Missouri offers strong tax benefits for veterans, particularly for retirees and disabled veterans. If you're a veteran considering Missouri or already living here, understanding these benefits can save you thousands of dollars annually.

Bottom Line Up Front

Here's what Missouri offers veterans:

Military retirement pay: 100% exempt from state income tax (as of 2024)
Property tax credit: Up to $1,100 annually for 100% disabled veterans (lower amounts for partial disability)
VA disability pay: Completely tax-free (federal and state)
Surviving spouse benefits: Property tax exemption available for unremarried spouses
Business license exemption: Available in some jurisdictions for disabled veterans
No estate or inheritance tax: Missouri eliminated these in 2010

Potential annual savings for a 100% disabled veteran: $2,500-$4,500+ depending on income and property value.

Income Tax Treatment for Veterans

Military Retirement Pay - Fully Exempt (Since 2024)

Missouri fully exempts military retirement pay from state income tax. This exemption became complete in tax year 2024, making Missouri one of the most veteran-friendly states in the Midwest.

What this means:

Retire with $30,000/year military pension? Keep all of it
Retire with $50,000/year? Still keep every penny
No age restrictions, no income limits, no phase-outs

Prior to 2024, Missouri offered partial exemptions that increased with age. Now, all military retirees benefit equally regardless of age.

VA Disability Compensation - Tax-Free

All VA disability compensation is exempt from federal and state taxation. Whether you receive $165/month for a 10% rating or $3,800+/month for 100% with dependents, you won't pay a dime in taxes on it.

Survivor Benefit Program (SBP)

SBP payments are also exempt from Missouri state income tax. If you're receiving military survivor benefits, Missouri won't tax them.

State Tax Rates (For Other Income)

Missouri operates on a graduated income tax system:

2024-2025 Tax Brackets:

0% on income up to $1,207
2% on income between $1,207-$2,414
3% on income between $2,414-$3,621
4% on income between $3,621-$4,828
5% on income between $4,828-$6,035
5.3% on income over $6,035

Standard deduction: $12,550 (single), $25,100 (married filing jointly) for 2024

Note: Missouri's top rate of 5.3% is scheduled to phase down to 4.5% by 2026 through gradual reductions.

Comparison to Neighboring States

State	Military Retirement	Income Tax Rate	Property Tax Benefits (100%)
Missouri	100% exempt	0-5.3%	$1,100 credit
Kansas	Partial exemption	3.1-5.7%	Varies by county
Iowa	Partial ($6K-$12K exempt)	4.4-5.7%	Varies
Arkansas	Partial ($6K exempt)	2-4.7%	Full exemption
Illinois	100% exempt	4.95% flat	Limited exemption
Kentucky	Partial ($31K exempt)	4% flat	Varies
Tennessee	N/A	No income tax	Limited exemption

Missouri's combination of zero tax on military retirement and straightforward property tax credit makes it highly competitive, especially compared to Kansas and Iowa.

Property Tax Credit for Disabled Veterans

100% Disabled Veterans - Up to $1,100 Annual Credit

If you're rated 100% Permanent and Total (P&T) by the VA, you're eligible for an annual property tax credit of up to $1,100 on your primary residence.

This is a credit, not an exemption. You still pay your property tax bill, then claim the credit when filing your Missouri income tax return (or claim it directly if you don't owe income tax).

Key details:

Credit amount: Up to $1,100 per year
No property value cap
Must be primary residence
Must have 100% P&T rating
Claim on Form MO-PTC (Property Tax Credit)

Real-World Examples

St. Louis County

Home value: $250,000
County property tax rate: ~1.2%
Annual property tax: $3,000
Annual credit: $1,100
Effective tax after credit: $1,900

Kansas City (Jackson County)

Home value: $220,000
County property tax rate: ~1.5%
Annual property tax: $3,300
Annual credit: $1,100
Effective tax after credit: $2,200

Columbia (Boone County)

Home value: $280,000
County property tax rate: ~1.0%
Annual property tax: $2,800
Annual credit: $1,100
Effective tax after credit: $1,700

Springfield (Greene County)

Home value: $195,000
County property tax rate: ~1.1%
Annual property tax: $2,145
Annual credit: $1,100
Effective tax after credit: $1,045

Partial Disability Ratings - Graduated Credits

Missouri also offers property tax credits for veterans with disability ratings below 100%, though the amounts are smaller:

Property Tax Credit by Disability Rating:

100% disabled: Up to $1,100
90% disabled: Up to $880
80% disabled: Up to $660
70% disabled: Up to $440
60% disabled: Up to $220
50% disabled: Up to $110

Important: To qualify for partial disability credits, you must have been awarded disability compensation by the VA for a service-connected disability. The rating letter from the VA is your proof.

