Missouri to cut income tax rate in 2025, marking fourth straight year of reductions

JEFFERSON CITY, Mo. (AP) — Missouri residents will get another tax cut in 2025. Gov. Mike Parson’s administration said Tuesday that the top income tax rate will be reduced from 4.8% to 4.7% on Jan. 1. It’s the result of a 2022 state law that set series of benchmarks to trigger tax cuts in future years. When the state’s 2024 revenue figures were released earlier this month, it was not immediately clear that they were high enough to cause a tax cut. But the formula also takes into account money that is set aside for savings, which helped Missouri reach the threshold.