Missouri Payroll Compliance
Every rate, wage base, and city tax layer Missouri employers need for 2026 — sourced from the Dept. of Revenue and Dept. of Labor — including the twin 1% earnings taxes in Kansas City and St. Louis, and a genuinely rare SUI wage base decrease.
Minimum Wage & Hours
Missouri’s minimum wage is $13.75/hour under Proposition A, a 2024 ballot initiative that also introduced Missouri’s first-ever mandatory paid sick leave requirement, replacing the state’s prior CPI-indexed rate schedule.
| Item | 2026 Value | Notes |
|---|---|---|
| Minimum wage | $13.75/hr | Set by Proposition A (2024); substantially above the federal floor |
| Tipped cash wage | $6.88/hr | Tips must bring total to $13.75 |
| Paid sick leave | Mandatory | New requirement introduced by Proposition A |
| Overtime rule | 40 hrs/week | Federal FLSA; no separate state daily overtime rule |
Kansas City & St. Louis Earnings Tax
Both Kansas City and St. Louis levy a 1% earnings tax on wages earned within city limits — applying to residents and nonresidents alike. Missouri has no reciprocity agreement with Kansas, so Kansas City metro employers must handle cross-border withholding carefully.
| City | Rate | Notes |
|---|---|---|
| Kansas City | 1.0% | Applies to residents and nonresidents working in city limits |
| St. Louis | 1.0% | Applies to residents and nonresidents working in city limits |
| Kansas reciprocity | None | No agreement exists between Missouri and Kansas; KC-metro employers must track both states |
State Income Tax Withholding
Missouri’s top income tax rate has declined to 4.7% under phased legislative cuts — but the top bracket kicks in at only around $9,436 of taxable income, so most working residents pay close to the maximum rate on the bulk of their earnings.
| Item | 2026 Value | Notes |
|---|---|---|
| Top marginal rate | 4.7% | 8 graduated brackets from 0% to 4.7% |
| Top bracket threshold | ~$9,436 | Very low threshold; most workers pay near the top rate on most income |
| Standard deduction (single) | $16,100 | Mirrors the federal standard deduction |
| Supplemental wage rate | 4.7% flat | Optional flat method for bonuses paid separately from regular wages |
| Local income tax | KC & St. Louis only | 1% earnings tax; no other Missouri city imposes one |
| Dual-agency structure | DOR + DES | Dept. of Revenue handles withholding; Division of Employment Security handles SUI |
Unemployment Insurance (SUI)
Missouri is one of only four states — alongside Iowa, Louisiana, and Oklahoma — where the SUI taxable wage base decreased for 2026. Per Missouri’s own Dept. of Labor, the base dropped to exactly $9,000, down from $9,500.
| Item | 2026 Value | Notes |
|---|---|---|
| SUI taxable wage base | $9,000 | Down from $9,500 in 2025, per RSMo §288.036(2) |
| New employer rate | 2.7% | 1.0% for qualifying 501(c)(3) nonprofits and government entities |
| Wage base rule | Adjusts $500 down / $1,000 up | Tied to the Unemployment Compensation Trust Fund balance; floor $7,000, ceiling $13,000 |
| Administering agency | Division of Employment Security | Part of the Missouri Dept. of Labor and Industrial Relations |