Surviving Spouse Property Tax Exemption

Unremarried surviving spouses of 100% disabled veterans or veterans who died in service may qualify for the same property tax credit benefits.

Eligibility requirements:

Must be unremarried
Must have been married to veteran at time of death
Veteran was either 100% P&T or died from service-connected disability
Property must be primary residence

How to claim: Same process as disabled veterans - file Form MO-PTC with your Missouri income tax return.

Vehicle Registration Benefits

Disabled Veterans - Free License Plates

Missouri offers free license plates to honorably discharged veterans with service-connected disabilities.

Eligibility:

Any service-connected disability rating (no minimum percentage)
Must have VA rating documentation
Applies to one vehicle

Available specialty plates:

Disabled Veteran
Purple Heart
Medal of Honor
Former Prisoner of War
Combat Action Badge/Ribbon
Branch-specific plates (Army, Navy, Air Force, Marines, Coast Guard)

Application process:

Visit your county license bureau
Provide VA rating letter
Provide proof of honorable discharge (DD-214)
Complete application for specialty plates

Fees: First set of plates is free. Replacement plates have nominal fee ($3.50-$11.00 depending on type).

Property Tax on Vehicles

Missouri assesses personal property tax on vehicles. While there's no blanket exemption for veterans, the free license plates represent a savings of $15.50-$30.00 per year depending on plate type.

Some counties may offer additional relief - check with your county assessor's office.

Other Financial Benefits

Sales Tax Exemption on Certain Items

Missouri does not offer general sales tax exemptions for veterans. However, prescription medications and medical equipment are exempt from state sales tax for all residents.

State sales tax rate: 4.225% (plus local taxes, typically 2-5%)

Business License Benefits

Some Missouri municipalities offer business license fee reductions or exemptions for disabled veterans starting businesses.

Not statewide - varies by city/county. Check with your local business licensing office.

Hunting and Fishing Licenses

Missouri offers free lifetime hunting and fishing permits to honorably discharged veterans who are Missouri residents and who have a service-connected disability of 80% or higher.

Standard costs (what you save):

Annual hunting permit: $19
Annual fishing permit: $12
Lifetime Sportsman Combo (hunting + fishing): $500+

How to apply: Contact Missouri Department of Conservation with VA rating letter and DD-214.

State Parks

Missouri offers free admission to state parks for all veterans with a service-connected disability rating of 30% or higher.

What this includes:

Free day-use entry
Does not include camping fees
Applies to all Missouri state parks

Missouri has 92 state parks - this benefit has real value if you enjoy outdoor recreation.

Motor Fuel Tax Refund

100% disabled veterans in Missouri may qualify for a motor fuel tax refund of up to $50 per year.

Eligibility:

100% P&T disabled veteran
Missouri resident
Own and operate a vehicle

How to claim: File Form 4923 with the Missouri Department of Revenue.

Financial Impact Analysis

Let's calculate the 20-year financial impact for a 100% disabled veteran retiring in Missouri vs. other states.

Scenario: E-8 Retiree, 20 Years Service, 100% Disabled

Annual income:

Military retirement: $35,000
VA disability: $45,000 (100% with dependents)
Total: $80,000

Home: $250,000 (median for Missouri cities) Property tax: ~$2,750/year (1.1% average)

Missouri Savings Over 20 Years

Benefit	Annual Savings	20-Year Total
Property tax credit	$1,100	$22,000
Military retirement (vs 5% state tax)	$1,750	$35,000
Free license plates	$25	$500
Hunting/fishing license	$31	$620
Motor fuel tax refund	$50	$1,000
State park admission	$50	$1,000
TOTAL	$3,006	$60,120

Note: This doesn't account for inflation or the income tax rate reduction to 4.5% by 2026, which would increase savings.

