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Missouri’s income tax rate is reducing annually (4.95% in 2024, 4.8% in 2025), and Kansas City and St. Louis each add a 1% earnings tax for work within city limits. Rippling handles MO DOR, DES, and both city earnings taxes.
Missouri is a major Midwestern economy anchored by Kansas City and St. Louis, with strengths in financial services, healthcare, agriculture, and a growing technology sector. Missouri payroll is characterized by a progressively reducing state income tax (4.95% in 2024, 4.8% from January 2025), earnings taxes in Kansas City (1%) and St. Louis (1%), and workers’ compensation required for 5+ employees. Missouri is a right-to-work state with no state-mandated paid leave programs.
Rippling’s Missouri payroll module provides:
| Contribution | Rate | Notes |
|---|---|---|
| FUTA | 6.0% (net 0.6%) | After SUTA credit; first $7,000 |
| MO SUI (DES) | New employer 2.376% | On first $11,000 of wages (2024) |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% | No wage base limit |
| Workers’ Compensation | Varies by risk class | Required for 5+ employees (1+ in construction) |
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| Contribution | Rate | Notes |
|---|---|---|
| Federal Income Tax | Graduated 10–37% | Per W-4 |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% + 0.9% surtax | Surtax above $200K single |
| Missouri State Income Tax | Up to 4.95% (2024); 4.8% (2025) | Graduated brackets; top rate reducing annually |
| Kansas City Earnings Tax | 1% | On wages earned in Kansas City (residents and non-residents) |
| St. Louis Earnings Tax | 1% | On wages earned within St. Louis city limits |
| Missouri Income | MO Rate |
|---|---|
| Up to $1,121 | 0% |
| $1,122–$8,968 (graduated) | 2%–4.8% |
| Above $8,968 | 4.95% (2024); 4.8% (2025+) |
MO withholding remitted to MO DOR. Kansas City and St. Louis earnings taxes (1% each) withheld separately. Annual MO-W3 reconciliation.
Final Pay: Missouri requires final pay immediately upon discharge, or on the next scheduled payday if the employee resigns. Accrued vacation payout governed by employer written policy.
Kansas City imposes a 1% earnings tax on wages earned by anyone working or residing in Kansas City. St. Louis imposes a 1% earnings tax on wages earned within city limits. Both require employer withholding and quarterly remittance. These are in addition to Missouri state income tax. Rippling tracks earnings tax for employees with work locations in Kansas City or St. Louis.
Missouri’s top income tax rate is reducing annually: 4.95% in 2024, reducing to 4.8% in 2025. Further reductions are scheduled if revenue targets are met, with a potential floor of 4.5%. Rippling updates Missouri withholding rates annually as reductions take effect.
Missouri’s minimum wage is $12.30/hour (January 2024), rising to $13.75/hour in January 2025 under a voter-approved ballot measure. Kansas City and St. Louis do not have separate local minimums above the state floor.
Missouri requires workers’ comp coverage for employers with 5 or more employees in most industries (construction: 1+). The Missouri Division of Workers’ Compensation administers the system. Private market coverage is available.
