WeVote
Log In

Bill

WeVote Research Nonpartisan
Bill Summary · HB 3294

Summary of HB 3294 (2026) – Missouri

Purpose and intent

HB 3294 proposes to provide a state income tax subtraction for all military income. The main aim is to reduce the tax burden on service members by excluding a broad range of military earnings from Missouri taxable income, thereby increasing take-home pay for active-duty personnel, reservists, and other individuals with military income.

Key provisions and changes

  • Income tax subtraction for all military income: The bill creates a subtraction (i.e., exemption) from Missouri adjusted gross income (AGI) for all military pay and benefits that are includable for Missouri income tax purposes. This would apply to:
    • Active-duty military pay
    • Reserve and National Guard pay
    • Military retirement pay
    • Other forms of military compensation that would otherwise be taxable under Missouri law
  • Scope of the subtraction: The subtraction would apply to the full amount of military income that would be taxed under current Missouri law, effectively removing that income from taxable income for state purposes.
  • Applicability: The provision appears to apply to all individuals with qualifying military income, regardless of residency status, subject to Missouri’s tax rules as they exist at the time of enactment.

Note: Based on the available information, the bill text confirms the establishment of an income tax subtraction for all military income but does not specify caps, phase-outs, or sunset provisions. If enacted, such details would significantly affect the magnitude and administration of the subtraction.

Who would be affected

  • Missouri tax filers with military income: Active-duty service members stationed in Missouri, as well as nonresident military personnel earning income in Missouri, would benefit.
  • Military retirees: Retired military personnel receiving retirement pay would gain from the subtraction of that income from Missouri taxable income.
  • Spouses and dependents: Indirectly affected if their household income includes military compensation that qualifies for the subtraction.

Procedural and timeline aspects

  • Referral and committee action:
    • Referred to the House Ways and Means Committee (H) on February 16, 2026. Public hearing completed on May 5, 2026.
  • Legislative process milestones:
    • Introduction and first reading: February 12, 2026.
    • Second reading: February 16, 2026.
    • Public hearing outcomes and potential amendments would influence advancement to full House consideration.
  • Sponsorship:
    • Primary sponsor: (Not specified in the provided data)
    • Co-sponsor: Don Mayhew
  • Status: As of the latest action (May 5, 2026), the bill has completed a public hearing in committee and remains in the House Ways and Means process, pending further votes or amendments.

Potential impact and considerations

  • Revenue impact: The subtraction reduces Missouri tax revenue by the amount of military income subtracted. The magnitude depends on the number of filers and the total amount of qualifying income.
  • Equity and targeting: The policy broadens the exemption to all military income, including retirement pay, which could be considered progressive relative to income size and seniority within the military community.
  • Administrative considerations: Tax administrators would need to verify qualifying military income and apply the subtraction on individual returns, ensuring consistency with federal and state treatment of military pay and benefits.
  • Policy alignment: The proposal aligns Missouri with other states that offer military income tax relief, potentially enhancing competitiveness for military personnel considering relocation or deployment.

If you would like, I can compare HB 3294 to existing Missouri military income tax provisions or provide a hypothetical revenue estimate based on typical state tax brackets.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.