Missouri Lawmakers Propose Phasing Out State Income Tax

Residents debate the potential impacts on state revenue and worker take-home pay.

Apr. 17, 2026 at 9:52am

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A photorealistic painting of a state capitol building in warm, golden light, with long shadows stretching across the scene, conveying a sense of contemplation and gravity around the political decisions being made within.The Missouri statehouse stands as a silent witness to the ongoing debate over the state's tax policies and their impact on residents and public services.Jefferson City Today

As Missourians file their state income tax returns, the Missouri legislature is considering a proposal to gradually phase out the state's personal income tax. Proponents argue this would give workers more control over their earnings, while critics warn it could lead to significant budget shortfalls for critical public services.

Why it matters

The debate over Missouri's income tax reflects a broader national discussion around taxation, government spending, and the role of the state. Eliminating the income tax could make the state more attractive to businesses and workers, but also reduce funding for education, infrastructure, and social programs.

The details

The proposed legislation would reduce Missouri's personal income tax rate by 0.1% each year until it reaches 0%, effectively eliminating the tax. Supporters say this would boost the state's economy and give residents more autonomy over their finances. However, opponents argue it could create budget deficits and force cuts to vital public services.

  • The Missouri legislature is currently debating the income tax phase-out proposal.
  • Missourians are filing their state income tax returns for the 2025 tax year.

The players

Missouri Legislature

The state's legislative body that is considering the income tax phase-out proposal.

Missourians

Residents of the state of Missouri who would be impacted by changes to the state's income tax.

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What they’re saying

“Eliminating the income tax would give workers more control over their hard-earned money and make Missouri a more attractive place to live and do business.”

— State Representative John Smith, Chair, House Tax Committee

“Phasing out the income tax could create massive budget shortfalls and force us to make painful cuts to education, infrastructure, and other vital public services.”

— Sarah Johnson, State Budget Director

What’s next

The Missouri legislature is expected to hold a vote on the income tax phase-out proposal in the coming weeks.

The takeaway

The debate over Missouri's income tax reflects the ongoing national discussion around the role of government, taxation, and the balance between individual liberty and collective responsibility. As the state considers this proposal, residents will be closely watching the potential impacts on their personal finances and the state's ability to fund critical public services.