The Missouri Partnership is a public-private economic development partnership and a top economic development organization in the US

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It takes money to make money. But it doesn't take as much in Missouri.

Making money is easier in Missouri, because taxes in Missouri and business costs don’t eat up all the profits. 

Take taxes, for example: Missouri is the only state that allows companies to choose their own income allocation formula (three-factor or single-factor), whichever results in the lesser corporate income tax liability. In short, Missouri will not penalize you for locating within its borders!  

This welcome also extends to the income tax rate. At 6.25 percent, Missouri’s rate is already competitive. But, by allowing 50 percent of federal income tax to be deducted from taxable income, Missouri is able to offer companies an effective tax rate of 5.2 percent.

The franchise tax is another example of Missouri’s business friendly environment. The tax was completely eliminated in 2016.

Tax rates

  • Corporate income tax: 6.25%—50% of federal income tax payments may be deducted before computing taxable income, leading to an effective rate of 5.2%
  • Taxable income apportionment formula: 3 factor or sales
  • Personal income tax: up to $315 plus 6.0% of federal taxable income over $9,000
  • Property tax: Commercial and industrial property assessed at 32%; personal property at 33 1/3%. Business inventories are not taxed. Tax rates are the aggregate of local taxing districts and a .03 state tax.
  • State sales and use tax: 4.225%
  • Unemployment insurance taxable wage base: $13,000
  • Unemployment insurance new employer entry rate: 3.510%

Tax rankings

Utility facts

  • Commercial electricity costs are nearly 15% lower than the U.S. average, at 9.02 cents/kWh (EIA, 2015).
  • Industrial electricity costs are nearly 10% lower than the U.S. average, at 6.22 cents/kWh (EIA, 2015).
  • Click here to download a Missouri utility cost comparison. 

Next steps

Download tax climate rankings for Missouri and surrounding states, the Missouri business tax profile, or a Missouri utility cost comparison.