On July 10, 2025, Missouri Governor Mike Kehoe enacted two significant bills that are poised to influence taxpayers’ financial decisions and employment planning: HB 594 and HB 567. One notable provision includes a new Capital Gains Exemption.
Below is an overview of the modifications, their potential impact and our offerings to assist you in navigating these developments.
MO House Bill 594
Individual Capital Gains
With the signing of HB 594, starting January 1, 2025, all Missourians will be able to fully deduct capital gains income recognized at the federal level when calculating their Missouri taxable income. This includes profits from selling real estate property, stocks, businesses, or any appreciated assets. This provision aims to enhance Missouri’s competitive edge for investors, business owners and individuals engaged in wealth transition.
Corporate Capital Gains Relief May Be Coming Soon
As it stands, only individuals are eligible for the capital gains deduction. However, this will change if the state’s individual income tax rate falls to 4.5% or lower in the future.
Personal Care Essentials Exempted from Sales Tax
Missouri will now eliminate both state and local sales taxes on groceries, feminine hygiene products, diapers and incontinence supplies.
MO House Bill 567
Changes Regarding Minimum Wage and Paid Sick Leave
With the signing of HB 567, changes were made to wage and leave regulations to make it easier for employers in Missouri to comply with the regulations. The changes are effective as of August 28, 2025. Some of the detailed charges are:
- Minimum wage is fixed at $15/hour with no more automatic Consumer Price Index adjustments; Applies to both public and private employers
- Paid sick leave mandates have been repealed
This is a great time for businesses to revise their compensation structures alongside human resources processes, especially for small and midsize employers.
How Anders Can Help
At Anders, we are diligently collaborating with our clients to prepare for these forthcoming changes. While new opportunities emerge under these laws, they also create critical planning decisions:
- Is it more advantageous to accelerate or delay a significant sale of assets?
- How will the entity structure affect taxation under the new policies?
- In what ways can compliance with wage laws be ensured without adding complexity?
Now is the time to act. Reach out to your Anders advisor or contact us here to schedule a planning session.
We want to make sure you are not just reacting to Missouri’s tax reform—but taking full advantage of it.