Comparison: Missouri vs. Kansas

Same scenario, but in Kansas (which only partially exempts military retirement):

State	Property Tax Savings	Income Tax Savings	Total 20-Year Savings
Missouri	$22,000	$35,000	$60,120
Kansas	Varies (less generous)	~$15,000 (partial exemption)	~$40,000

Missouri advantage: $20,000+ over 20 years

Comparison: Missouri vs. Illinois

Illinois has no income tax but higher property taxes:

State	Property Tax Savings	Income Tax Savings	Total 20-Year Savings
Missouri	$22,000	$35,000	$60,120
Illinois	Minimal	$35,000	~$40,000

Missouri advantage: $20,000+ over 20 years (plus lower overall property tax burden)

How to Claim Your Benefits

Step 1: Property Tax Credit

Timeline: Claim annually when filing Missouri income tax return

Required documents:

VA rating decision letter showing disability percentage
Property tax receipt showing amount paid
Missouri driver's license or state ID
Deed or mortgage statement proving ownership

Where to file: Missouri Department of Revenue

Form: MO-PTC (Property Tax Credit)
File with: Your annual Missouri income tax return (Form MO-1040)
Online filing: Available through Missouri Online Filing or tax software
Paper filing: Mail to Missouri Department of Revenue, PO Box 2200, Jefferson City, MO 65105-2200

If you don't owe income tax: You can still claim the credit! File Form MO-PTC separately to receive the credit as a refund.

Deadline: April 15 (same as federal tax deadline) or October 15 if you file an extension

Step 2: Military Retirement Income Exemption

This is automatic if you file your Missouri income tax return correctly.

How to claim:

File Form MO-1040 (Missouri Individual Income Tax Return)
Report your military retirement income
Subtract it using the military retirement pension exemption line
The exemption automatically reduces your taxable income to zero for that source

Documents to keep: 1099-R showing military retirement income

Step 3: Free License Plates

Where: County license bureau

Documents needed:

VA rating decision letter (showing any percentage disability)
DD-214 (Certificate of Release or Discharge)
Current vehicle registration
Missouri driver's license
Proof of insurance

Process:

Visit county license office in person
Provide documentation
Complete application for disabled veteran plates
Receive plates (first set free)

Find your county office: Missouri Department of Revenue - License Offices

Step 4: Hunting/Fishing License (80%+ Disabled)

Where: Missouri Department of Conservation

How to apply:

Visit MDC website or call (573) 751-4115
Provide VA rating letter showing 80%+ disability
Provide DD-214
Complete lifetime permit application

Processing time: 2-4 weeks

Step 5: State Park Admission (30%+ Disabled)

How it works: Show your VA rating letter at park entrance

Best practice: Carry a copy of your rating letter when visiting state parks

Step 6: Motor Fuel Tax Refund (100% Disabled)

When: File annually

How:

Download Form 4923 from Missouri Department of Revenue
Provide documentation of 100% P&T rating
Estimate fuel consumption (up to amount that qualifies for $50 refund)
Submit with supporting documents

File with: Missouri Department of Revenue, PO Box 3365, Jefferson City, MO 65105-3365

Frequently Asked Questions

Do I need to reapply for the property tax credit every year?

Yes. The property tax credit must be claimed annually on your Missouri income tax return. You'll need to provide your property tax receipt and VA rating letter each year.

What if I'm rated 100% but not Permanent & Total?

You should still qualify for the $1,100 credit based on your 100% rating. However, if your rating is subject to future re-evaluation, you'll need to maintain that rating to continue receiving the credit.

Can I get both the property tax credit and the senior citizen credit?

No. If you qualify for multiple property tax credits (veteran, senior, disabled person), you can only claim the highest one. For most 100% disabled veterans under 65, the veteran credit of $1,100 is the best option.

Does the property tax credit apply to second homes or rental properties?

No. The credit applies only to your primary residence where you live most of the year.

What happens if my property tax is less than $1,100?

You receive credit only up to the amount of tax you actually paid. For example, if your property tax is $800, you receive $800 in credit, not $1,100.

Are military retirement benefits taxed if I move to Missouri from another state?

No. As long as you establish Missouri residency, all military retirement pay is exempt from state income tax regardless of where you served or previously lived.

Can my surviving spouse keep the property tax credit after I die?

Yes, if your surviving spouse:

Remains unremarried
Continues to own and occupy the home as primary residence
You were 100% disabled or died from service-connected disability

Your spouse should contact the Missouri Department of Revenue for guidance on continuing the benefit.

What if my county denies my property tax credit claim?

