Missouri voters decisively rejected a ballot measure aimed at eliminating the state's individual income tax in the Tuesday primary election. The measure, identified as Amendment No. 5, faced widespread opposition, with results showing an 84% rejection rate.
Supporters of the proposed amendment, including Republican Governor Mike Kehoe, had promoted it as a "generational opportunity" for the state. However, opponents argued that eliminating the income tax would disproportionately benefit high earners while negatively impacting essential public services such as schools, prisons, and social programs. Concerns were also raised about a potential increase in other taxes, particularly sales taxes, to compensate for the lost revenue.
Approximately 63% of Missouri's general revenue for fiscal year 2025 is projected to come from individual income taxes. State Representative Bishop Davidson, who sponsored the measure, did not specify alternative revenue sources prior to the vote. The Missouri REALTORS group was among the leading organizations that opposed the change, contributing to campaigns against the amendment.
Missouri currently has a graduated individual income tax system with rates ranging from 2% to 4.7%. The average annual state and local tax collection per capita in Missouri is $5,286.
Nine other states in the U.S. currently do not levy an individual income tax. These states, including Florida, Texas, and Washington, often rely on other tax revenues. For example, sales tax constitutes about 79% of Florida's total tax revenue, compared to 26% in New York, which maintains an income tax.
Missouri is also among the states that have not fully adopted federal tax breaks, meaning residents are subject to state taxes on earnings like tips and overtime.