You’ve probably heard the rumors. Missouri used to be a place where retirees had to watch their backs during tax season. For a long time, if you made "too much" money, the state would take a slice of your Social Security or your hard-earned pension. Honestly, it was a bit of a headache.
But things have changed. Drastically.
If you are looking for a straight answer on does missouri tax retirement income, the short version is: basically no, but the "how" depends entirely on where your check is coming from. As of 2026, the Show-Me State has pulled a complete 180. It has transformed from a "maybe" state into one of the most tax-friendly spots for retirees in the Midwest.
The Big Shift: Social Security is Now Safe
For years, Missouri had these annoying "income cliffs." If your adjusted gross income (AGI) topped $85,000 as a single filer or $100,000 as a married couple, the state started nibbling at your Social Security benefits. It felt like a penalty for being successful or saving well.
That’s gone.
Starting with the 2024 tax year, Missouri completely eliminated the income limits on Social Security exemptions. It doesn't matter if you're bringing in $30,000 or $300,000. If that money is coming from Social Security, Missouri doesn't want a dime of it. This was a massive win for seniors who were previously caught in that middle-income trap where they earned just enough to lose their exemption but not enough to feel wealthy.
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Private Pensions and 401(k)s: The 2026 Breakthrough
This is the part where people usually get confused. Private retirement income—stuff like your 401(k) withdrawals, 403(b) plans, and traditional IRAs—used to be the "gotcha" in the Missouri tax code.
Until very recently, you could only deduct up to $6,000 of private pension income, and even then, only if you stayed under strict income caps ($25,000 for singles, $32,000 for couples). If you went over those limits, you were basically out of luck.
Here is the update for 2026:
Under new legislation (specifically the momentum from HB 426), Missouri has moved to fully exempt private pension and retirement allowances. Just like Social Security, the 100% exemption for private sources is now kicking in regardless of your total income or filing status.
There is one specific detail to watch: Roth IRAs.
Because Roth contributions are made with after-tax dollars and the withdrawals are generally tax-free at the federal level, they aren't "taxed" in Missouri anyway. The new laws mostly focus on the "taxable" portion of your retirement income that shows up on your federal return.
Public Pensions: A Different Set of Rules
If you’re a retired teacher, firefighter, or state employee, you’re likely pulling from a public pension like MOSERS or PSRS/PEERS. Missouri treats these a little differently than a private 401(k).
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Public pensions have been eligible for a 100% exemption for a while now, but there's a catch. Your deduction is capped at the "maximum Social Security benefit" for that year. For 2025/2026, that number is roughly $47,000 to $48,000.
If your public pension pays you $60,000 a year, you can subtract that maximum Social Security amount from your Missouri taxable income. The leftover bit? That might still be subject to Missouri’s top tax rate, which has been hovering around 4.7% and is technically scheduled to drop further if state revenues hit certain targets.
The "Military Bonus"
Missouri loves its veterans. If you are receiving military retirement pay, you can breathe easy. 100% of military retirement benefits are exempt from Missouri state income tax. This has been the case for a while, and it remains one of the strongest incentives for veterans to settle in the Ozarks or near Kansas City.
What About Property Taxes? (The SB 190 Factor)
You can’t talk about retirement taxes without talking about the home you live in. While the state is backing off your income, your local county might still be hitting you with property tax hikes.
However, Missouri passed Senate Bill 190, which is a game-changer for homeowners 62 and older. It allows counties to "freeze" property tax assessments for seniors.
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It’s not automatic! You have to check if your specific county (like Jackson, St. Louis, or Greene) has adopted the ordinance. If they have, your property tax bill effectively stays at the level it was when you became eligible. It prevents you from being priced out of your own home just because the neighborhood got fancy.
Why the Math Matters Now
Let’s look at a quick, realistic scenario.
Imagine a couple in Branson:
- Social Security: $35,000 (Exempt)
- Private Pension: $20,000 (Exempt in 2026)
- Part-time Job: $10,000 (Taxable)
In the old days, they might have paid state tax on a big chunk of that. In 2026, their "taxable" income in the eyes of Missouri is essentially just the $10,000 from the part-time job. Once you apply the Missouri standard deduction (which mirrors the federal amount, plus a little extra for seniors), their state tax bill could realistically be $0.
Actionable Steps for Your Next Tax Filing
- Check your 1099-Rs: Make sure you’re distinguishing between "public" and "private" sources. Missouri's Form MO-A is where the magic happens, and you don't want to leave money on the table by mislabeling a source.
- Apply for the Freeze: Call your County Assessor’s office tomorrow. Ask specifically: "Has this county implemented the SB 190 senior property tax credit, and what is the deadline for the application?" Some counties have deadlines as early as June 30.
- Adjust Your Withholdings: If you’ve been having Missouri state tax withheld from your pension checks, you might be giving the state an interest-free loan you don't owe them. Talk to your plan administrator about reducing or stopping Missouri state withholding if your income now falls under the new 100% exemption rules.
- Watch the "Circuit Breaker": If you are a lower-income renter or homeowner (under certain thresholds, usually around $30k-$34k depending on status), you might still qualify for the Missouri Property Tax Credit, even if you don't owe any income tax. It’s basically a refund check for taxes or rent you’ve already paid.
Missouri’s tax code used to be a maze for retirees. Now, it’s more like a welcome mat. By eliminating the tax on Social Security and private pensions, the state has positioned itself as a serious competitor to "no-income-tax" states like Florida or Tennessee, especially when you factor in the lower cost of living. Keep your records clean and make sure you’re claiming every new exemption the 2026 laws allow.