Missouri Governor works to modernize Missouri’s tax code

MISSOURI (KBSI) – Missouri could soon be the 10th state to eliminate individual income tax.

Missouri’s Governor, saying he wants voters to decide. 

Missouri Governor Mike Kehoe announced yesterday, January 13, 2026, that he’s pushing for one of the most far-reaching tax debates the state has seen in years. He says he’s planning to put before voters the option to phase out income tax completely. 

 “I signed an executive order that reinforces our commitment to government efficiency. A new initiative called Missouri Great” says Kehoe. 

Under the Missouri Great Executive Order Kehoe proposed an individual income tax elimination plan. The first part of the plan would add the option to the 2026 ballot allowing Missourians to vote on whether or not to eliminate the states income tax, if approved by voters Kehoe would then start a 5 year phase out plan to slowly eliminate individual income tax, and replace the revenue by expanding sales tax to cover only certain services such as digital goods and subscriptions while also offsetting local tax.

Some Missourians say they’re worried how this would affect low-income families, while others say it’s a great idea.

 “Missouri becoming a no income tax state that sounds great. I would hope that it would be nice if we could just do that and get rid of it, and it would not affect anything else. I have a feeling that the state’s getting its money either way, no matter what. You know, it’s a double-edged sword.” -NOW App User. 

 “I would love for Missouri to get rid of the income tax. It would just mean more money in my paycheck, you know? It’s not exactly a new concept. Florida has not had income tax for a long time now and I actually did a research project once in college and found that living in Destin Florida you know, a big touristy area. Cost of living wise is comparable to living in Cape Girardeau. Just for that reason alone, no state income tax.” 

Additional information: A FOUNDATION FOR GROWTH: Governor Kehoe Delivers 2026 State of the State Address | Governor Mike Kehoe