Missouri Retirement Taxes 2026: SS Exempt, Capital Gains Too

2026 edition · statute-cited · part of Clear Money Guide’s 51-state retirement tax series. This guide covers state taxes on retirement income and estate transfers; property and sales taxes vary by county and are outside its scope.

Updated July 24, 2026. Quick answer: Mostly yes — and more so than most guides say. Social Security is 100% deductible regardless of income (since TY2024, when SB 190 removed the old income limits — RSMo §143.125), and public pensions are exempt up to the maximum annual Social Security benefit per taxpayer ($48,967 for 2026 per the DOR’s table, indexed; reduced by SS deductions claimed). And new for taxable portfolios: Missouri no longer taxes capital gains — individuals subtract 100% of federally reported capital gains starting with tax year 2025 (HB 594, RSMo §143.121.3(14)(a)). The honest gap: private pensions, 401(k)s and IRAs get only a $6,000 exemption — and only if Missouri AGI is at or below $25,000 single / $32,000 joint — with the rest taxed at graduated rates topping out at 4.7%.

What passed and what died (the 2025–26 scorecard)

Missouri coverage is littered with bills that didn’t make it. HB 426 (2025), which would have made private retirement income 100% exempt starting in 2026, died — any guide describing a full private-pension exemption for 2026 is wrong. What did pass is bigger news for retirees with taxable portfolios: HB 594, signed July 10, 2025, lets individuals subtract 100% of income reported as capital gains on their federal return when computing Missouri AGI, retroactive to tax years beginning on or after January 1, 2025 (RSMo §143.121.3(14)(a)) — the Missouri Department of Revenue describes it as the first full capital-gains exemption in any state with an individual income tax. It covers short- and long-term gains alike but must be claimed on Form MO-A, applies only to individuals (trusts and entities paying the elective pass-through-entity tax cannot claim it), and does not reach items taxed federally as ordinary income, such as depreciation recapture. Military retirement pay is separately 100% deductible (RSMo §143.174).

How Missouri taxes retirement income (statute-cited)

Income tax	Graduated to 4.7% top rate (after trigger reductions)
Social Security	Not taxed — 100% deduction (62+ and disability), no income limits since TY2024 (RSMo §143.125)
Public pensions	Exempt up to the maximum annual SS benefit per taxpayer ($48,967 for 2026, indexed), no income limits; reduced by SS deductions claimed (RSMo §143.124)
Private pension / 401(k) / IRA	Only a $6,000 exemption, and only if MO AGI ≤ $25,000 single / $32,000 MFJ; otherwise fully taxable
Military retirement	100% deductible (RSMo §143.174)
Estate / inheritance tax	None

Probate: a statutory minimum, not a maximum

Missouri’s probate schedule runs the unusual direction: RSMo §473.153 sets statutory minimum fees for both the personal representative and the attorney — a floor, not a ceiling — computed on personal property administered plus proceeds of court-ordered real-estate sales: 5% of the first $5,000; 4% of the next $20,000; 3% of the next $75,000; 2.75% of the next $300,000; 2.5% of the next $600,000; 2% above $1,000,000. Worked example — $500,000 of personal property: $14,050 minimum per role, so roughly $28,100 for PR plus attorney before the court considers extra compensation. Small estates: up to $40,000 (net of liens) via affidavit (RSMo §473.097; 30-day wait, bond generally required, published notice above $15,000). Context: probate cost by state · will vs. trust calculator.

The verdict for 2026

For a retiree living on Social Security plus a public pension — teachers, police, federal employees — Missouri is close to tax-free, and the capital-gains change extends real relief to taxable-portfolio retirees. The gap is the private-401(k) retiree, whose withdrawals are taxed at up to 4.7% with an exemption that’s trivial and income-tested. No death taxes — but the probate minimum schedule argues for trust-based planning more strongly than in reasonable-fee states.

Missouri vs. common alternatives

State	Social Security	Pension / 401(k) / IRA	Estate tax	Inheritance tax
Missouri	Not taxed	Public pensions exempt to SS max; private capped at $6,000 (income-tested)	None	None
Illinois	Not taxed	Not taxed (all retirement income exempt)	Yes — $4M cliff, not indexed	None
Tennessee	Not taxed	Not taxed (no income tax)	None	None
Florida	Not taxed	Not taxed (no income tax)	None	None

Comparison rows summarize general rules; see our 51-state retirement tax table for statute-cited detail.

Considering a Roth conversion? The converted amount is taxed as ordinary income in the year you convert, and Missouri may treat it differently from the retirement income above — see how all 51 jurisdictions tax Roth conversions.

Finding a financial advisor in Missouri

Per the SEC’s July 2026 Investment Adviser roster, Missouri has 193 SEC-registered advisory firms (#22 nationally) managing $3.57 trillion (#9 by AUM). Full breakdown: Missouri advisor statistics. Reviewing fee structures: fee-drag calculator.

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What probate costs in Missouri

Missouri is one of only seven jurisdictions that publish an actual statutory percentage schedule, so the probate fee can be computed exactly rather than estimated. Whether its small-estate route of $40,000 reaches real property is not clearly stated in the statute, so treat that as unresolved rather than permission. Full detail with the governing statute, the court filing fee and the threshold: Missouri probate cost. To price a specific estate, use the probate cost calculator.

Cite or share this guide

Suggested citation: Clear Money Guide, “Missouri Retirement Taxes (2026 edition),” statute-cited; clearmoneyguide.com/missouri-retirement-taxes/. Free to cite with attribution and a link. Data verified July 23–24, 2026 against state statutes, session laws, and revenue-department guidance.

Is Missouri Tax-Friendly for Retirees? (2026: Social Security Exempt — and Now Capital Gains Too)