Missouri Income Tax Rates & Brackets (Tax Year 2025 — Filed in 2026)

Remote Workers and Multi-State Taxation

Living in Missouri, Working for an Out-of-State Employer

As a Missouri resident, you owe Missouri income tax on ALL income, regardless of where your employer is located. Employer location does not determine Missouri tax obligation.

What this means:

• A Missouri resident working remotely for a Texas, California, or any other out-of-state employer owes Missouri income tax on that income
• The employer is required to withhold Missouri income tax if the employee is a Missouri resident
• If the employer withholds tax for another state at a rate lower than Missouri’s rate, the employer must also withhold and remit the difference to Missouri (unless the employee files Form MO W-4C)

Form MO W-4C: A Missouri resident employed in another state may file this Withholding Affidavit with their employer. This shifts responsibility for reporting the withholding difference from the employer to the employee. It is not required — the employer remains responsible if the employee does not file it.

Source: https://dor.mo.gov/forms/4282_2025.pdf
Source: https://dor.mo.gov/faq/taxation/individual/general.html

Working in Missouri, Living in Another State

Non-residents who perform work physically in Missouri owe Missouri income tax on income earned from Missouri sources.

Physical Presence Rule: Income is sourced to Missouri based on where work is physically performed. Wages paid for services rendered in Missouri are subject to Missouri income tax withholding.

Allocation for partial Missouri work: Non-resident employees who work partly in Missouri and partly outside the state may allocate wages to Missouri based on the ratio of Missouri-performed services to total services. Form MO W-4A (Certificate of Nonresidence or Allocation of Withholding Tax) is used for this purpose.

Source: https://dor.mo.gov/forms/4282_2025.pdf
Source: https://dor.mo.gov/taxation/individual/additional-resources/non-residents.html

⚠️ Interstate Tax Risk Indicator

Remote workers involving Missouri commonly encounter dual taxation complications with specific states:

Working with these states requires careful planning:

• New York — Applies a “convenience of the employer” rule; may tax Missouri residents’ NY-source income even when working remotely from Missouri
• California — Aggressive residency audits; if a Missouri resident spends substantial time working from California, California may assert taxation
• Pennsylvania — No reciprocity with Missouri; 200+ local income tax jurisdictions add complexity for Pennsylvania-source income
• Kansas — No reciprocity with Missouri; residents of the Kansas City metro area often work across the state line

Source: https://dor.mo.gov/taxation/individual/additional-resources/non-residents.html and IRS Publication 505

“Convenience of the Employer” Rule

Missouri does not apply a “convenience of the employer” rule. Missouri taxes non-residents only on income from work physically performed within Missouri.

This means if you are a Missouri resident working remotely for a New York employer entirely from your Missouri home, New York may attempt to tax your income (under New York’s convenience rule), but Missouri will provide a credit for taxes paid to New York on Missouri Form MO-CR.

Source: https://dor.mo.gov/taxation/individual/additional-resources/non-residents.html

Reciprocal Agreements

Missouri has no reciprocal agreements with any other state.

This is confirmed in the Missouri Employer’s Tax Guide (Form 4282, Revised August 2025): “Note: Missouri does not have a reciprocity agreement with any other state.”

What this means for Missouri workers:

• There is no exemption certificate to file with a neighboring state’s employer
• Missouri residents working in other states may owe income tax in both Missouri and the state where work is performed
• The credit for taxes paid to other states (Form MO-CR) is the mechanism for avoiding double taxation on the same income

Source: https://dor.mo.gov/forms/4282_2025.pdf

Multi-State Tax Filing

When earning income in multiple states as a Missouri resident:

1. File a resident return in Missouri (Form MO-1040) reporting all income from all sources
2. File non-resident returns in other states where income was earned
3. Claim a credit on the Missouri return using Form MO-CR for taxes paid to other states

Forms required:

• Form MO-1040 — Missouri Individual Income Tax Return (Long Form)
• Form MO-CR — Credit for Income Taxes Paid to Other States or Political Subdivisions (one per other state)
• Other state’s non-resident return(s)

Important: A taxpayer filing as a non-resident may calculate their Missouri income percentage using Form MO-NRI. A taxpayer cannot claim both Form MO-CR and Form MO-NRI — they must choose the more beneficial method.

Source: https://dor.mo.gov/taxation/individual/additional-resources/non-residents.html
Source: https://dor.mo.gov/faq/taxation/individual/non-resident.html