Income tax cut on the way, says Parson

Gov. Mike Parson touted an upcoming tax cut for Missourians during a Springfield Area Chamber of Commerce event this week.

For the chamber’s seventh annual State of the State event on July 30, the governor once again served as its keynote speaker. The sold-out gathering of 580, which chamber officials said had a capped attendance, was held at Great Southern Bank Arena on Missouri State University’s campus.

Regarding the tax cut, the top income tax rate will lower to 4.7% from 4.8%, as of Jan. 1, 2025. According to a news release, the cut marks the fourth straight year of reductions and equates to a 1.2% reduction since 2018.

“You need to reward the everyday people out there,” Parson said at the chamber event. “We are proud to announce we have met the requirements to deliver another tax cut for Missourians, the fifth cut of our administration since I’ve been governor.”

The incremental income tax cut was triggered under two bills state legislators approved in 2022 that Parson signed into law. The legislation calls for a 0.1% decrease in income tax when general revenue increases by $200 million in a given fiscal year, according to the release. The state’s general net revenue grew by nearly $323 million in the previous fiscal year.

During Parson's tenure, the income tax reduced by 0.5% in 2019, 0.1% in 2022, 0.35% in 2023 and 0.15% in 2024, according to the release.

“This is good news for hard-working Missouri families and proves our historic tax cut legislation is working exactly as we knew it would," said state Sen. Lincoln Hough, R-Springfield, in the release. "More money in Missourians' pockets means more money in the economy and in turn more state revenue, and thanks to our efforts, that revenue is leading to more tax cuts."

Springfield Business Journal Digital Editor Geoff Pickle contributed to this article. An expanded version is scheduled to be published in SBJ's Aug. 5 print edition.