Missouri
Taxes and business formation • USA 2025–2026
TL;DR
Missouri at a glance — 2026 figures
State filing fees and tax position for individuals and companies registered in Missouri.
| Parameter | Value |
|---|---|
| Personal income tax | See the income tax section below |
| LLC formation fee | $50.00 |
| LLC annual report fee | No report required |
| LLC annual report deadline | No report required |
| LLC dissolution fee | $25.00 |
| Corporation formation fee | $60.00 (minimum) |
| Corporation annual report fee | $25.00 |
State filing fees are set by the Secretary of State and change without notice — the official source is linked in each section below. Federal figures for tax year 2026 are on the 2026 tax cheat sheet.
Updated: August 2026
LLC in Missouri
Corporation in Missouri
Tax system of Missouri
Income Tax
Missouri uses a progressive personal income tax. In 2025, the top rate is 4.70%, applying to taxable income of $8,911 and above. Starting in 2023, the state began lowering the top rate, with further reductions — down to as low as 4.5% — planned under favorable economic conditions.
Sales Tax
Missouri's base sales tax rate is 4.225%. Local surtaxes set at the county and city level are added on top, and the combined rate can exceed 10% in some areas, especially in major cities such as St. Louis or Kansas City. Sales tax applies to most goods and certain services (for example, equipment rentals, short-term accommodations, repair work, etc.). Determining the taxable base and the correct sales tax rate can be quite complex and requires a professional approach and knowledge of state law. Our firm provides services for obtaining a Sales Tax Certificate and for preparing and filing the Sales and Use Tax Return. We advise business owners on all matters related to this tax, including registration, calculation, and reporting.
Property Tax
Property tax rates in Missouri are relatively low. The average effective rate is about 0.91% of assessed value, which makes the state attractive to homeowners and commercial real estate investors. The tax is administered at the county level, and each municipality sets its own rate. Exemptions (Homestead Exemption) are available for seniors and people with disabilities. Property is assessed annually, and owners have the right to appeal.
Business Taxes
Missouri levies a Corporate Income Tax at a rate of 4%, which is one of the lowest rates among states with such a tax. In 2020 the rate was reduced from 6.25% to 4% to encourage economic growth. The tax applies only to C-corporations.
Excise Taxes
Missouri imposes excise taxes on alcohol, fuel, tobacco, and a number of other goods. There is also a car rental tax of 4% on the rental price and a tax on hotel accommodations.
Favorable Tax Conditions
Missouri offers some of the most favorable tax conditions for business in the Midwest. The 4% corporate tax rate is among the lowest in the country, and reductions to the top individual income tax bracket make the state attractive to entrepreneurs and investors. In addition, the absence of a franchise tax and relatively low property tax rates further encourage business formation and expansion. Homeowners are also eligible for tax relief programs, and the overall moderate tax burden makes Missouri a suitable state for long-term residence and real estate investment.
Compared to Other States
Compared with other states, Missouri stands out for its low corporate tax rate and moderate personal income tax. Unlike states with progressive tax scales such as New York, New Jersey, or California, the tax burden here is significantly lower. Missouri also does not levy a tax on personal tangible property of individuals (cars, boats, etc.), which is advantageous for owners of expensive assets. However, unlike states such as Delaware or Florida, Missouri has local sales tax surcharges that can vary widely and must be taken into account. In addition, the state taxes tangible personal property used in business — equipment, furniture, machinery, and other assets must be declared and are subject to annual assessment.
Frequently asked questions
Does Missouri have a personal income tax?+
Yes. Missouri levies a personal income tax on residents. The current rates and brackets are set out in the income tax section on this page, with a link to the state tax authority — rates are revised by the legislature, so always check the official source before filing.
How much does it cost to register an LLC in Missouri?+
The state filing fee in Missouri is $50.00. On top of that you need a registered agent with a physical address in the state, and FinTaxes charges from $299 for the formation service itself.
When is the annual report due for a Missouri LLC?+
The Missouri annual report fee is No report required, due No report required. Missing it typically triggers a late penalty and, if left unresolved, administrative dissolution of the company.
Do I need to live in Missouri to open an LLC there?+
No. You do not need to live in Missouri — or in the United States at all — to own an LLC registered there. Non-residents can form and own a US LLC; what the state requires is a registered agent with a physical in-state address. Your own tax residency is a separate question and decides which returns you file.
Can FinTaxes file my Missouri state return remotely?+
Yes. FinTaxes prepares and e-files federal and Missouri state returns entirely remotely, for clients anywhere in the US or abroad, as an Authorized IRS e-file Provider.
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