If your credit is denied:

Request explanation in writing
Verify you submitted all required documentation
Contact Missouri Department of Revenue: (573) 751-3505
Contact your county veterans service officer for assistance
You have the right to appeal the denial

Do I need to be retired from the military to get these benefits?

Property tax credit: No, only need qualifying VA disability rating
Income tax exemption on military retirement: Yes, must be receiving military retirement pay
Free license plates: No, only need service-connected disability rating
Hunting/fishing license: No, only need 80%+ disability rating

Does Missouri tax my TSP or 401(k) withdrawals?

Yes, but at Missouri's modest rates (currently max 5.3%, dropping to 4.5% by 2026). Qualified retirement account withdrawals are treated as regular income. However, military retirees benefit from the military retirement exemption.

Will moving to Missouri from a high-tax state save me money?

Likely yes, especially if you're receiving military retirement income. Compared to states like California (13.3% top rate), New York (10.9%), or Illinois (4.95% flat with high property taxes), Missouri offers significant savings.

Example: E-7 retiree with $30,000/year pension

California state tax: ~$900/year
Missouri state tax: $0
Annual savings: $900
20-year savings: $18,000+

Can I claim the property tax credit if I don't file a Missouri income tax return?

Yes! Even if your income is low enough that you don't owe Missouri income tax, you can still file Form MO-PTC to claim the property tax credit as a refund.

What if I own my home jointly with my spouse?

You can still claim the full credit as long as:

You're a qualifying disabled veteran
The home is your primary residence
You paid the property taxes

Joint ownership doesn't reduce the credit amount.

Does the property tax credit reduce my federal taxes?

Indirectly. If you itemize deductions on your federal return, you can only deduct property taxes actually paid (net of the credit). However, most veterans benefit more from the standard deduction anyway.

Key Takeaways

Missouri delivers meaningful financial value for veterans:

100% disabled veterans save $60,000+ over 20 years through combined tax benefits
All military retirees keep their entire retirement check - no state taxes
Disabled veterans get free license plates and reduced property taxes
80%+ disabled veterans receive free lifetime hunting and fishing permits
30%+ disabled veterans get free state park admission

Combined with Missouri's cost of living (12.6% below national average), these benefits stretch your retirement dollars significantly further.

If you're 100% P&T and haven't claimed the property tax credit yet, file Form MO-PTC with your next Missouri income tax return. You could receive $1,100 back.

Resources

Missouri Veterans Commission: (573) 751-3779 | mvc.dps.mo.gov
Property Tax Credit Info: Missouri Department of Revenue - (573) 751-3505
County Veterans Service Officers: Find yours at mvc.dps.mo.gov
License Plate Info: dor.mo.gov/motor-vehicle
State Veterans Benefits Handbook: Download from mvc.dps.mo.gov

Information current as of January 2025. Tax laws and benefit amounts may change. Verify specific details with the Missouri Department of Revenue and Missouri Veterans Commission.

Bottom Line Up Front

Here's what Missouri offers veterans:

Military retirement pay: 100% exempt from state income tax (as of 2024)
Property tax credit: Up to $1,100 annually for 100% disabled veterans (lower amounts for partial disability)
VA disability pay: Completely tax-free (federal and state)
Surviving spouse benefits: Property tax exemption available for unremarried spouses
Business license exemption: Available in some jurisdictions for disabled veterans
No estate or inheritance tax: Missouri eliminated these in 2010

Potential annual savings for a 100% disabled veteran: $2,500-$4,500+ depending on income and property value.

Income Tax Treatment for Veterans

Military Retirement Pay - Fully Exempt (Since 2024)

Missouri fully exempts military retirement pay from state income tax. This exemption became complete in tax year 2024, making Missouri one of the most veteran-friendly states in the Midwest.

What this means:

Retire with $30,000/year military pension? Keep all of it
Retire with $50,000/year? Still keep every penny
No age restrictions, no income limits, no phase-outs

Prior to 2024, Missouri offered partial exemptions that increased with age. Now, all military retirees benefit equally regardless of age.

VA Disability Compensation - Tax-Free

Survivor Benefit Program (SBP)

SBP payments are also exempt from Missouri state income tax. If you're receiving military survivor benefits, Missouri won't tax them.

