Selling a business in Missouri: what the state takes (2026)
Missouri’s top individual income tax rate is 4.7%. Here is what an owner selling company stock pays, with 2026 rules from official sources and worked examples at $10 million, $25 million and $50 million.
- 4.7%
- Top Missouri income tax rate (2026)
- $0
- State tax on a $25M long-term gain
- 23.8%
- Combined federal and state rate on $25M
- 43 of 51
- Rank by total tax on $25M (1 = highest)
How Missouri taxes a business sale
- Income tax
- Top rate 4.7%: Over $9,436 (2026, single).
- Long-term capital gains
- Individuals subtract 100% of all income reported as a capital gain for federal purposes (short- and long-term) from Missouri AGI, so a stock-sale capital gain bears no Missouri income tax.
- Entity-level taxes
- The subtraction does not yet apply to corporations; it begins the year after the top individual rate falls to 4.5% or lower. A C-corp asset sale is therefore still taxed at the entity level.
- Local taxes
- Kansas City and St. Louis levy a 1% earnings tax on residents, but it reaches wages and business net profits, not investment gains: St. Louis lists dividends, interest and stock-related gains as non-taxable for individuals.
Three worked examples
| Long-term gain | $10,000,000 | $25,000,000 | $50,000,000 |
|---|---|---|---|
| Federal capital gains tax (20%) | $2,000,000 | $5,000,000 | $10,000,000 |
| Net investment income tax (3.8%) | $380,000 | $950,000 | $1,900,000 |
| Missouri tax | $0 | $0 | $0 |
| Total tax | $2,380,000 | $5,950,000 | $11,900,000 |
| Effective combined rate | 23.80% | 23.80% | 23.80% |
| Net proceeds after tax | $7,620,000 | $19,050,000 | $38,100,000 |
| Extra tax versus Texas | $0 | $0 | $0 |
Seller’s tax calculator
Estimate federal and state tax on a stock sale and what is left before fees and debt.
- Long-term capital gain
- $25,000,000
- Federal capital gains tax (20%)
- $5,000,000
- Net investment income tax (3.8%)
- $950,000
- Missouri tax
- $0
- Gain excluded or deducted
- $25,000,000
- Total tax
- $5,950,000
- Effective rate on the gain
- 23.80%
- Net proceeds after tax
- $19,050,000
Illustration, not tax advice. Assumes a resident individual, the whole gain long-term, top marginal rates, no state credits, installment terms, QSBS exclusion or other planning, and no local taxes. Net proceeds are before transaction fees, debt repayment, escrows and earn-outs. Rates are for tax year 2026 where published; see the methodology.
Compare with other states
Neighboring states
Common comparisons
- California37.1% combined, $15.72M net
- New York34.1% combined, $16.48M net
- Texas23.8% combined, $19.05M net
- Florida23.8% combined, $19.05M net
- Nevada23.8% combined, $19.05M net
- Washington33.5% combined, $16.63M net
Methodology and sources
Missouri figures are for tax year 2026. Top rate 4.7% (DOR 2026 withholding formula and Tax Foundation 2026 table). The 100% capital gain subtraction applies to tax years beginning on or after Jan 1, 2025 (HB 594, RSMo 143.121.3(14)). The examples assume a resident individual selling privately held stock for a long-term gain equal to the sale price (zero basis), with every dollar taxed at the top marginal rates, the federal 20% capital gains rate and the 3.8% net investment income tax, and no planning, credits or local taxes. Full assumptions are in the report methodology.
All 50 states and DC with source URLs.
- 1RSMo 143.121 (subsection 3(14): 100% capital gain subtraction)
- 2Missouri DOR news: Missouri first state to fully exempt capital gains
- 3City of St. Louis Collector of Revenue, earnings tax taxable and non-taxable items
- 4Tax Foundation, State Individual Income Tax Rates and Brackets, 2026. Secondary source
Data last updated October 26, 2026.
Cite this research
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Citation
Laurent Capital Research, “The Seller’s Tax Map: What Selling a Business Costs in Every State (2026): Missouri,” 2026, https://laurent.capital/research/seller-tax-map/missouriLink (HTML)
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