As of tax year 2024, Missouri stopped taxing Social Security benefits entirely. The old income cap is gone, so retirees 62 and older keep 100 percent of their benefits no matter how high their income. Pensions get exemptions too, but the size depends on the type: a public pension gets a large exemption, while a private pension gets only a modest one that is still income-tested. The Missouri retirement income tax now lands lightly on most seniors, though the rules differ sharply between public and private pensions.

This guide breaks down how Social Security, public pensions, private pensions, and IRA or 401(k) income are each treated, and where the sharpest differences fall.

In This Guide

Missouri Retirement Income Tax at a Glance

Missouri treats your retirement income in distinct buckets, and the bucket matters. Social Security is fully out. Public pensions get a large exemption tied to the maximum Social Security benefit. Private pensions, IRAs, and 401(k)s share a much smaller exemption that only lower-income filers get in full. The table below lays out each one.

Income type Treatment Limit or amount Income test
Social Security Fully exempt (62+) 100% of benefits None; cap removed for 2024+
Public pension Exempt up to a cap Up to the maximum Social Security benefit ($47,633 for 2025; $46,381 for 2024) No income test, but the exemption is reduced by any Social Security deduction taken
Private pension Limited exemption Up to $6,000 per taxpayer Full $6,000 only below $25,000 Missouri AGI (single, head of household, qualifying widow(er)), $32,000 (married filing combined), or $16,000 (married filing separately); phases out dollar for dollar above
IRA and 401(k) income Treated as private pension Shares the $6,000 exemption Same income test as private pensions
Senior-specific exclusion The pension exemptions serve this role See above See above

Whatever retirement income falls outside the exemptions above is taxed under Missouri's regular income tax schedule.

Missouri Retirement Income Tax: How It Works

Missouri builds its system around the type of retirement income rather than a single income threshold. The biggest change came for tax year 2024, when the state removed the adjusted-gross-income limit that used to phase out the Social Security deduction. The Missouri Department of Revenue confirms that taxpayers 62 and older, or those receiving Social Security disability, now deduct 100 percent of their benefits regardless of income.

Pensions are where the detail lives. Missouri splits them into two tracks. A public pension track, for government retirement systems, carries a large exemption pegged to the maximum Social Security benefit. A private pension track carries a smaller, income-tested exemption that also absorbs IRA and 401(k) withdrawals. Knowing which track your income falls into is the key to estimating what Missouri will tax.

Social Security

Beginning with the 2024 tax year, Missouri no longer taxes Social Security benefits. The previous AGI-based phase-out was removed, so taxpayers 62 and older (or receiving Social Security disability) deduct the full amount of their benefits from the Social Security Administration no matter how high their other income runs.

This is a clean rule with no income test attached. A retiree with a six-figure pension keeps the same 100 percent Social Security exemption as a retiree living on benefits alone. It is one of the simpler pieces of the Missouri retirement income tax, and one of the most valuable for higher-income seniors who used to lose the deduction.

Public Pensions

Missouri offers a public pension exemption for income from federal, state, or local government retirement systems. The exemption runs up to the maximum Social Security benefit amount: $47,633 for tax year 2025 and $46,381 for tax year 2024. That figure adjusts over time as the maximum benefit changes.

For many retired teachers, state employees, and local government workers, this exemption covers all or nearly all of their pension. If your public pension exceeds the cap, the excess is taxable under Missouri's regular schedule. One catch worth knowing before you count on the full figure: the public pension exemption is reduced by the amount of any Social Security deduction you take. The exemption is generous precisely because it is tied to a Social Security figure rather than a flat dollar amount, so it tends to keep pace with benefit growth.

Private Pensions, IRAs, and 401(k)s

Here the rules tighten. Private pensions get a maximum exemption of $6,000 per taxpayer, and unlike the Social Security deduction it kept its income test. The 2024 change did not touch the private pension calculation on Form MO-A, Part 3-Section B, so the full $6,000 is allowed only where Missouri adjusted gross income is under $25,000 (single, head of household, or qualifying widow(er)), $32,000 (married filing combined), or $16,000 (married filing separately). Above those ceilings the exemption drops by one dollar for every dollar of excess income, so a single filer at $31,000 of Missouri AGI gets nothing. It is a per-taxpayer amount, so a married couple who both have private-pension income can each claim their own, subject to that test.

Crucially, IRA and 401(k) distributions are treated under this private pension exemption, not the public one. So if your retirement income comes mostly from a 401(k) or traditional IRA rather than a government pension, you are working with the smaller $6,000 figure and the income test that goes with it. For most retirees with meaningful account balances, that means a large share of IRA and 401(k) withdrawals is generally taxable in Missouri.

If you are weighing how much to draw from these accounts to cover care, retirement accounts for care walks through the tradeoffs.

Putting It Together

The practical takeaway is that two retirees with identical total income can owe very different amounts to Missouri depending on the source. A retired state employee whose income is mostly a public pension and Social Security may owe almost nothing. A retiree with the same income drawn from a 401(k) faces the small $6,000 private-pension exemption, may be priced out of it entirely by the income test, and is taxed on most of the rest.