State Tax Rates (For Other Income)

Missouri operates on a graduated income tax system:

2024-2025 Tax Brackets:

0% on income up to $1,207
2% on income between $1,207-$2,414
3% on income between $2,414-$3,621
4% on income between $3,621-$4,828
5% on income between $4,828-$6,035
5.3% on income over $6,035

Standard deduction: $12,550 (single), $25,100 (married filing jointly) for 2024

Note: Missouri's top rate of 5.3% is scheduled to phase down to 4.5% by 2026 through gradual reductions.

Comparison to Neighboring States

State	Military Retirement	Income Tax Rate	Property Tax Benefits (100%)
Missouri	100% exempt	0-5.3%	$1,100 credit
Kansas	Partial exemption	3.1-5.7%	Varies by county
Iowa	Partial ($6K-$12K exempt)	4.4-5.7%	Varies
Arkansas	Partial ($6K exempt)	2-4.7%	Full exemption
Illinois	100% exempt	4.95% flat	Limited exemption
Kentucky	Partial ($31K exempt)	4% flat	Varies
Tennessee	N/A	No income tax	Limited exemption

Missouri's combination of zero tax on military retirement and straightforward property tax credit makes it highly competitive, especially compared to Kansas and Iowa.

Property Tax Credit for Disabled Veterans

100% Disabled Veterans - Up to $1,100 Annual Credit

If you're rated 100% Permanent and Total (P&T) by the VA, you're eligible for an annual property tax credit of up to $1,100 on your primary residence.

This is a credit, not an exemption. You still pay your property tax bill, then claim the credit when filing your Missouri income tax return (or claim it directly if you don't owe income tax).

Key details:

Credit amount: Up to $1,100 per year
No property value cap
Must be primary residence
Must have 100% P&T rating
Claim on Form MO-PTC (Property Tax Credit)

Real-World Examples

St. Louis County

Home value: $250,000
County property tax rate: ~1.2%
Annual property tax: $3,000
Annual credit: $1,100
Effective tax after credit: $1,900

Kansas City (Jackson County)

Home value: $220,000
County property tax rate: ~1.5%
Annual property tax: $3,300
Annual credit: $1,100
Effective tax after credit: $2,200

Columbia (Boone County)

Home value: $280,000
County property tax rate: ~1.0%
Annual property tax: $2,800
Annual credit: $1,100
Effective tax after credit: $1,700

Springfield (Greene County)

Home value: $195,000
County property tax rate: ~1.1%
Annual property tax: $2,145
Annual credit: $1,100
Effective tax after credit: $1,045

Partial Disability Ratings - Graduated Credits

Missouri also offers property tax credits for veterans with disability ratings below 100%, though the amounts are smaller:

Property Tax Credit by Disability Rating:

100% disabled: Up to $1,100
90% disabled: Up to $880
80% disabled: Up to $660
70% disabled: Up to $440
60% disabled: Up to $220
50% disabled: Up to $110

Important: To qualify for partial disability credits, you must have been awarded disability compensation by the VA for a service-connected disability. The rating letter from the VA is your proof.

Surviving Spouse Property Tax Exemption

Unremarried surviving spouses of 100% disabled veterans or veterans who died in service may qualify for the same property tax credit benefits.

Eligibility requirements:

Must be unremarried
Must have been married to veteran at time of death
Veteran was either 100% P&T or died from service-connected disability
Property must be primary residence

How to claim: Same process as disabled veterans - file Form MO-PTC with your Missouri income tax return.

Vehicle Registration Benefits

Disabled Veterans - Free License Plates

Missouri offers free license plates to honorably discharged veterans with service-connected disabilities.

Eligibility:

Any service-connected disability rating (no minimum percentage)
Must have VA rating documentation
Applies to one vehicle

Available specialty plates:

Disabled Veteran
Purple Heart
Medal of Honor
Former Prisoner of War
Combat Action Badge/Ribbon
Branch-specific plates (Army, Navy, Air Force, Marines, Coast Guard)

Application process:

Visit your county license bureau
Provide VA rating letter
Provide proof of honorable discharge (DD-214)
Complete application for specialty plates

Fees: First set of plates is free. Replacement plates have nominal fee ($3.50-$11.00 depending on type).

Property Tax on Vehicles

Some counties may offer additional relief - check with your county assessor's office.

Other Financial Benefits

Sales Tax Exemption on Certain Items

Missouri does not offer general sales tax exemptions for veterans. However, prescription medications and medical equipment are exempt from state sales tax for all residents.

