Modifies provisions regarding income taxes, including the imposition of a 4% flat income tax

Taxes

Passed Legislature

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

Sponsor: Schroer, Nick; House handler: N/A
Last action: 2026-01-27
Official status: Second Read and Referred S Economic and Workforce Development Committee
Effective date: 2026-08-28

Plain English Breakdown

The plain English breakdown is still being put together. The official documents below are already here.

Bill History

2026-01-27 S239
Second Read and Referred S Economic and Workforce Development Committee
2026-01-07 S73
S First Read
2025-12-01 Missouri House of Representatives and Missouri Senate
Prefiled

Official Summary Text

The following summaries of this bill are available:

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Introduced

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SB 1237 - Current law imposes a graduated income tax rate and authorizes reductions in the top rate of income tax contingent on certain state revenue collections, with an eventual top rate of 4.5%. This act provides that, for all tax years beginning on or after January 1, 2027, there shall be a flat income tax rate of 4% on all taxable income.

This act also provides for additional reductions in the rate of tax until the income tax is eliminated. The reductions shall be equal to 0.1% and shall occur when the amount of net general revenue collected in the previous fiscal year exceeds the highest amount of net general revenue collected in any of the three fiscal years prior to such fiscal year by at least $120 million. (Section 143.011)

Current law also authorizes an income tax deduction for a portion of federal income taxes paid. This act eliminates such deduction beginning with the 2027 tax year. (Section 143.171)

This act is identical to SB 5 (2025 First Extraordinary Session) and is similar to SB 220 (2025).
JOSH NORBERG