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Missouri Senate Bill 1237 Imposes 4% Flat Income Tax and Eliminates Federal Tax Deduction Starting in 2027

Original title: Modifies provisions regarding income taxes, including the imposition of a 4% flat income tax

Last action · January 27, 2026: Second Read and Referred S Economic and Workforce Development CommitteeSponsor: Nick Schroer

Introduced
Committee
Floor Vote
Passed
Law

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Public stanceCommunity reactions are separate from the official record and reporting.

What This Bill Would Do

Beginning January 1, 2027, Missouri will replace its graduated income tax with a flat 4% tax rate and eliminate the individual and corporate income tax deduction for federal income taxes paid. The bill also establishes a mechanism for future rate reductions starting in 2028 if net general revenue collections meet specific growth thresholds.

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

individual taxpayers

Directly affected

corporate taxpayers

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

When does the flat 4% income tax take effect?
The flat 4% income tax takes effect for all tax years beginning on or after January 1, 2027.
What happens to the federal income tax deduction under this bill?
The federal income tax deduction for individual and corporate taxpayers is completely eliminated beginning with the 2027 tax year.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

Currently in committee. The next step in the legislative lifecycle is Floor Vote.

Procedural history

3 actions
  1. Jan 27, 2026SenateFloor
    Second Read and Referred S Economic and Workforce Development Committee
  2. Jan 7, 2026SenateIntroduced
    S First Read
  3. Dec 1, 2025Senate
    Prefiled

Version history

Only one version on file - nothing to compare yet. The text on record is the 5471S.01I - Introduced version. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Transition to Flat Income Tax and Removal of Deductions

The legislation marks a major shift from a graduated income tax structure with federal tax deductions to a flat 4% rate with zero federal deductions.

Connected Entities

Department of Revenue, General Assembly, Bureau of Labor Statistics and 1 more
OrganizationDepartment of Revenue“State department responsible for adjusting tax tables and rates by rule.”Map →
OrganizationGeneral Assembly“Legislative body of the State of Missouri.”Map →
OrganizationBureau of Labor Statistics“Federal agency reporting the Consumer Price Index.”Map →
PersonNick Schroer“Missouri State Senator, District 2, who introduced SB 1237.”Map →

Sources

Open source document

www.senate.mo.gov

Analysis Score

0–100
  • Significance85
    How much this matters to a regular citizen
  • Controversy75
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz60
    Current news / social attention level

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