benefit workers like those employed by his septic pumping and hydrojetting company.

Representative Yolanda Young, D-Kansas City

Argued the plan would disproportionately burden low-income Missourians by increasing taxes on essential services.

House Speaker Jonathan Patterson, R-Lee's Summit

Described the proposal as a 'modernization of the sales tax,' suggesting some sales tax rates could potentially decrease.

House Minority Leader Ashley Aune, D-Kansas City

Cautioned against the plan, drawing parallels to a similar tax cut implemented in Kansas that ultimately led to budgetary issues and a change in governorship.

Got photos? Submit your photos here. ›

What they’re saying

“We have a historic opportunity to support Missourians have more take-home pay and they can choose to spend that.”

— Representative John Martin, R-Columbia

“This plan simply 'shifts' taxes, placing a greater financial strain on those already struggling.”

— Representative Yolanda Young, D-Kansas City

“Eliminating them would create a $9 billion budget shortfall.”

— House Minority Leader Ashley Aune, D-Kansas City

What’s next

The resolution now moves to the Missouri Senate. If passed by the Senate, it will be placed on the ballot for voters to decide in November.

The takeaway

This proposal represents a significant gamble with Missouri's state revenue, shifting from a progressive income tax to a greater reliance on sales taxes. While supporters argue it will provide more disposable income, critics warn it could disproportionately burden low-income households and create budget instability, particularly during economic downturns.