State sales tax rate: 4.225% (plus local taxes, typically 2-5%)

Business License Benefits

Some Missouri municipalities offer business license fee reductions or exemptions for disabled veterans starting businesses.

Not statewide - varies by city/county. Check with your local business licensing office.

Hunting and Fishing Licenses

Missouri offers free lifetime hunting and fishing permits to honorably discharged veterans who are Missouri residents and who have a service-connected disability of 80% or higher.

Standard costs (what you save):

Annual hunting permit: $19
Annual fishing permit: $12
Lifetime Sportsman Combo (hunting + fishing): $500+

How to apply: Contact Missouri Department of Conservation with VA rating letter and DD-214.

State Parks

Missouri offers free admission to state parks for all veterans with a service-connected disability rating of 30% or higher.

What this includes:

Free day-use entry
Does not include camping fees
Applies to all Missouri state parks

Missouri has 92 state parks - this benefit has real value if you enjoy outdoor recreation.

Motor Fuel Tax Refund

100% disabled veterans in Missouri may qualify for a motor fuel tax refund of up to $50 per year.

Eligibility:

100% P&T disabled veteran
Missouri resident
Own and operate a vehicle

How to claim: File Form 4923 with the Missouri Department of Revenue.

Financial Impact Analysis

Let's calculate the 20-year financial impact for a 100% disabled veteran retiring in Missouri vs. other states.

Scenario: E-8 Retiree, 20 Years Service, 100% Disabled

Annual income:

Military retirement: $35,000
VA disability: $45,000 (100% with dependents)
Total: $80,000

Home: $250,000 (median for Missouri cities) Property tax: ~$2,750/year (1.1% average)

Missouri Savings Over 20 Years

Benefit	Annual Savings	20-Year Total
Property tax credit	$1,100	$22,000
Military retirement (vs 5% state tax)	$1,750	$35,000
Free license plates	$25	$500
Hunting/fishing license	$31	$620
Motor fuel tax refund	$50	$1,000
State park admission	$50	$1,000
TOTAL	$3,006	$60,120

Note: This doesn't account for inflation or the income tax rate reduction to 4.5% by 2026, which would increase savings.

Comparison: Missouri vs. Kansas

Same scenario, but in Kansas (which only partially exempts military retirement):

State	Property Tax Savings	Income Tax Savings	Total 20-Year Savings
Missouri	$22,000	$35,000	$60,120
Kansas	Varies (less generous)	~$15,000 (partial exemption)	~$40,000

Missouri advantage: $20,000+ over 20 years

Comparison: Missouri vs. Illinois

Illinois has no income tax but higher property taxes:

State	Property Tax Savings	Income Tax Savings	Total 20-Year Savings
Missouri	$22,000	$35,000	$60,120
Illinois	Minimal	$35,000	~$40,000

Missouri advantage: $20,000+ over 20 years (plus lower overall property tax burden)

How to Claim Your Benefits

Step 1: Property Tax Credit

Timeline: Claim annually when filing Missouri income tax return

Required documents:

VA rating decision letter showing disability percentage
Property tax receipt showing amount paid
Missouri driver's license or state ID
Deed or mortgage statement proving ownership

Where to file: Missouri Department of Revenue

Form: MO-PTC (Property Tax Credit)
File with: Your annual Missouri income tax return (Form MO-1040)
Online filing: Available through Missouri Online Filing or tax software
Paper filing: Mail to Missouri Department of Revenue, PO Box 2200, Jefferson City, MO 65105-2200

If you don't owe income tax: You can still claim the credit! File Form MO-PTC separately to receive the credit as a refund.

Deadline: April 15 (same as federal tax deadline) or October 15 if you file an extension

Step 2: Military Retirement Income Exemption

This is automatic if you file your Missouri income tax return correctly.

