Living in Missouri has many advantages from the great barbecue, sports teams and low cost of living just to name a few. Part of the reason for the low cost of living is Missouri ranks No. 9 nationally for the lowest tax burden on its citizens.
With Tax Day arriving on April 18, residents of a state have likely realized the amount of money they owe the US government in taxes from 2022. For those looking to change their residence to lighten the blow, BetMissouri.com — which provides the best coverage of Missouri sports betting issues — put together the best states to avoid tax burdens utilizing TaxFoundation.org.
The total tax burden of the state is recognized by including the 2022 Property Tax Burden, 2022 Individual Income Tax Burden and 2022 Total Sales Tax Burden for each state.
Best States To Live In To Avoid Tax Burdens
When betting becomes legal in the state, BetMissouri.com will be home to Missouri sportsbook promos.
Missouri Residents Enjoy Low Property Taxes
Missouri’s total tax burden when adding up property, individual income and sales tax comes out to 7.11%, coming in just below Oklahoma’s 7.12%.
According to TaxFoundation.org, the reasons for that are the state’s 4.0% corporate income tax rate, its 4.225% state sales tax rate, and a local sales tax rate that tops out at 5.763%. When it comes to property tax, Missouri ranks 40th at 2.16% according to wallethub.com. Maine has the highest property tax burden at 5.33%.
Alaska has the lowest tax burden at 5.09%. The top five states with the highest combined tax burdens are New York (12.47%), Hawaii (12.31%), Maine (11.14%), Vermont (10.28) and Connecticut (9.83%).
Missouri’s neighbors Illinois (9.38%) and Iowa (9.15%) are in the top 10 at No. 9 and No. 10.
Missouri’s state income tax ranks at No. 45 in the nation at $2,447 in state collections per capita according to the 2021 data. Vermont comes in at No. 1 in state income tax with $6,356 in collections per capita, according to TaxFoundation.org.
When it comes to local tax burden as a share of state income, Missouri has the 13th smallest at 9.3% at $4,953. New York has the highest at 15.9% with $12,083 total tax burden per capita as a percentage of income.
When it comes to state income tax, Missouri ranks near the middle of the pack of the states that collect that tax at No. 28 with $1,251 in collections per capita for the 2021 fiscal year, according to TaxFoundation.org.
Missouri’s ranking for low tax burden comes after Gov. Mike Parson signed SBs 3 & 5 and HB 5 into law on Oct. 5, 2022. That legislation was created in a special session called to pass income tax cuts and extend agriculture tax credits.
According to the governor’s website, that legislation reduced the top individual income tax rate from 5.2 to 4.95%, which would give Missourians an approximate 5% decrease in their tax liability.
“Every Missourian can support sending less of their money to the government, and we trust Missourians to make decisions with their own money,” Parson said at the time.
If you're looking to see how much you'll owe in gambling taxes, we provide a Missouri gambling tax calculator.
Author
Douglas Pils has been a sports journalist for 30 years in Texas, Arkansas and New York having worked for the San Antonio Express-News, the Associated Press, The Dallas Morning News and Newsday. He most recently ran the Student Media Department at Texas A&M for eight years.
