New Income Tax Subtraction

Capital Gains Income Tax Subtraction (Section 143.121) This legislation allows 100% of the income reported as capital gains for federal tax purposes to be subtracted when determining Missouri adjusted gross income. Effective on January 1, 2025, for individual income tax. This subtraction will be effective for corporations starting January 1st of the tax year following the reduction of the individual income tax to 4.5%. The individual income tax rate for tax year 2025 is 4.7%.

For additional information, please check out the FAQs - Capital Gains Subtraction .