Low Business Costs

Missouri Corporate Tax & Low Business Costs

In Missouri, corporate taxes and business costs won’t drain all of your company’s profits. By lowering your operation costs, Missouri provides a solid foundation for your company to expand and flourish.

Missouri’s corporate income tax rate is 4%, making us one of the most tax-friendly states in the country. With only income earned in Missouri being taxed, you’ll receive a critical advantage for your business.

Missouri 4
Arkansas	15
Illinois	42
Iowa	23
Kansas	27
Kentucky	18
Nebraska	20
Oklahoma	5
Tennessee	48
Corporate Income Tax Ranking (Tax Foundation, 2025)

Missouri also has a single-factor, market-based corporate income tax apportionment model based only on sales. It’s important to note that Missouri has not adopted worldwide or nationwide unitary tax assessment in computing multinational corporate income tax liability.


Low Taxes & Costs Make Missouri Ideal for Business Growth

Missouri helps companies make their operations more cost-effective and competitive. Businesses operating in Missouri enjoy benefits such as:

  • Reliable and inexpensive energy
  • Aggressive and performance-based incentives
  • Statewide commitment to attracting companies and investment
  • Customized training programs through Missouri One Start
  • Low taxes, business, and labor costs

Talk to our team to find out how we can assist you in improving your profitability and lowering your business costs.


One of the Lowest Corporate Tax Rate States

Top 10 for low corporate income tax index
Tax Foundation, 2025

Competitive Energy Costs

Keep your operating costs at a minimum. With a low, predictable monthly bill, you’ll be able to budget more accurately and effectively.

  • Commercial electricity costs are 30% lower than the U.S. average, at 9.22 cents/kWh (EIA, 2023)
  • Residential electricity costs are 31% lower than the U.S. average, at 11.52 cents/kWh (EIA, 2023)

Specifics on Missouri Taxes 

  • Personal income tax: up to $234 plus 4.95% of excess over $8,449
  • 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: $10,000
  • Unemployment insurance new employer entry rate: 2.376%

Missouri Economy

Missouri offers a stable and thriving economy for businesses and individuals alike. The state’s strong credit ratings, disciplined fiscal management, and commitment to balancing budgets ensure a reliable financial landscape.


Additionally, Missouri’s diverse financial ecosystem supports both large corporations and small businesses, providing access to capital, investment opportunities, and financial services that drive economic growth across the state.

 

Meet Our Expert

Dennis Pruitt, CEcD

Vice President, Business Development

Contact Us

Posts

Discover Warren & Montgomery Counties: Missouri Agri-Ready Communities

Warren and Montgomery Counties are neighboring counties at the intersection of rural and urban ... Read More

Christian County Unveils New Interactive Website

Christian County is rolling out the digital red carpet for travelers and locals alike with the ... Read More

Dexter, Missouri Secures $1 Million Grant to Strengthen Skilled Trades Workforce

In a strategic move to revitalize the local economy and develop a resilient labor pool, Dexter ... Read More

View More

Related Downloads

Missouri Electricity Price Data (Excel)

... Download

Missouri Electricity Price Data (PDF)

... Download

Missouri’s Tax Climate Rankings (PDF)

... Download

Missouri’s Tax Climate Rankings (Excel)

... Download

Missouri Tax Climate Profile

... Download

View More