How to claim:

File Form MO-1040 (Missouri Individual Income Tax Return)
Report your military retirement income
Subtract it using the military retirement pension exemption line
The exemption automatically reduces your taxable income to zero for that source

Documents to keep: 1099-R showing military retirement income

Step 3: Free License Plates

Where: County license bureau

Documents needed:

VA rating decision letter (showing any percentage disability)
DD-214 (Certificate of Release or Discharge)
Current vehicle registration
Missouri driver's license
Proof of insurance

Process:

Visit county license office in person
Provide documentation
Complete application for disabled veteran plates
Receive plates (first set free)

Find your county office: Missouri Department of Revenue - License Offices

Step 4: Hunting/Fishing License (80%+ Disabled)

Where: Missouri Department of Conservation

How to apply:

Visit MDC website or call (573) 751-4115
Provide VA rating letter showing 80%+ disability
Provide DD-214
Complete lifetime permit application

Processing time: 2-4 weeks

Step 5: State Park Admission (30%+ Disabled)

How it works: Show your VA rating letter at park entrance

Best practice: Carry a copy of your rating letter when visiting state parks

Step 6: Motor Fuel Tax Refund (100% Disabled)

When: File annually

How:

Download Form 4923 from Missouri Department of Revenue
Provide documentation of 100% P&T rating
Estimate fuel consumption (up to amount that qualifies for $50 refund)
Submit with supporting documents

File with: Missouri Department of Revenue, PO Box 3365, Jefferson City, MO 65105-3365

Frequently Asked Questions

Do I need to reapply for the property tax credit every year?

Yes. The property tax credit must be claimed annually on your Missouri income tax return. You'll need to provide your property tax receipt and VA rating letter each year.

What if I'm rated 100% but not Permanent & Total?

Can I get both the property tax credit and the senior citizen credit?

Does the property tax credit apply to second homes or rental properties?

No. The credit applies only to your primary residence where you live most of the year.

What happens if my property tax is less than $1,100?

You receive credit only up to the amount of tax you actually paid. For example, if your property tax is $800, you receive $800 in credit, not $1,100.

Are military retirement benefits taxed if I move to Missouri from another state?

No. As long as you establish Missouri residency, all military retirement pay is exempt from state income tax regardless of where you served or previously lived.

Can my surviving spouse keep the property tax credit after I die?

Yes, if your surviving spouse:

Remains unremarried
Continues to own and occupy the home as primary residence
You were 100% disabled or died from service-connected disability

Your spouse should contact the Missouri Department of Revenue for guidance on continuing the benefit.

What if my county denies my property tax credit claim?

If your credit is denied:

Request explanation in writing
Verify you submitted all required documentation
Contact Missouri Department of Revenue: (573) 751-3505
Contact your county veterans service officer for assistance
You have the right to appeal the denial

Do I need to be retired from the military to get these benefits?

Property tax credit: No, only need qualifying VA disability rating
Income tax exemption on military retirement: Yes, must be receiving military retirement pay
Free license plates: No, only need service-connected disability rating
Hunting/fishing license: No, only need 80%+ disability rating

Does Missouri tax my TSP or 401(k) withdrawals?

Will moving to Missouri from a high-tax state save me money?

Example: E-7 retiree with $30,000/year pension

California state tax: ~$900/year
Missouri state tax: $0
Annual savings: $900
20-year savings: $18,000+

Can I claim the property tax credit if I don't file a Missouri income tax return?

Yes! Even if your income is low enough that you don't owe Missouri income tax, you can still file Form MO-PTC to claim the property tax credit as a refund.

What if I own my home jointly with my spouse?

You can still claim the full credit as long as:

You're a qualifying disabled veteran
The home is your primary residence
You paid the property taxes

Joint ownership doesn't reduce the credit amount.

Does the property tax credit reduce my federal taxes?

Key Takeaways

Missouri delivers meaningful financial value for veterans:

100% disabled veterans save $60,000+ over 20 years through combined tax benefits
All military retirees keep their entire retirement check - no state taxes
Disabled veterans get free license plates and reduced property taxes
80%+ disabled veterans receive free lifetime hunting and fishing permits
30%+ disabled veterans get free state park admission

Combined with Missouri's cost of living (12.6% below national average), these benefits stretch your retirement dollars significantly further.

If you're 100% P&T and haven't claimed the property tax credit yet, file Form MO-PTC with your next Missouri income tax return. You could receive $1,100 back.

Resources

Missouri Veterans Commission: (573) 751-3779 | mvc.dps.mo.gov
Property Tax Credit Info: Missouri Department of Revenue - (573) 751-3505
County Veterans Service Officers: Find yours at mvc.dps.mo.gov
License Plate Info: dor.mo.gov/motor-vehicle
State Veterans Benefits Handbook: Download from mvc.dps.mo.gov

Information current as of January 2025. Tax laws and benefit amounts may change. Verify specific details with the Missouri Department of Revenue and Missouri Veterans Commission.