Missouri Public Pension Exemption

Depending on a variety of factors, you may be able to deduct up to 100% of your public retirement benefits received from PEERS on your Missouri income tax return.

The total public pension exemption is limited to the maximum Social Security benefit of each spouse.

Starting with the 2024 tax year, the exemption is no longer limited by your filing status or Missouri adjusted gross income. Visit https://dor.mo.gov/faq/taxation/individual/pension-tax-year-2024.html for more information.

For tax year 2023, in order to be eligible for the full deduction, your Missouri adjusted gross income must fall within certain income limitations. If your income exceeds the limitation, you may qualify for a partial exemption. The amount of your exemption must be reduced by the amount that your income exceeds the limitation. The limitation is based on your filing status and income (less taxable Social Security benefits) as listed below:

  • $100,000 – Married, filing combined
  • $85,000 – Married, filing separate
  • $85,000 – Single, Head of Household, or Qualifying Widow(er)

This exemption, which first became available in 2007, was phased in over several years, reaching 100% for tax year 2012 and subsequent tax years.

Missouri also offers a similar exemption for private pensions and Social Security benefits; however the qualifications for both of these exemptions vary from the public pension exemption. If you also qualify for a Social Security exemption, it may impact your public pension exemption.

Eligibility is dependent on a variety of factors for any of the exemptions discussed above. Visit http://dor.mo.gov for more information regarding eligibility. Or you may contact the Missouri Department of Revenue at (573) 751-3505, email [email protected] or consult a tax professional for more information.