Filing taxes may look different for some Missouri retirees this year.

As of Jan. 1, 2024, Social Security benefits are fully exempt from state income tax, which will be reflected in the taxes filed in 2025. 

This change is due to the passage of Missouri Senate Bill 190 in 2023. Income limits previously determined the amount of Social Security benefits and public pension payments that were subject to state income tax, though SB190 removed these income limits for Social Security, making all Social Security income tax-free at the state level. As far as public pension benefits, the income limits have also been lifted, but state taxes have not been fully eliminated.

Missouri retirees are expected to save up to $309 million annually due to this change. 

Though the majority of states across the U.S. have also adopted exempting Social Security benefits from state taxes, Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont and West Virginia continue to do so. 

Depending on overall income, however, Missouri retirees may still owe federal taxes on a portion of their benefits. For individual filers earning between $25,000 and $34,000, or joint filers earning between $32,000 and $44,000, up to 50% of benefits may be federally taxed. Up to 85% of benefits could be taxable for individuals with higher incomes.