Missouri Eliminates State Capital Gains Tax: What It Means for You
We have some important news that could have a direct impact on your financial planning. Missouri has officially eliminated the state-level tax on capital gains, effective January 1, 2025.
Key Details
When does it take effect? All state laws passed in a regular session begin August 28, but this law is retroactive. That means any gains realized since January 1, 2025 will be exempt from Missouri state income tax.
How will you see the benefit? The savings will show up when you file your 2025 income tax return in April 2026.
What’s covered? Both short-term and long-term capital gains—whether from selling stocks, real estate, or a business—are now excluded from Missouri taxable income.
Why This Matters
If you’ve sold investments, property, or a business interest this year, your gains will not be subject to Missouri state tax.
For those planning sales later in 2025, this creates a valuable opportunity to keep more of what you earn.
Missouri is now the first state with an income tax to repeal capital gains tax outright—putting it in a very favorable position compared to other states.
Planning Opportunities
This change is a win for Missouri taxpayers. We will be reviewing 2025 transactions and upcoming plans with this in mind to make sure you’re capturing the full benefit.
If you’re considering selling investments, property, or a business, now is an excellent time to revisit your strategy.
Missouri’s repeal of capital gains tax gives you more room to grow and protect your wealth. We’ll make sure your planning reflects this.
Will