Living in the Lou is great until you look at your paystub and realize a chunk of change vanished into the "City Earnings Tax" void. It's one of those things people grumble about at bars in Soulard or over coffee in the Central West End, but honestly, the city of st louis tax rate is a bit of a jigsaw puzzle. You've got the 1% earnings tax, a sales tax that feels high when you're buying a new TV, and property taxes that vary wildly depending on whether you're in a "Special Business District" or not.
Basically, if you live or work within the city limits, you’re paying into a system that’s been debated, sued, and voted on more times than most of us can count.
The Infamous 1% Earnings Tax
Let's talk about the elephant in the room: the earnings tax. St. Louis is one of only two cities in Missouri—the other being Kansas City—that still collects a flat 1% tax on your paycheck. It sounds small. Just 1%. But if you’re making $75,000 a year, that’s $750 annually that you never see.
It applies to two groups of people. First, if you live in the city, you pay 1% on everything you earn, no matter where your office is located. Second, if you live in the county (or across the river in Illinois) but your job is physically located inside the city, you still owe that 1%.
The City Collector of Revenue, Gregory F.X. Daly, oversees this collection. It’s a massive deal for the city budget—around 36% of the general revenue comes from this single tax. That money goes toward the stuff you see every day: filling potholes, keeping the lights on in Forest Park, and funding the police and fire departments.
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There was a whole mess during the pandemic regarding remote work. For a while, the city tried to keep the tax even if you were working from your couch in Ballwin. After some legal battles, the rules shifted. Now, if you're a non-resident working "virtually" outside the city, you might be eligible for a refund for the days you weren't physically present in a city office. You just have to file Form E-1R and get your boss to sign off on it.
Sales Tax: Why Your Receipt Looks Like a Novel
If you’ve ever bought something downtown and wondered why the total was way higher than the price tag, look at the bottom of the receipt. The combined city of st louis tax rate for sales is currently around 9.679% for most areas, but it can spike higher in certain spots.
This isn't just one tax; it's a stack of them.
- Missouri State Sales Tax: 4.225%
- City of St. Louis Local Tax: Various portions for parks, public safety, and transit.
Then there are the CIDs and TDDs. Those stand for Community Improvement Districts and Transportation Development Districts. If you’re shopping at a place like the Foundry or certain parts of Downtown, you might pay an extra 1% because the businesses in that specific block voted to tax themselves (and you) to pay for parking garages or security. In some of these special zones, your total sales tax can climb over 11%.
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Kinda wild, right? You walk across the street and the price of a soda literally changes.
Property Taxes and the Assessment Rollercoaster
Property tax in St. Louis isn't a flat number. It's based on "assessed value," which is a fraction of what your house is actually worth on the market. In Missouri, residential property is assessed at 19% of its fair market value.
The total rate usually hovers around $8 per $100 of assessed value. But here's the kicker: only a small portion of that actually goes to the city government. The biggest slice of that pie—usually over 50%—goes straight to the St. Louis Public Schools (SLPS). The rest is split between the library, the Zoo-Museum District, and community colleges.
Every two years, the City Assessor re-evaluates what your home is worth. If your neighborhood is "up and coming" (looking at you, Tower Grove South and the Grove), your bill might jump significantly even if the tax rate itself stays the same. People often confuse a higher bill with a higher rate, but usually, it's just your house getting more expensive in the eyes of the city.
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Business Taxes: More Than Just Income
If you’re running a business in the city, the city of st louis tax rate landscape gets even more complex. On top of the 1% business earnings tax on net profits, there's the Payroll Expense Tax.
This is a 0.5% (half of one percent) tax paid by the employer on the total compensation paid to employees. It’s essentially the "cost of doing business" in city limits. It’s often a point of contention for startups choosing between a cool loft in Washington Avenue or a boring office park in Clayton.
What This Means for Your Wallet
So, is St. Louis a "high tax" city? It depends on your perspective. Compared to Chicago or New York, our property taxes are actually quite low. However, when you stack the 1% earnings tax on top of the state income tax (which tops out at 4.7% for 2026), city residents end up with a higher local tax burden than their neighbors in St. Louis County.
The trade-off? City residents often have lower trash and water bills, and they don't have to deal with some of the municipal fees that tiny county suburbs tack on.
Actionable Steps for St. Louis Taxpayers
- Check Your W-2: If you live in the county but work in the city, make sure your employer is withholding the 1% correctly. If they aren't, you'll get a surprise bill (plus interest) in April.
- Track Your Remote Days: If you're a non-resident but your "office" is in the city, keep a log of every day you work from home. Use Form E-1R to claim that 1% back for the time you spent working outside the city boundaries.
- Appeal Your Assessment: When those yellow assessment cards come in the mail every two years, don't just ignore them. If you think the city is overvaluing your home, you have a window to appeal to the Board of Equalization.
- Look for Special Tax Districts: Before making a major purchase like furniture or jewelry, check if the store is in a CID or TDD. Driving five minutes to a store outside a special district can save you 1% to 2% on the total price.
Ultimately, the tax system in St. Louis is designed to support an aging infrastructure and a concentrated urban core. Whether it's "fair" is a debate that happens every time the earnings tax comes up for its mandatory renewal vote every five years. For now, it's a fixed part of life in the Gateway City.
To stay on top of your specific obligations, always verify your property's specific tax rate through the City of St. Louis Assessor’s website, as rates are finalized late in the calendar year for the following tax cycle.