HB1703 • 2026

Modifies provisions relating to an income tax deduction for military members engaged in certain civilian federal service

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Christensen, Mazzie (002)
Last action: 2026-05-15
Official status: 05/15/2026 - Referred: Emerging Issues(H)
Effective date: 2026-08-28

Plain English Breakdown

The official source material does not provide specific details on the exact amount of income that can be deducted each year leading up to 2024.

Changes to Tax Deduction for Military Members

This bill modifies Missouri's tax deduction rules for certain types of income received by military members.

What This Bill Does

Removes the existing section about tax deductions for military pay and replaces it with new rules.
Allows military members to deduct a percentage of their salary or compensation from their Missouri taxable income if they perform specific duties like inactive duty training (IDT) or annual training status (AT).
Increases the deduction percentage each year, starting at 20% in 2020 and reaching 100% by 2024.
Limits the tax deduction for military members who receive civilian federal service pay after January 1, 2027.

Who It Names or Affects

Military members of the National Guard or reserve components of the U.S. Armed Forces.
People filing combined returns with their spouse if one is a military member.

Terms To Know

Inactive duty for training (IDT): A type of service where members of the National Guard perform training while not on active duty.
Annual Training Status (AT): The period when members of the National Guard are required to attend annual training exercises.

Limits and Unknowns

After January 1, 2027, military members will not be able to deduct income from civilian federal service positions.
The bill does not specify how much income can be deducted each year before the full deduction is allowed in 2024.

Bill History

2026-05-15 Missouri House of Representatives and Missouri Senate
Referred: Emerging Issues(H)
2026-01-08 Missouri House of Representatives and Missouri Senate
Read Second Time (H)
2026-01-07 Missouri House of Representatives and Missouri Senate
Read First Time (H)
2025-12-01 Missouri House of Representatives and Missouri Senate
Prefiled (H)

Official Summary Text

Modifies provisions relating to an income tax deduction for military members engaged in certain civilian federal service

Current Bill Text

Read the full stored bill text

SECOND REGULAR SESSION
HOUSE BILL NO. 1703
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE CHRISTENSEN.
4742H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o repeal section 143.175, RSMo, and to enact in lieu thereof one new section relating to an
income tax deduction for certain military pay .
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 143.175, RSMo, is repealed and one new section enacted in lieu
2 thereof, to be known as section 143.175, to read as follows:
143.175. 1. For all tax years beginning on or after January 1, 2020, for purposes of
2 calculating the Missouri taxable income as required under section 143.01 1, a percentage of
3 the income received by any person as salary or compensation:
4 (1) In performance of inactive duty for training (IDT) of the National Guard or annual
5 training status (A T) of the National Guard;
6 (2) In reserve components of the Armed Forces of the United States; [ or ]
7 (3) For all tax years beginning on or after January 1, 2025, in the form of a bonus
8 from the National Guard or a reserve component of the United States Armed Forces for
9 joining, reenlisting, or for any other reason;
10
11 and to the extent that such income is included in the federal adjusted gross income, may be
12 deducted from the taxpayer's Missouri adjusted gross income to determine such taxpayer's
13 Missouri taxable income. If such person files a combined return with a spouse, a percentage
14 of any military income received while engaging in the performance of National Guard or
15 reserve military duty may be deducted from their Missouri combined adjusted gross income.
16 Such military income shall be deducted as follows:
EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language.
17 (a) For the tax year beginning on or after January 1, 2020, twenty percent of such
18 military income;
19 (b) For the tax year beginning on or after January 1, 2021, forty percent of such
20 military income;
21 (c) For the tax year beginning on or after January 1, 2022, sixty percent of such
22 income;
23 (d) For the tax year beginning on or after January 1, 2023, eighty percent of such
24 income;
25 (e) For all tax years beginning on January 1, 2024, and thereafter , one hundred
26 percent of such income.
27 2. Notwithstanding the provisions of this section or any other provision of law to the
28 contrary , for all tax years beginning on or after January 1, 2027, the deduction authorized
29 by this section shall [ not ] apply to compensation received while engaging in civilian federal
30 service, including civil service positions requiring the wearing of military uniform and
31 military af filiation.
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