Missouri residents have good news when it comes to inheritance tax (also estate tax) – the state doesn’t impose one. This means beneficiaries who inherit assets from Missouri estates won’t face state-level taxes on their inheritance.
No – Missouri eliminated its inheritance tax years ago. The state also No an estate tax, making it one of the more tax-friendly states for estate planning and inheritance.
This absence of state death taxes means families can focus on other aspects of estate planning without worrying about additional state tax burdens on inherited assets.
While Missouri doesn’t impose state death taxes, federal estate tax may still apply to very large estates.
The federal estate tax exemption for 2026 is $15,000,000 per person, which means most families won’t face federal estate tax either.
Estates exceeding this threshold pay federal estate tax on the amount above the exemption. However, this affects a very small percentage of estates nationwide.
How Does No Inheritance Tax Benefit Missouri Families?
YesMo. Rev. Stat. §§ 145.011, 145.1000; Mo. Dept. of Revenue, Estate Tax (no Missouri estate tax imposed; no return required for deaths on or after Jan. 1, 2005)Verified Jul 13, 2026View source provides several advantages for Missouri residents:
- Beneficiaries receive the full value of inherited assets without state tax deductions
- Estate planning becomes simpler without complex state tax considerations
- Families can focus on asset protection and distribution rather than tax minimization strategies
- Missouri remains attractive for retirees and wealthy individuals
While Missouri doesn’t tax inheritance, beneficiaries may still face other tax implications:
Income tax applies to certain inherited assets like retirement accounts (401k, IRA) when distributions occur. However, most inherited assets receive a “stepped-up basis” for capital gains purposes, which can significantly reduce future tax liability.
Property taxes continue on inherited real estate, and any income generated by inherited assets (like rental income or investment dividends) remains subject to regular income tax.
Estate Planning Remains Important in Missouri
The absence of inheritance tax doesn’t eliminate the need for proper estate planning. Missouri families still benefit from creating comprehensive estate plans that include wills, trusts, and other planning documents.
Proper estate planning helps avoid probate delays, protects minor beneficiaries, and ensures your wishes are followed. You can create a last will and testament to specify how your assets are distributed and name guardians for minor children.
Missouri’s probate process typically takes 12 monthsRSMo § 473.023Verified Jul 14, 2026View source to 18 monthsRSMo § 473.023Verified Jul 14, 2026View source, making trust-based planning attractive for families wanting to avoid court involvement entirely. A revocable living trust allows assets to transfer directly to beneficiaries without probate delays or costs.
(Learn More: Read about revocable trusts in Missouri versus Nevada and the cost of probate in Missouri.)