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Low Business Costs

Corporate Income Tax Ranking (Tax Foundation, 2023)

Keep Business Operation Costs Low

Missouri provides you with a solid business expansion foundation. In Missouri, taxes and business costs don’t eat up all of your company’s profits. With only income earned in Missouri being taxed, you’ll receive a critical advantage for your business. Starting January 1, 2020, Missouri’s corporate income tax rate dropped to 4 percent, making us one of the most tax-friendly states in the U.S. Missouri also moved to 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 Make Missouri a Great Business Growth Location

Corporate benefits like low business and labor costs, customized training programs through Missouri One Start, reliable and inexpensive energy, aggressive and performance-based incentives and a statewide commitment to attracting companies and investment, make Missouri a place where your company can come to grow and thrive. Let’s talk to find out how we can assist you in improving your profitability and lowering your business costs; we’ve listed several critical benefits below that show why Missouri is the perfect place for business expansion or relocation.

  • In January 2020, Missouri lowered the corporate income tax rate from 6.25 percent to 4 percent, which ranks us second among states that levy such a tax.
  • In January 2020, Missouri moved to a single factor, market-based apportionment corporate income tax model based only on sales.
  • Personal income tax: up to $291 plus 5.3% of excess over $8,968
  • 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: $11,000
  • Unemployment insurance new employer entry rate: 2.376%

Keep Your Taxes Low in Missouri

Missouri is a low tax state
Tax Foundation, 2023

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 20% lower than the U.S. average, at 9.20 cents/kWh (EIA, 2021)
  • Residential electricity costs are 18% lower than the U.S. average, at 11.49 cents/kWh (EIA, 2021)

 

 

Meet Our Expert

Dennis Pruitt, CEcD

Vice President, Business Development

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