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Missouri Pension Tax Withholding (2026): Form and Default Rate

Updated October 16, 2026. Quick answer: Only if you ask. The Department of Revenue says: “Withholding is voluntary for the recipient”. The plan administrator must withhold if the recipient requests it, on Form MO W-4P.

Missouri pension withholding at a glance

ItemWhat the documents say
Is state withholding required on regular pension payments?No. It is voluntary for the recipient, and the administrator must withhold if you request it
Default rate if you give the payer no formNo default. You enter a dollar amount to withhold each month, which cannot be less than $10.00
Lump sum or one-time paymentThe employer guide says Missouri follows the federal guidelines for lump sum and periodic distributions and that on lump sum distributions the rate is 4.8 percent; it does not say how that squares with the voluntary rule for pension recipients
Form to start, change or stop itForm MO W-4P (revised November 2013), given to the plan administrator
Changed for 2026?No change stated

What the Missouri documents say

Missouri’s Department of Revenue describes withholding on pension and annuity income as voluntary for the recipient, with the plan administrator required to withhold if the recipient requests it. The employer guide limits the election to a Missouri resident whose income is taxable in Missouri, and says civil service annuitants elect by contacting the Office of Personnel Management.

On Form MO W-4P you check line 2 and enter a monthly amount to start withholding, or check line 1 to elect no withholding. The form says: “The amount you enter cannot be less than $10.00 per month”. To change an election you contact the plan administrator.

What a mover should know

This page is about Missouri as a state of residence. An instruction line written for a nonresident or part-year filer is not the rule for a resident, and none of the documents read settles a part-year or two-state case, so check each state’s own rule. The federal side is the same everywhere; CMG’s federal 20% withholding on a pension lump sum page covers it, state tax withholding on IRA and 401(k) withdrawals in Missouri covers the account side, and state withholding on retirement withdrawals lists the other states checked.

What the documents do not say

  • The Form MO W-4P read is the November 2013 revision, and the Department’s employer guide read is the 2024 edition. The documents read cite no statute. The employer guide gives a 4.8 percent rate for lump sum distributions but does not say how it applies to a pension recipient who has not asked for withholding.

Common mistakes

  • Assuming the payer is withholding for the state because it withholds for the IRS: in a voluntary state nothing is withheld until you give the payer the state’s form.
  • Assuming the answer for one state applies to another, or that state withholding settles the state tax owed at filing.

Related: state tax withholding on IRA and 401(k) withdrawals in Missouri, Missouri retirement taxes, whether Missouri taxes pensions, state withholding on retirement withdrawals, and retirement withholding calculator.

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Sources

Sources: the primary documents linked above, read on October 16, 2026. General information, not tax advice. Your own facts decide the outcome, and a tax professional or the state agency itself is the right place to confirm anything consequential.

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