Taxes

In keeping with statewide trends, St. Joseph consistently ranks low in several tax areas, as noted below:

Personal Property Tax, St. Joseph:
Taxing Entity* Tax Rate / Per $100**
City of St. Joseph 1.14
Buchanan County .075
St. Joseph School District 4.12

*Not all taxes would apply. Depends on location of business or home
**All Property is Assessed @ 100% Valuation

Sales Tax
City County State
2.875 % 1.35 % 4.225 %

For more information about how personal property is assessed/valued in St. Joseph, Missouri, visit the Buchanan County Assessor’s Office at: http://www.co.buchanan.mo.us/offices/assessor

 

Aggressive Tax Abatement:
For eligible quality job creation projects, St. Joseph provides aggressive tax abatement to encourage business cluster target companies to invest and grow in St. Joseph.

Personal Income Tax

  • Missouri’s individual income tax rates are graduated from a low of 1/1/2 percent on a taxable incomes of $1,000 or less, to a high of $315 plus 6 percent on taxable income in excess of $9,000.
  • Taxable income may be reduced by 100 percent of federal income tax payments, $1,200 for each dependent, $2,100 for each personal exemption, and by the federal standard deduction or Missouri itemized deduction.

Corporate Income Tax: Lower than Most States

  • State law sets the corporate income tax rate at 6.25 percent of net taxable income earned by a business in Missouri. This is lower than most of the 46 states by imposing a corporate income tax.
  • In addition, Missouri allows 50 percent of federal income tax payments to be deducted before computing taxable income.
  • Using this deduction, a corporation with a taxable income of $1 million would have a Missouri effective tax rate of only 5.2 percent.

Missouri Taxable Income: Choose the Formula for Lesser Liability

  • An important tax advantage for Missouri businesses is the amount of income considered taxable-only income earned in Missouri is taxed.
  • Two allocation options are offered for calculating this income: (1) the three factor formula based on sales, property and payroll, or (2) the single-factor formula, based only on sales.
  • Missouri is the only state that permits companies to choose the formula that results in the lesser corporate income tax liability. This means that companies are not penalized for locating property and jobs in Missouri as they are in the other states.

Additional Tax Information:

Unemployment Insurance

In Missouri, the unemployment insurance tax is levied on the first $13,000 of an employee’s annual compensation. The taxable wage base can increase in increments of $1,000 or lower by increments of $500, depending on the state’s unemployment fund balance, but it is prohibited to go below the federally required minimum of $7,000. In 2011, employers with a credit balance pay tax rates from 0.0 percent to 3.51 percent. The entry rate for an employer who has been recently established is 3.51 percent, excluding employers in the construction (4.22 percent) and mining related (3.934 percent) industries. The contribution rate for federal employers is 1.30 percent.

An employer may receive an unemployment insurance rate below the entry rate based on at least on year of benefit chargeability. For more information, visit the Missouri Department of Labor and Industrial Relations’ Division of Employment Security online.

 

Workers’ Compensation

In Missouri, all companies with at least five employees must offer workers’ compensation insurance to aid employees in cases like accidental injury on the job or illness. For employers in the construction field, they are required to provide workers’ compensation insurance for their employees. Since 1994, workers’ compensation insurance rates are set by each insurance company in a competitive environment and companies can search for the lowest rates.

The maximum weekly benefit for temporary total disability payments are up to two-thirds of an employee’s average wage per week. Additional payments are required if the employee has a permanent impairment or cannot return to work. Missouri’s maximum weekly benefit is $799. For more information about workers’ compensation in Missouri, as well as surcharges or additional taxes, contact the Missouri Division of Workers’ Compensation at www.dolir.mo.gov/wc.

See Incentives for how we can make these low taxes even lower for quality job growth and capital investment.

The data contained in this website is for information purposes.  Although steps have been taken to guard its accuracy and up-to-date nature, the St. Joseph Chamber of Commerce assumes no legal responsibility for the informational content contained herein.