Picture two single retirees with the same total retirement income. The first draws it from a state teacher's pension; the public pension exemption reaches up to the maximum Social Security benefit ($47,633 for tax year 2025), less any Social Security deduction they take, and the Social Security piece is exempt in its own right, so Missouri taxes a modest share at most. The second draws the same amount from a traditional IRA; at that income level they are well past the $25,000 single-filer ceiling, so the $6,000 private-pension exemption has phased out to nothing and the whole withdrawal is taxed under Missouri's regular schedule. Same headline income, very different Missouri bills. This example is illustrative, meant only to show how the source of income drives the result, not a prediction of your own outcome.

This guide covers Social Security and public and private pensions. If your income includes military retirement pay or another specialized category, confirm its Missouri treatment with the Missouri Department of Revenue, since separate provisions can apply. This is general information rather than personalized tax advice, and the public-versus-private pension distinction is exactly the kind of detail worth confirming with the Missouri Department of Revenue or a tax professional before you plan withdrawals. If retirement savings are part of how you will fund care, building a senior care funding plan is a useful next step.

Not sure which exemption your pension falls under? Chat with Brevy's care navigator to sort out your situation.

Frequently Asked Questions

Does Missouri tax Social Security?

No. Beginning with the 2024 tax year, Missouri fully exempts Social Security benefits for taxpayers 62 and older, with no income limit. The old AGI cap that used to phase out the deduction was removed.

Does Missouri tax 401(k) withdrawals?

Generally yes, for most of the amount. 401(k) and IRA income is treated under the private pension exemption, which maxes out at $6,000 per taxpayer and is income-tested: the full amount is allowed only below $25,000 of Missouri AGI (single, head of household, or qualifying widow(er)), $32,000 (married filing combined), or $16,000 (married filing separately), phasing out dollar for dollar above. Retirees who draw most of their income from these accounts usually owe tax on the bulk of it.

How much of my public pension is exempt?

Up to the maximum Social Security benefit amount: $47,633 for tax year 2025 and $46,381 for tax year 2024. This covers all or most of many government pensions; any amount above the cap is taxable, and the exemption is reduced by any Social Security deduction you take.

Are private pensions taxed differently than public ones?

Yes, and the gap is large. Public pensions get an exemption up to the maximum Social Security benefit ($47,633 for tax year 2025), while private pensions get only up to $6,000 per taxpayer, and only in full below the Missouri AGI ceilings of $25,000, $32,000, or $16,000 depending on filing status.

How is the retirement income that is not exempt taxed?

Under Missouri's regular individual income tax schedule, stacked with your other income. Check the Missouri Department of Revenue for the rate and brackets that apply to the year you are filing.

Next Steps

If you are retired in Missouri, sort your income by source first. The exemptions are generous for Social Security and public pensions and modest for everything else.

  • Confirm the Social Security exemption applies (age 62+); it carries no income limit for 2024 and later.
  • Identify your pension type: public pensions get the large exemption (up to the maximum Social Security benefit, $47,633 for tax year 2025), private pensions only $6,000 per taxpayer.
  • Treat IRA and 401(k) income as private pension income under the $6,000 per-taxpayer exemption, and check your Missouri AGI against the $25,000 / $32,000 / $16,000 ceilings before counting on it.
  • Total your remaining taxable retirement income and remember it is taxed under Missouri's regular income tax schedule.

If you are mapping out how to pay for care, how to pay for senior care covers the main routes.

Learn More

FinancialHow to Pay for Senior Care in MissouriHow to pay for senior care in Missouri in 2026: costs, Medicare's limits, MO HealthNet Medicaid, VA Aid and Attendance, and long-term care insurance. FinancialMissouri Senior Property Tax ReliefMissouri senior property tax relief explained: the Circuit Breaker credit (up to $1,100 owners, $750 renters) plus the SB 190 county senior tax freeze. FinancialHow Each State Taxes Retirement IncomeRetirement income tax varies enormously by state. Learn how states treat Social Security, pensions, and IRA or 401(k) money, and find your state's rules. FinancialHow to Pay for Senior CareHow to pay for senior care: what it costs nationally and how Medicaid, Medicare, VA benefits, and private pay each fit. Who qualifies, what's covered, in 2026. FinancialBuilding a Senior Care Funding PlanA step-by-step plan to pay for senior care: estimate the cost, inventory income and assets, find the payers you qualify for, sequence them, and get free help. FinancialRetirement Accounts for CareHow to use a retirement account to pay for senior care: the tax on IRA and 401(k) withdrawals, the early-penalty exceptions, RMDs at 73, and the tax-spike trap.

Find personalized help making sense of the Missouri retirement income tax at brevy.com.

The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.

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Brevy Care Team

Expert eldercare guidance from Brevy's team of healthcare professionals and researchers.