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SB 1287

SB 1287 - Current law authorizes a taxpayer to deduct a maximum of the first $6,000 of any retirement allowance received from any privately funded sources if the taxpayer's Missouri adjusted gross income is less than $25,000 if filing single, $32,000 if filing married combined, or $16,000 if filing married separately. For all tax years beginning on or after January 1, 2027, this act increases such deduction to $12,000 and increases the income thresholds to $50,000, $64,000, and $32,600, respectively. This act is identical to HCS/HBs 1762 & 2059 (2026), SB 620 (2025), HB 44 (2025), and HB 2657 (2024), and to a provision in HCS/SS/SB 898 (2024), and is substantially similar to HB 2205 (2026), HB 1423 (2024), SB 241 (2023), SB 448 (2023), SB 585 (2023), HB 156 (2023), HB 456 (2023), HB 662 (2023), HB 1206 (2023), SB 871 (2022), HB 2853 (2022), SB 157 (2021), SB 847 (2020), and HB 1725 (2020), and to provisions in HCS/SS#3/SCS/SB 131 (2023), SS/SB 190 (2023), HCS/SB 247 (2023), HS/HCS/HB 356 (2023), and SCS/HCS#2/HB 713 (2023). JOSH NORBERG

2026 Regular Session Introduced by David Gregory

SB 1287 modifies Missouri income tax deductions for certain retirement benefits, affecting retiree tax liability and state revenue collection.

Second Read and Referred S Local Government, Elections and Pensions Committee
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Bill Summary · SB 1287

Legislative bill overview

SB 1287 modifies Missouri's income tax code to adjust deductions available for certain retirement benefits. The bill specifically targets how residents can deduct retirement income on their state tax returns, potentially expanding or restricting eligibility for existing deductions.

Why is this important

Changes to retirement benefit deductions directly affect take-home income for retirees and those receiving pension or annuity payments in Missouri. Tax treatment of retirement income influences financial planning decisions and affects state revenue, which could impact budget allocations for education, infrastructure, and other services.

Potential points of contention

  • Scope of beneficiaries: Whether modifications expand deductions to more taxpayers or narrow eligibility, potentially creating winners and losers among retirees
  • Revenue implications: Changes could reduce state tax collections, requiring offsetting revenue sources or spending cuts elsewhere
  • Definition disputes: Disagreement over which retirement benefits qualify, particularly regarding federal vs. state pensions, military benefits, or private retirement accounts

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

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