Missouri Mileage Deduction 2026: 4.7% State, 76¢ (the rate from 1 July 2026; 72.5¢ before that) Federal

Missouri's top individual income tax rate for 2026 is 4.7%. Combined with the 76¢ (the rate from 1 July 2026; 72.5¢ before that) federal standard mileage rate, a self-employed Missouri driver logging 14,000 business miles deducts $10,640 and keeps roughly $4,469 that would otherwise go to tax. Getting there requires a contemporaneous mileage log kept through the year. A December reconstruction will not survive an audit.

Source: Missouri Department of Revenue 2026 withholding formula, which applies a top rate of 4.7%. Verified August 2026.

Where the $4,469 comes from

The federal share is about $3,969, from income tax at a 22% marginal bracket plus 15.3% self-employment tax, assuming no qualified business income deduction. Missouri's share is about $500 at 4.7%. If you sit in a lower federal bracket the federal number falls and the state number does not.

The 10-cent statute nobody expects

Missouri sets a default mileage reimbursement rate in statute, and it is not the IRS rate. RSMo 33.095 fixes it at ten cents per mile "unless a higher rate is specifically authorized by statute or order of the commissioner of administration." The commissioner does authorize a higher rate in practice, but the statutory floor is a useful reminder that reimbursement law and deduction law are unrelated systems.

For a self-employed driver this matters in one specific case. If you contract with a public body in Missouri and your agreement is silent on mileage, the default it falls back to may be far below your actual cost per mile. Price the rate into the contract rather than assuming the federal figure applies.

Filing in Missouri

Claim the miles on federal Schedule C, Line 9 at 76¢ (the rate from 1 July 2026; 72.5¢ before that). Missouri Form MO-1040 begins from federal adjusted gross income, so no separate state entry is needed. Missouri does have local earnings taxes in Kansas City and St. Louis, both at 1%, which apply to net profits of self-employed residents and are computed after the mileage deduction has already reduced that profit.

FAQ

Did Missouri cut its income tax to 4.25% for 2026?

No. HB 2575 proposed 4.25% but was not enacted. The rate in force for 2026 is 4.7%. Any source quoting 4.25% is describing a bill that died in committee. Confirm enactment status before relying on a rate you find online.

Does the Kansas City or St. Louis earnings tax reduce my mileage benefit?

It increases it. Both are 1% on net profits, so a deduction that lowers net profit lowers the local tax too. On $10,640 of deducted mileage that is roughly another $106.

Can a Missouri W-2 employee deduct unreimbursed mileage?

No. The unreimbursed employee mileage deduction was permanently eliminated under the One Big Beautiful Bill. Reimbursement from the employer is the only remedy.

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