MO HB3294

Missouri residents may subtract 100% of all military income from their state adjusted gross income for tax years beginning on or after January 1, 2027

Military income includes all taxable pay, benefits, and allowances for uniformed services members, including basic pay, drill pay, active duty pay, training pay, bonuses, and retirement benefits

Uniformed services covers all branches of the Armed Forces, reserve components, and the National Guard as defined in federal law

Repeals existing sections 143.174 and 143.175, which provided separate deductions for active duty income and phased-in deductions for National Guard/reserve income, consolidating them into a single comprehensive subtraction

Applies regardless of the taxpayer's duty status (active, reserve, retired) or filing status (individual or combined returns)