Missouri

Missouri estate tax equals the federal IRC 2011 state death tax credit (pickup only)

“The Missouri estate tax shall be the maximum credit for state death taxes allowed by Internal Revenue Code Section 2011 but not less than the maximum credit for state death taxes allowable to the estate of a decedent against the federal estate tax by Section 2011 or any other provision of the laws of the United States.”

Note: Exact wording checked against raw HTML. Quote proves pickup structure; zero-tax conclusion requires the federal credit repeal.

Missouri allows a 100% subtraction of net capital gains from income, effective TY2025

“For all tax years beginning on or after January 1, 2025, an individual may subtract from the taxpayer's Missouri adjusted gross income one hundred percent of the amount of net capital gains included in the taxpayer's federal adjusted gross income.”

Note: Verified TY2025 effective date: the enacted statute, MO-A line 18 instructions for 2025, and DOR legislative-changes page all confirm TY2025. A DOR FAQ that appeared to say TY2026 conflates HB 754 (specie subtraction, effective TY2026). Losses still reduce MO FAGI and generate up to 4.7% state tax benefit a sign-asymmetric no-gains regime. Trusts are excluded from this subtraction.

Missouri allows a 100% subtraction of net capital gains from income, effective TY2025

“For all tax years beginning on or after January 1, 2025, an individual may subtract from the taxpayer's Missouri adjusted gross income one hundred percent of the amount of net capital gains included in the taxpayer's federal adjusted gross income.”

Note: Verified TY2025 effective date: the enacted statute, MO-A line 18 instructions for 2025, and DOR legislative-changes page all confirm TY2025. A DOR FAQ that appeared to say TY2026 conflates HB 754 (specie subtraction, effective TY2026). Losses still reduce MO FAGI and generate up to 4.7% state tax benefit a sign-asymmetric no-gains regime. Trusts are excluded from this subtraction.

MO exempts MO-issued bonds; out-of-state muni bond interest is an addition per RSMo §143.121(2)(2)

“Interest on certain governmental obligations excluded from federal gross income by 26 U.S.C. Section 103...The previous sentence shall not apply to interest on obligations of the state of Missouri or any of its political subdivisions or authorities.”

Note: RSMo §143.121(2)(2) requires addition of IRC §103 interest from states other than Missouri but excludes MO bonds from the addition requirement. Verbatim text extracted from revisor.mo.gov. Out-of-state muni bonds taxable; MO bonds exempt by explicit carve-out.

MO exempts MO-issued bonds; out-of-state muni bond interest is an addition per RSMo §143.121(2)(2)

“Interest on certain governmental obligations excluded from federal gross income by 26 U.S.C. Section 103...The previous sentence shall not apply to interest on obligations of the state of Missouri or any of its political subdivisions or authorities.”

Note: RSMo §143.121(2)(2) requires addition of IRC §103 interest from states other than Missouri but excludes MO bonds from the addition requirement. Verbatim text extracted from revisor.mo.gov. Out-of-state muni bonds taxable; MO bonds exempt by explicit carve-out.

Missouri conforms to IRC §1400Z-2 QOZ gain deferral and exclusion

“1. The Missouri adjusted gross income of a resident individual shall be the taxpayer's federal adjusted gross income subject to the modifications in this section.”

Note: Conformity by silence: RSMo §143.121 starts from federal adjusted gross income and lists no §1400Z-2 addback, so the federal QOZ deferral and exclusion flow into the Missouri base.

Missouri conforms to IRC §1202 QSBS gain exclusion

“1. The Missouri adjusted gross income of a resident individual shall be the taxpayer's federal adjusted gross income subject to the modifications in this section.”

Note: Conformity by silence: RSMo §143.121 starts from federal adjusted gross income and lists no §1202 addback, so federally excluded QSBS gain never enters the Missouri base.

Missouri taxes FNMA and FHLMC bond interest as ordinary income: the 100% capital gains subtraction (HB 594) applies only to 'net capital gains,' not interest income

“For all tax years beginning on or after January 1, 2025, one hundred percent of all income reported as a capital gain for federal income tax purposes by an individual subject to tax pursuant to section 143.011;”

Note: The HB 594 subtraction in RSMo §143.121.3(14) covers only income reported as a capital gain for federal purposes. FNMA and FHLMC interest is ordinary income, not a capital gain, so it is not subtracted and stays in the Missouri base.

Missouri allows a 100% subtraction of net capital gains from income, effective TY2025

“For all tax years beginning on or after January 1, 2025, an individual may subtract from the taxpayer's Missouri adjusted gross income one hundred percent of the amount of net capital gains included in the taxpayer's federal adjusted gross income.”

Note: Verified TY2025 effective date: the enacted statute, MO-A line 18 instructions for 2025, and DOR legislative-changes page all confirm TY2025. A DOR FAQ that appeared to say TY2026 conflates HB 754 (specie subtraction, effective TY2026). Losses still reduce MO FAGI and generate up to 4.7% state tax benefit a sign-asymmetric no-gains regime. Trusts are excluded from this subtraction.

U.S. Treasury interest exempt from Missouri income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations

“Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.”

Note: 31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.

FHLB and FFCB bond interest exempt from Missouri income tax: federal enabling statutes mandate state tax exemption

“Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.”

Note: 12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.

Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation

“The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).”

Note: 12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.

Missouri income tax is one graduated schedule applied identically to every filing status (no separate MFJ brackets; top rate 4.7% for TY2025)

“A tax is hereby imposed for every taxable year on the Missouri taxable income of every resident.”

Note: RSMo §143.011 imposes one graduated bracket schedule on 'every resident' without distinction by filing status (statutory table plus the SB 3 (2022) triggered reductions; top rate 4.7% for TY2025). Missouri is graduated, not flat, and the identical schedule carries no practical marriage penalty: on a combined MFJ return each spouse's tax is computed separately on that spouse's own Missouri taxable income and summed (RSMo §143.031). Capital gains are effectively zero-taxed under HB 594 (RSMo §143.431) effective TY2025.

Missouri combined return: each spouse's tax is computed separately on that spouse's own Missouri taxable income, then summed (income splitting; effectively marriage neutral)

“The tax of each spouse shall be determined by the application of either section 143.021 or section 143.041 depending upon whether such spouse is a resident or nonresident. Their Missouri combined tax shall be the sum of the tax applicable to each spouse.”

Note: Verified verbatim against revisor.mo.gov on 2026-07-02. Because each spouse runs the identical schedule on own income, a Missouri MFJ couple pays the same as two singles with the same earnings: identical schedule with per-spouse computation, not a penalty-maximizing joint stack.

Missouri conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference

“A tax is hereby imposed for every taxable year on the Missouri taxable income of every resident.”

Note: RSMo §143.011 imposes the tax on Missouri taxable income, which starts from federal adjusted gross income, so the federal section 1212 capital-loss base carries through. No published guidance addresses the imported pre-residency carryforward; that piece stays a structural inference.