Missouri Mileage Deduction 2026: Low Gas, Solid Savings

Missouri's top income tax rate is 4.7%. At 15,000 business miles, you save roughly $511 in state taxes on top of about $4,056 in federal income and self-employment tax savings. That is about $4,567 back for keeping a mileage log. Missouri consistently has some of the lowest gas prices in the country, which means the IRS standard rate of 72.5¢/mile over-compensates your actual fuel costs, you keep the full deduction either way.

Missouri is one of only three states (along with Alabama and Oregon) that lets you deduct federal income taxes paid from your state return. The cap is $5,000 for single filers and $10,000 for married filing jointly. If you are self-employed and had a large federal tax bill, this state-level deduction is a meaningful break that most people miss entirely.

How to File

Deduct your business miles on federal Schedule C, Line 9 at 72.5¢/mile. Missouri starts with your federal adjusted gross income, so the mileage deduction flows through to your state return automatically. Keep a mileage log with the date, destination, purpose, and miles for each trip. If you expect to owe more than $100 in state taxes, make quarterly estimated payments.

The state does not require employers to reimburse mileage. If you drive for work, tracking is the only way to get the money back.

FAQ

Does Missouri require mileage reimbursement?

No. Missouri has no state law requiring private employers to reimburse mileage.

Does my mileage deduction reduce Missouri state taxes?

Yes. Missouri uses your federal adjusted gross income as the starting point. Your Schedule C mileage deduction reduces that number, which directly reduces your state tax.

Can W-2 employees deduct mileage in Missouri?

No. The mileage deduction for W-2 employees was permanently eliminated under the One Big Beautiful Bill. If your employer does not reimburse, you have no tax remedy.

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