Missourians to see individual income tax cut under new law
JEFFERSON CITY, Mo. (AP) — Missouri Gov. Mike Parson has signed legislation that his office says will cut the state’s top individual income tax rate to 5.4 percent next year.
The Republican signed the bi ll Thursday.
It will take effect on the heels of earlier tax cuts passed by Missouri’s Republican-led Legislature. A 2014 law enacted gradual cuts based on state revenue growth.
State Treasurer Eric Schmitt this week confirmed that revenue growth will trigger a cut from the current 5.9 percent rate down to 5.8 percent in January because of the earlier law. That covers the top tax bracket, which applies to most Missourians.
On top of that, the new law Parson signed will bring the rate down 0.4 percent. The rate will gradually go down to 5.1 percent depending on state revenue growth.