Missouri taxes individual income using progressive brackets that top out at 4.70 percent on taxable income over $9,000. Travel nurses accepting contracts in the state largest healthcare centers, St. Louis and Kansas City, face an additional 1.0 percent local earnings tax deducted directly from their taxable wages.
Balancing state income tax, local earnings taxes, and out-of-state resident credits requires clear contract review before your first shift.
St. Louis and Kansas City local earnings taxes
Both the City of St. Louis and Kansas City levy a mandatory 1.0 percent earnings tax on all wages earned by individuals working within city limits, regardless of where they live.
If you work at Barnes-Jewish Hospital in St. Louis or Saint Luke Hospital in Kansas City, your agency payroll will withhold the 1.0 percent city tax on your taxable hourly pay. This local tax is non-refundable and applies to base wages, overtime, and shift differentials. Tax-free housing and per diem stipends are exempt from the 1.0 percent earnings tax under local municipal ordinances.
You can calculate your estimated net earnings including local payroll taxes with our Contract Analyzer.
Filing Form MO-1040 and Form MO-NRI
Nonresident travel nurses report their Missouri income on Form MO-1040 and attach Form MO-NRI (Missouri Nonresident Income Percentage). Form MO-NRI determines the exact percentage of your federal adjusted gross income derived from Missouri sources.
Missouri calculates what your total tax would be on all your income, then multiplies that total by your Missouri percentage. If you earned $25,000 of your $75,000 annual income in Missouri, your nonresident percentage is 33.33 percent.
Review tax forms, standard deduction amounts, and filing thresholds directly on the Missouri Department of Revenue website.
Deductibility of federal income taxes in Missouri
Missouri is one of the few states that allows individuals to deduct a portion of their federal income tax liability on their state return. Nonresidents calculate a prorated federal tax deduction on Form MO-1040 based on their Missouri income ratio, which lowers Missouri taxable income.
To ensure your per diem allowances stay non-taxable on both federal and Missouri returns, you must maintain ongoing financial ties to your permanent tax home. Check your compliance readiness using our Tax Home Quiz.
Frequently asked questions
How does the 1 percent earnings tax work in St. Louis and Kansas City?
Both St. Louis and Kansas City levy a mandatory 1.0 percent local earnings tax on all gross taxable wages earned within city borders. This tax applies to nonresidents and is non-refundable.
Can travel nurses deduct federal income taxes on their Missouri return?
Yes. Missouri allows taxpayers to deduct a portion of their federal income tax liability on Form MO-1040, which lowers taxable income for nonresidents based on their Missouri income ratio.
What form allocates nonresident travel nursing income in Missouri?
Nonresident healthcare clinicians file Form MO-1040 and attach Form MO-NRI (Missouri Nonresident Income Percentage) to determine their state tax percentage.