HB 607 Summary

• Repeals and replaces section 143.011 of Missouri Revised Statutes regarding individual income tax rates
• Maintains existing tax rate structure for tax years before January 1, 2013, with rates ranging from 1.5% to 6% on taxable income brackets starting at $1,000
• Establishes new inflation-adjusted tax brackets effective January 1, 2013 and thereafter, with income thresholds increased to $15,100 as the lowest bracket (compared to $1,000 previously)
• Keeps the same marginal tax rates (1.5% to 6%) but applies them to substantially higher income brackets to account for inflation
• Updates all subsequent tax bracket thresholds proportionally, such as the top bracket beginning at $135,900 instead of $9,000