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Business Community - Taxes

State and local tax structures provide corporations with a favorable tax climate conducive to growth and profitability. About 4.5 percent of Missouri's tax revenue is derived from corporate income tax. In most cases, a company located in Missouri will have a lower corporate tax bill than in other states.

The tax rate for individuals ranges from 1.5 percent on the first $1,000 of taxable income to 6 percent of taxable income over $9,000. Missouri taxable income is reduced by the amounts of various standard and itemized deductions. The standard deductions include a portion of federal income tax paid (up to $5,000 on a single return and $10,000 on a joint return), $1,200 for each dependent, $2,100 for each personal exemption, as well as the federal standard deduction for a married couple filing jointly who does not itemize deductions. Only income earned in Missouri is taxed. For more information, call Missouri Taxpayer Assistance at (816) 889-2944.

Manufacturers' inventories (raw materials, goods in process, finished goods), retailers' goods and wares, wholesalers and distributors are exempt from all state and local property tax.

A use tax is similar to a sales tax, but imposed only when tangible personal property comes into the state and is stored, used or consumed in Missouri. The state allows eight major exemptions from sales/use taxes for manufacturers and ICED has specific information on the exemptions. The total general sales tax (state, county and city) for Independence is 7.6 percent.