Missouri payroll taxes 2026 come down to four numbers. One flat state rate. Employer-side unemployment insurance. Federal obligations you already know. And a local earnings tax that blindsides more small employers than any other line item on the ledger. Get these right and payroll becomes routine. Miss one — especially that local tax — and you're writing penalty checks you didn't budget for.
- State income tax: 5.3% flat rate — no brackets, same percentage for every employee
- SUI (new employer rate): ~2.376% on first $11,000 of wages per employee (employer-paid only)
- Local earnings tax: 1% in St. Louis and Kansas City — only if employees physically work inside those city limits
- FICA: 7.65% employer match (6.2% SS + 1.45% Medicare) plus FUTA at 0.6% net on first $7,000
Missouri Payroll Tax Rates at a Glance (2026)
Missouri moved to a single flat rate in 2023. For 2026, every dollar of state taxable wages is taxed at 5.3%. No tier math. No bracket lookup tables. If you've ever run payroll in a state with six income brackets, you already understand why this matters.
On the federal side, you match your employees' FICA contributions dollar for dollar: 6.2% for Social Security, 1.45% for Medicare. FUTA runs 6.0% on the first $7,000 per employee — reduced to a net 0.6% when Missouri holds its full FUTA credit, which it does. Need the full federal rundown? Small Business Payroll 101 covers the federal layer without the jargon.
The Local Tax Most Missouri Employers Miss
Two Missouri cities levy their own earnings tax. St. Louis and Kansas City each charge 1% — and the withholding obligation falls on you, the employer, for any worker physically performing work within those city limits. Both residents and non-residents are subject to it. That second part is the one that trips people up.
| City | Rate | Who Pays | Filing Frequency |
|---|---|---|---|
| St. Louis | 1% | Residents + non-residents working in city | Monthly or quarterly |
| Kansas City | 1% | Residents + non-residents working in city | Monthly or quarterly |
Only withhold local earnings tax if your employee physically works inside St. Louis or Kansas City city limits. Remote workers outside those boundaries? No local tax applies — regardless of where your business is headquartered.
A salon owner in south St. Louis County — technically outside city limits despite being minutes from downtown — owes no St. Louis earnings tax. The city boundary is what counts, not the metro area. Verify the exact municipal line before you start withholding. Getting it wrong in either direction creates problems: underpay the city and you owe back taxes; over-withhold and you've taken money from employees who didn't owe it. See payroll mistakes to avoid — local tax errors consistently rank near the top.
How to Withhold Missouri State Income Tax (Step-by-Step)
Missouri's flat 5.3% rate eliminates guesswork. Every employee, same percentage — just get the taxable wage base right and the math handles itself.
- 1 Collect Missouri Form MO W-4 from each employee at hire. Missouri uses its own withholding certificate — the federal W-4 doesn't substitute for it.
- 2 Calculate Missouri taxable wages by subtracting any allowances claimed on the MO W-4 from gross wages. Apply 5.3%. That's it.
- 3 Cross-check against Missouri DOR withholding tables in the Missouri Employer's Tax Guide, or run it through a payroll calculator each pay period to confirm deduction accuracy.
- 4 Remit withheld taxes to Missouri DOR via the MyTax portal — quarterly if your annual withholding liability is under $100/month, monthly if it exceeds that threshold.
- 5 File Form MO-W-3 (annual reconciliation) by January 31, 2027. This reconciles all withholding for the year and must accompany your W-2s. Miss it and you're looking at late-filing penalties.
Missouri Payroll Tax Deadlines & Filing Calendar 2026
A missed deposit deadline is one of the fastest ways to generate a penalty notice. Pin this calendar — and check Q4 Payroll Deadlines 2026 before the year-end crunch arrives.
| Deadline | What's Due |
|---|---|
| 15th of following month | Monthly state income tax withholding deposit (Missouri DOR) |
| April 30, July 31, Oct 31, Jan 31 | Quarterly SUI filings — Missouri Form MODES-4-7 (Missouri DOLIR) |
| January 31, 2027 | W-2s distributed to employees + filed with SSA |
| January 31, 2027 | Form MO-W-3 annual reconciliation (Missouri DOR) |
| January 31, 2027 | Federal Form 940 (FUTA annual return) |
Missouri SUI cannot be deducted from employee paychecks — it's your cost as an employer, period. New employer rate: approximately 2.376% (per Missouri DOLIR) on the first $11,000 of each employee's wages. Your rate adjusts in future years based on claims experience.
Operating across state lines? Missouri borders two states with their own withholding rules for employees who live in one state and work in another. Illinois Payroll Taxes 2026 and Iowa Payroll Taxes 2026 are the two you need.
Missouri payroll is genuinely manageable for a small employer. One flat state rate at 5.3%. Straightforward SUI. Local taxes that only bite if your team physically works in St. Louis or Kansas City. The W-2 and MO-W-3 both land January 31, 2027 — put that date on your calendar right now. Note: payroll records must reflect actual wages paid. Falsifying income documents carries serious legal penalties.
Frequently Asked Questions
Does Missouri have a state income tax in 2026?
Yes. Missouri taxes wages at a flat 5.3% for 2026 — every employee, every income level. You withhold it from each paycheck and remit to the Missouri Department of Revenue.
Do I have to withhold Kansas City or St. Louis earnings tax for remote employees?
No. The 1% local earnings tax applies only when an employee physically performs work within those city limits. A remote worker in Lee's Summit or Chesterfield owes nothing to Kansas City or St. Louis — even if your business address is in either city.
What is the Missouri SUI rate for new employers in 2026?
New employers typically pay approximately 2.376% on the first $11,000 of wages per employee, per Missouri DOLIR guidance. The rate adjusts in subsequent years based on your claims history. SUI is employer-paid — never withheld from employee wages.
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- Flat 5.3% state income tax on every dollar of wages — no brackets to manage
- SUI taxable wage base: $11,000 per employee; new employer rate ≈ 2.376%
- Kansas City and St. Louis 1% earnings tax applies only to work performed inside city limits
- W-2 and MO-W-3 both due January 31, 2027
- Missouri deposit frequency is tied to your federal schedule — if you deposit federal tax monthly, do the same for state
Can I use a pay stub generator for Missouri employees?
Yes. A pay stub generator that supports Missouri will calculate 5.3% state withholding, federal income tax, FICA, and local earnings tax (if applicable) in one step — giving every employee a clear breakdown of their gross pay, deductions, and net pay. Always verify the figures match your actual payroll deposits.