Capital gains: Capital gains exempt from state income tax from Jan. 1, 2025 (HB594); gains on gold and silver specie exempt from 2026 (HB754).
What changed: First income-taxing state to repeal its tax on capital gains (effective 2025).
| January 1, 2026 | Missouri repeals individual tax on capital gains (HB594) and specie gains (HB754) Missouri became the first state with an income tax to exempt capital gains, and from 2026 non-Missouri-source income of resident trusts and estates is also exempt. | In effect |
A constitutional amendment would phase out Missouri's income tax using revenue-triggered cuts and a broader sales tax, one year after the state exempted capital gains entirely.
Gov. Mike Kehoe signed House Bill 594, letting individuals deduct 100% of federally reported capital gains, short-term and long-term, starting with the 2025 tax year.