Active-duty pay
Taxed
Active-duty pay taxable; combat zone exempt.
State Guide · MO
Missouri — Military Tax Treatment
Missouri exempted military retirement in 2024 — a significant change. Active duty and Guard pay are still taxable. If you retired before 2024 and MO was withholding on your pension, update your state withholding.
Tax treatment at a glance
Guard & Reserve drill pay
Taxed
Guard and Reserve drill pay is taxable Missouri income. The retirement exemption (2024) does not extend to active service or Guard drill pay.
Military retirement pay
Fully Exempt
Military retirement pay fully exempt as of 2024.
The numbers · verified for tax year 2025
Top marginal rate
4.7%
Retirement-pay exemption
Full
Missouri allows a 100% deduction of military retirement pay, fully exempting it (phase-in completed in tax year 2024) — no dollar cap, no age threshold.
Standard deduction
Missouri ties to the federal standard deduction: $15,750 single / $31,500 MFJ for 2025. The top rate dropped to 4.7% effective Jan 1, 2025.
VA disability compensation
Always tax-free
Federally tax-free under 38 USC § 5301. No state taxes VA disability compensation as income — Missouri included.
Survivor Benefit Plan (SBP)
Follows retirement
Missouri exempted military retirement in 2024 — SBP annuities are generally exempt under the same provision.
Federal rules that override state law
SCRA — Servicemembers Civil Relief Act
Active-duty servicemembers pay state income tax only to their state of legal domicile — not the state where they are stationed. If you are from Texas and stationed in Missouri, Missouri cannot tax your military pay. This applies during all active duty periods and during Guard/Reserve mobilizations on federal (Title 10) orders.
MSRRA — Military Spouses Residency Relief Act
Military spouses can maintain their home-state domicile even when living in a different state due to their servicemember's orders. A spouse who is a Texas resident following their servicemember to Missouri can keep Texas as their tax domicile and avoid Missouri state income tax on their wages.
Guard & Reserve — the SCRA gap
SCRA pay protections apply during federal (Title 10) activation orders. During routine drill weekends and state-only activations, Guard and Reserve members are state residents serving in their home state — SCRA does not protect their drill pay from state income tax. Whether Missouri exempts that pay is the state-specific question answered above.
Filing watch-outs
- 012024 change: military retirement now fully exempt — update state withholding from pension payer if needed
- 02Guard drill pay remains taxable — withhold MO taxes on those wages
Veteran-specific tax benefits
Disabled veteran property tax credit.
Official authority
https://dor.mo.gov/ ↗State tax law changes annually. Verify current rules with the Missouri Department of Revenue before making any tax decision.
Missouri military tax — common questions
Does Missouri tax military retirement pay in 2026?
Missouri fully exempts military retirement pay. Military retirement pay fully exempt as of 2024.
Does Missouri tax active-duty military pay?
Missouri taxes active-duty military pay for state residents. Active-duty pay taxable; combat zone exempt. Under the SCRA, Missouri can only tax the military pay of service members who are legally domiciled in Missouri — not those merely stationed there.
Does Missouri tax National Guard and Reserve drill pay?
Missouri taxes Guard and Reserve drill pay. Guard and Reserve drill pay is taxable Missouri income. The retirement exemption (2024) does not extend to active service or Guard drill pay.
Is VA disability compensation taxed in Missouri?
No. VA disability compensation is federally tax-free under 38 U.S.C. § 5301, and no state — including Missouri — taxes it as income.
If I'm stationed in Missouri but claim another state, can Missouri tax my military pay?
No. Under the Servicemembers Civil Relief Act (SCRA), active-duty pay is taxable only by your state of legal domicile, not the state where you are stationed. If your domicile is elsewhere, Missouri cannot tax your active-duty military pay. Military spouses get the same protection under the MSRRA.
Related tools
Other state guides