Missouri employers withhold graduated state income tax, with a top marginal rate of 4.7% for 2025, and pay unemployment insurance on the first $9,500 per employee. Employers in St. Louis and Kansas City also withhold local earnings taxes.
Missouri requires employer unemployment insurance (UI/SUTA) contributions, new-hire reporting, and municipal earnings or payroll taxes in some cities. The state's voter-approved paid sick leave and minimum wage changes from 2024-25 were the subject of litigation and subsequent legislative action. The Department of Labor and Industrial Relations and the Division of Employment Security are the primary state employer resources.
State tax requirements
| Requirement |
What Missouri employers must do |
| Individual income tax |
Missouri uses a progressive income tax structure. For tax year 2025 the top marginal state rate is 4.7%. Use the Missouri Department of Revenue withholding tables and withholding formula when calculating state withholding, including the 2025 Withholding Table and Withholding Formula publications. |
| UI taxable wage base (CY2025) |
$9,500 per employee. Employers pay UI taxes on wages up to this amount per employee in 2025. |
| New employer SUTA rate (2025) |
Generally 2.376% for most employers, and 1.00% for some nonprofits and special classes. Experienced employer rates vary by experience rating. Register for UI tax with the Missouri Division of Employment Security (DES). |
| New-hire reporting |
Report all new hires and rehires within 20 days to the state new-hire registry through the Missouri Employer portal. |
| State-mandated retirement |
Missouri does not currently operate a statewide mandatory private-sector retirement (auto-IRA) program that forces employer participation. Public-sector employees are covered by state retirement systems such as SERS and PSRS. Monitor state legislative activity and DOR or Treasury guidance for changes. |
Local tax requirements
Missouri does not have widespread local payroll taxes, but two cities require special attention: St. Louis and Kansas City. Outside these cities, most Missouri municipalities do not levy earnings or payroll taxes, but employers should verify whether local business or license taxes apply where they operate.
| City |
Employer obligation |
| St. Louis |
Withhold a 1.0% earnings tax from employees who live in the city or perform work there, and pay a separate 0.5% payroll expense tax on wages earned in the city. Register with the City Collector of Revenue, and file and remit both the employee withholding and the employer tax according to city deadlines. |
| Kansas City |
An earnings tax applies to residents on all earnings and to nonresidents who work in the city. Employers are responsible for withholding the tax, registering with the city's tax department, and complying with mandatory e-filing rules that took effect in 2025. |
Minimum wage and tipped employees
- 2025 state minimum wage: $13.75 per hour, effective January 1, 2025. Legislative action set a schedule for increases; earlier voter initiatives and later legislative repeal actions changed certain elements, so verify year-by-year obligations.
- Tipped employees: Missouri law and MO DOL guidance allow employers to pay tipped employees a tipped cash wage equal to 50% of the state minimum, which for 2025 is $6.875/hr. The employer must ensure tips plus cash wage equal at least the full minimum of $13.75/hr and make up the difference if not. Withhold tax on tips as required by Missouri withholding rules.
Wage and hour compliance
| Topic |
Missouri rule |
| Overtime |
Missouri employers must follow the federal FLSA overtime rules — time-and-a-half for non-exempt employees for hours worked over 40 in a workweek — and must comply with any state statute or regulation that is more protective than federal law. Missouri DOL guidance points employers to the FLSA as the baseline for overtime. |
| Rest and meal breaks |
Missouri does not require private-sector employers to provide paid meal or rest breaks beyond federal FLSA rules. Short breaks, typically around 20 minutes, are compensable if provided. Document any break policies and follow sector-specific rules. |
| Final pay at termination |
Missouri law requires payment of wages due when an employee is discharged or terminated; Department of Labor guidance indicates discharged employees should be paid immediately, and employers may mail wages on request within statutory timeframes. If an employee quits, Missouri law does not specify a required timing rule — wages should be paid by the next regularly scheduled payday unless company policy or agreement provides otherwise. |
| Pay frequency |
Missouri statute (RSMo section 290.080 and related sections) requires corporations and many employers to pay employees as often as semi-monthly and within sixteen days of the close of each payroll period, with statutory exceptions for certain employees such as executive, administrative, professional or commission-paid employees. Payroll schedules and pay stubs must meet the statute's timing and recordkeeping requirements. |
| Wage deductions and garnishments |
Follow Missouri statutes and federal law for wage assignments, garnishments and allowable deductions. Honor court-ordered garnishments such as child support, and follow Missouri calculation rules and federal limits. See RSMo and Division of Labor guidance for procedures and forms. |
| Recordkeeping and notices |
Keep payroll, time and tax records per Missouri statute and federal FLSA requirements. Display required notices and posters — minimum wage summaries, wage statements and city posters for local ordinances such as St. Louis earnings tax notices — where required. |
Youth and child labor
Generally, no child under 14 may be employed, with exceptions for limited categories such as entertainment, newspaper delivery, babysitting and occasional yard work. 14- and 15-year-olds need work certificates and have restricted hours during school sessions. Employees 16 and older may work broader hours, but federal hazardous-occupation rules still apply. Follow Missouri youth employment rules on hours, permits and allowable occupations.
