Updated October 5, 2026. Quick answer: Yes. Missouri starts from federal adjusted gross income, and the Department of Revenue says “The individual income tax rate for tax year 2025 is 4.7%.” Interest on U.S. obligations is subtracted, and interest on other states’ bonds is added back.
How Missouri treats dividends and interest
| Item | What the documents say |
|---|---|
| Treatment | Taxed on the graduated chart |
| Top bracket | “$256 plus 4.7% of the excess over $9,191” |
| Starting point | The statute begins with “federal adjusted gross income subject to the modifications in this section.” |
| Other states’ bonds | Form MO-A adds back interest on an “obligation of a state or political subdivision other than Missouri” |
| Missouri bonds | The statute says the add-back “shall not apply to interest on obligations of the state of Missouri” |
| U.S. obligations | “Interest from direct obligations of the U.S. Government, such as U.S.” savings bonds and Treasury bills, is subtracted and must be identified by specific security |
| Mutual funds | A distribution from a fund that invests exclusively in direct U.S. Government obligations is exempt; a fund that holds both direct and indirect obligations gets only the direct portion |
A $20,000 example
Taxable dividends and interest of $20,000 that all fall in the top bracket add $20,000 x 4.7% = $940 of Missouri tax for 2025. Income in lower brackets is taxed at lower rates.
What changes in 2026
The 2025 legislative changes document prints 4.7% for tax year 2025 and refers to a later reduction to 4.5%, without stating the 2026 rate.
Federal rules
The state’s treatment sits on top of the federal one. Qualified dividends and ordinary dividends are sorted out on the Form 1099-DIV, as the site explains in Box 1a and 1b: ordinary versus qualified dividends, and interest is reported as covered in 1099-INT Box 1. The IRS explains the federal side in Topic no. 403, Interest Received and Topic no. 404, Dividends.
Related: whether Missouri taxes capital gains, whether Missouri taxes pensions, how Missouri taxes retirement income, dividends and interest tax by state, and how tax-exempt interest is reported.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
Compare vetted advisors for your investments
If your portfolio is $250,000 or more, this connects you (free, with no obligation to hire anyone) with 2 to 3 vetted advisors.
Before you start, what actually happens. The matching service is run by WiserAdvisor, an independent advisor-matching company. It opens on their site, asks for your ZIP code and a few questions, and matches you with 2 to 3 vetted advisors. It is free to you.
WiserAdvisor states the service is built for portfolios of $250,000 and above. By submitting, you consent to emails, phone calls and text messages from WiserAdvisor and up to three advisors, so expect to be contacted. Clear Money Guide may earn a referral payment for a qualifying completed form, whether or not you ever hire anyone.
Opens on WiserAdvisor’s site in a new tab.
See how an advisor weighs your portfolio
Price the destination before you decide. The matching service below introduces you to advisers who pay to meet you.
Before you start, what actually happens. The form is run by Kapitalwise, our advisor-matching partner. Kapitalwise sends your details to advisers who pay for the introduction, so expect calls and texts. Clear Money Guide may earn a referral payment for a qualifying submitted form, whether or not you ever hire anyone. This is free to you and there is no obligation to hire anyone.
The Kapitalwise form opens here; you stay on this page.
What happens when you press the button
It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Prefer flat-fee or hourly pricing instead? Compare ranges here.
Answer againSources
- 2025 MO-1040 Individual Income Tax Return Instructions: https://dor.mo.gov/forms/MO-1040 Instructions_2025.pdf
- 2025 Tax Legislative Changes: https://dor.mo.gov/taxation/individual/tax-types/income/year-changes/documents/2025-Tax-Legislative-Changes.pdf
- RSMo Section 143.121 Missouri adjusted gross income: https://revisor.mo.gov/main/OneSection.aspx?section=143.121
Sources: the primary documents linked above, read on October 5, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.