Missouri Governor Puts Income Tax Elimination Plan on August Ballot as Amendment 5

Missouri Gov. Mike Kehoe places Amendment 5 on the August 2026 ballot to phase out state income tax while protecting school funding and local tax rates.

Key Takeaways
  • Governor Mike Kehoe placed Amendment 5 on the ballot to phase out Missouri’s individual income tax by August 2026.
  • The measure includes protections for school funding and mandates reductions in property taxes to offset sales tax increases.
  • Implementation depends on state revenue growth metrics to ensure fiscal responsibility during the transition away from income taxes.

(MISSOURI) — Missouri Gov. Mike Kehoe placed a constitutional amendment on the August 4, 2026 primary election ballot that would phase out and eliminate the state’s individual income tax.

The proposal will appear as Amendment 5 (HJR 173/174). Kehoe announced the ballot placement by signing the relevant proclamations.

Missouri Governor Puts Income Tax Elimination Plan on August Ballot as Amendment 5
Missouri Governor Puts Income Tax Elimination Plan on August Ballot as Amendment 5

If voters approve it, the measure would phase out and eliminate Missouri’s individual income tax based on revenue growth. It would also require reductions in property taxes and other local taxes to offset any local sales tax revenue increases, while preserving local funding for public schools.

Kehoe cast the move as a tax-code overhaul that still leaves time for lawmakers to prepare. “Modernizing Missouri’s outdated tax code, specifically, will be a momentous task for the Missouri General Assembly, and placing the measure to phase out Missouri’s income tax on the August ballot gives lawmakers additional time to prepare for the next phase of implementation.”

He also tied the proposal to broader voter support for economic policy changes. “As Missourians continue supporting policies that make our state more competitive, we want to ensure the legislature is positioned to act responsibly following the direction of the voters.”

The announcement places Amendment 5 among several statewide questions set for the same ballot. Missouri voters on August 4, 2026 will also see Amendment 1, Amendment 2 (HJR 23/3), and Amendment 4 (HJR 3).

Kehoe’s action moves the tax question from the Capitol to the statewide ballot, where voters will decide whether to add the proposal to the Missouri Constitution. The governor’s statement framed that step as part of a longer legislative process rather than an immediate change to tax collections.

Under the measure’s language, the phaseout would proceed based on revenue growth. The legislature would still need to define the metrics used for that growth and act on the mechanics of the reductions described in the amendment.

That legislative role extends beyond the individual income tax itself. Lawmakers would need to implement the tax reductions tied to any local sales tax revenue increases and maintain the protection for local public school funding set out in the proposal.

The proposal combines three tax-related commitments in a single ballot question: ending the state’s individual income tax over time, requiring offsetting reductions in certain local taxes, and preserving school funding at the local level. Each of those pieces would shape how Missouri carries out any shift away from income tax collections if voters approve the amendment.

Kehoe’s statement emphasized timing as much as policy. By putting the measure on the primary ballot, he said, lawmakers would have additional time to prepare for implementation after voters weigh in.

Missouri now heads toward a summer ballot that includes a direct vote on one of the state’s central revenue questions, with Amendment 5 asking whether future revenue growth should trigger the phaseout and eventual elimination of the individual income tax while local tax offsets and school funding protections remain in place.

People also ask

Answers from VisaVerge guides
When will Missouri voters decide on eliminating income tax?

Missouri voters will decide on eliminating the state's individual income tax through a constitutional amendment vote in November 2026.

Read: Missouri General Assembly Approves Tax Swap, Putting Income Tax Elimination to Voters
What is the timeline for the Missouri income tax repeal proposal?

The measure faces a potential November 2026 ballot for final approval by state voters, with a phased elimination of the income tax potentially by 2032.

Read: Gov. Mike Kehoe s Missouri Income Tax Repeal Advances via House Joint Resolutions 173 and 174
When is the deadline to file Missouri's 2025 state income tax return?

The standard filing deadline for Missouri’s 2025 state income tax return is April 15, 2026.

Read: Missouri 2025 State Income Tax: Eight Brackets and Local 1%
How are progressive tax rates applied to individual filers' income in Missouri for the 2026 fiscal year?

Progressive tax rates are applied such that only the portion of income falling into higher brackets is taxed at those rates; lower portions are taxed at lower rates.

Read: Missouri 2026 Tax Rates and Brackets: What Filers Need to Know
Which states are scheduled to cut income taxes starting in 2026?

Nine U.S. states are scheduled to cut income taxes starting in 2026, but specific details on which states were not provided in the content.

Read: State-by-State Tax Differences: Real Costs of Salary by Location
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Sai Sankar

Sai Sankar is a law postgraduate with over 30 years of experience across direct and indirect taxation, spanning consultancy, litigation, and policy interpretation. At VisaVerge.com he leads coverage of cross-border finance for immigrants and NRIs — U.S. and state income tax, IRS rules, tariffs and trade duties, foreign-asset reporting, gift and estate tax, and retirement accounts like IRAs and RMDs. Sai's legal acumen turns the tangled intersection of immigration and money into clear, actionable guidance for a global audience.

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1 Comment
Eldon TATE

So far, all I can find on the proposal is that we are being asked to vote for a Pig in a Poke. I see nothing in the information that tells me what new sales and use taxes will be added, nor can I see any information as to what the tax rate will be. Are Medical visits and procedures taxable? If so, what will the rate be? If insurance pays part or all of the cost, who will be responsible for the tax?
If I am understanding correctly, the rates and what will be taxed are completely up to the Legislature. This completely ignores the Hancock Amendment, or has that been repealed when I wasn’t looking? I, for one will be voting NO>