Paid sick leave and PTO
As of this update, the earned paid sick time law that voters approved in 2024 is no longer required to remain in force beyond the repeal effective date; the state Department of Labor and Industrial Relations has published the repeal action and related FAQs. Employers may continue to offer paid sick leave voluntarily and must honor any leave lawfully accrued while the now-repealed law was in effect. Track accruals for time worked between the effective accrual window and the repeal date, and monitor MO DOL guidance for further changes or constitutional amendment activity.
Important: If you maintained accruals under the voter-approved law earlier in 2025, make sure payroll pays out or preserves accrued and used balances consistent with MO DOL guidance for leave accrued through the effective repeal date.
2025 compliance updates
- Income tax: Missouri's top income tax rate is 4.7% for 2025 withholding and filing calculations. Use the DOR withholding tables and formulas.
- Unemployment insurance: the taxable wage base for CY2025 is $9,500, and the new-employer UI rate for most employers is 2.376%. Check your MODES-527 notice.
- Paid sick leave / minimum wage ballot law: voter-approved changes and subsequent litigation and legislative actions in 2024-2025 led to rapid statutory changes and a repeal action effective August 28, 2025. Follow MO DOL guidance for accrued leave that vested while the law was in force, and monitor further state constitutional amendment efforts or legislative changes.
Resources and references
- Missouri Department of Revenue — 2025 Withholding Table and Withholding Formula.
- Missouri Department of Labor and Industrial Relations / Division of Employment Security — UI taxable wage base, employer rates and paid leave FAQs.
- Missouri Employer new-hire reporting portal and employer resources (missouriemployer.dss.mo.gov).
- City of St. Louis Collector of Revenue (stlouis-mo.gov) — earnings tax and payroll expense tax registration and filing.
- Missouri Revisor of Statutes — RSMo section 290.080 pay frequency, garnishment and wage payment provisions.
- U.S. Department of Labor — FLSA overtime baseline.
Note: This overview reflects state guidance as of 09/16/2025. Confirm current rates, wage bases and deadlines with the agencies above before running payroll.
Frequently asked questions
What is the Missouri unemployment insurance taxable wage base?
The Missouri UI taxable wage base for calendar year 2025 is $9,500 per employee. The 2025 new-employer SUTA rate is generally 2.376% for most employers, or 1.00% for some nonprofits and special classes, while experienced employer rates vary by experience rating.
Which Missouri cities have local earnings taxes?
St. Louis and Kansas City. In St. Louis, employers withhold a 1.0% earnings tax from employees who live in the city or perform work there and also pay a separate 0.5% employer payroll expense tax on wages earned in the city. Kansas City imposes an earnings tax on residents and on nonresidents who work in the city, which employers must withhold.
What is Missouri's minimum wage, and what can tipped employees be paid?
Missouri's state minimum wage is $13.75 per hour effective January 1, 2025. Employers may pay tipped employees a cash wage equal to 50% of the state minimum, which is $6.875 per hour for 2025, but tips plus cash wage must equal at least $13.75 per hour or the employer must make up the difference.
How soon must Missouri employers report new hires?
Missouri requires employers to report all new hires and rehires within 20 days to the state new-hire registry through the Missouri Employer portal.
When does a terminated Missouri employee have to be paid?
Missouri law requires wages due to be paid when an employee is discharged, and Department of Labor guidance indicates discharged employees should be paid immediately, with wages mailed on request within statutory timeframes. When an employee quits, Missouri law does not specify a timing rule, so wages should be paid by the next regularly scheduled payday unless company policy or an agreement provides otherwise.
