Our Dash of SALT Blog provides the most recent developments and changes in state and local tax regulations. Here are the latest updates for Missouri.
January 28, 2026
Missouri Governor Proposes Phasing Out Individual Income Tax
Authored by: Brandon Spinella and Penny Sweeting, CPA
As part of his January 13, 2026, State of the State Address, Missouri Governor Mike Kehoe introduced a five-year plan to repeal the state’s individual income tax and encouraged the General Assembly to pass a resolution that would send the proposal to voters. To replace the lost revenue, the Governor recommended expanding the sales tax base to include currently untaxed services—such as digital services, monthly subscriptions, and online advertising—while reducing certain local taxes, such as property taxes, to offset the impact. Kehoe also emphasized the inclusion of fiscal safeguards, such as triggered rate reductions, to protect the state during economic downturns, and made clear that he would not support extending sales taxes to agriculture, healthcare, or real estate.
If you have any questions about Missouri’s proposal to eliminate individual income tax, please reach out to a member of the Withum SALT Team.
September 1, 2025
Missouri Adds Sales and Use Tax Exemptions for Hygiene Products (Effective August 28, 2025)
Authored by: Bonnie Susmano, JD, MBA and Joe Petrucci
Starting August 28, 2025, Missouri will make it a little easier for residents to purchase hygiene items by exempting diapers, certain incontinence products, and feminine products—like tampons, pads, liners, and cups—from sales and use tax. With this change, Missouri joins a growing number of states supporting access to essential hygiene items.
If you have questions about the taxability of goods and services, please reach out to a member of the Withum SALT Team.
August 11, 2025
Missouri Expands Sales Tax Relief for Broadband Service Providers
Authored by: Bonnie Susmano, JD, MBA and Kiana McGowan, CPA, MBA
On July 10, 2025, Missouri Gov. Kehoe executed HB No. 594. Pursuant to the enacted legislation, effective January 1, 2026, Missouri will implement a new sales and use tax exemption for broadband communications equipment used by broadband service providers. This exemption covers a wide range of qualifying items, including routers, cables, antennas, modems, switches, and related infrastructure. To claim the exemption, providers must supply a written certificate to sellers confirming that the equipment qualifies. The Missouri Department of Revenue also allows providers to enter into direct pay agreements for managing applicable taxes.
This change may benefit broadband providers and affiliated businesses investing in infrastructure across Missouri. It’s important to note that the exemption is limited to equipment used to deliver broadband services, including internet access, telecommunications, and video programming. Businesses should keep this upcoming exemption in mind and consult with their sales tax preparers to confirm that purchases meet the criteria for exemption under the new law.
More information on the state’s proposed changes can be found here.
If you have questions about Sales and Use Taxes, please reach out to a member of the Withum SALT Team.
June 24, 2025
Missouri Releases Updated Sales and Use Tax Rate
Authored by: Katie Nguyen, CPA and Ryan Schupp
Missouri Department of Revenue issued updates to local sales and use tax rates effective July 1, 2025. Some examples of the announced updates include Dallas County imposing a 2.5% local option use tax rate and McDonald County imposing a 2% county use tax rate. Furthermore, Missouri cities such as Bland and Pevely will impose a 1% local general sales tax.
Taxpayers obligated to collect and remit Missouri sales taxes should update their rate tables for the revised county and city rates for the July 1 implementation date.
If your business has questions about local sales taxes, please reach out to a member of the Withum SALT Team.
Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.
Have Questions or Need Guidance?
For more information on this topic, please contact a member of our team.