Businesses in Missouri will experience significant changes in 2026 due to new provisions and updates to state taxes. Staying up to date on these state-level changes helps owners and business leaders successfully plan tax and financial strategies that stimulate growth.
The following changes went into effect as of January 1, 2026:
- Minimum wage increase
- Reduced excise tax on domestically made beer and malt liquor
- Eligibility for corporations’ capital gains tax exemption
- Statewide paid sick leave repeal
Minimum Wage Increase
Missouri’s state-level minimum wage increased from $13.75 an hour to $15 an hour on January 1. Public employers across the state are now subject to the minimum wage requirement. HB 567 also removed the provision enabling automatic annual raises, and the minimum wage will no longer be annually adjusted by the Consumer Price Index.
Why it Matters
Future changes to Missouri’s minimum wage will now require new legislative or voter action, which will impact future workforce planning and budgeting. It should be noted that employers engaged in retail or service businesses with annual gross income of less than $500,000 aren’t required to pay the state minimum wage but must still follow federal requirements.
Certain small businesses and restaurants may find both challenges and opportunities with this new provision, but preparation can help overcome those challenges and take advantage of those opportunities. Some employers may successfully adjust to the new wage requirements by altering staffing models, revising prices or reconsidering hours of operation. A higher wage may also help improve workforce stability by reducing employee turnover.
Excise Tax on Beer and Malt Liquor
Previously, Missouri charged six cents per gallon in excise tax on domestically made beer and malt liquor. The American Beer Act, signed into law by Missouri Governor Mike Kehoe in 2025, reduced the excise tax rate to two cents per gallon for domestic breweries. Foreign breweries are still subject to the six cents per gallon excise tax rate.
The law also changed how the state assesses fees for inspection and gauging on malt liquor, including certain beers. Beer produced by breweries in the U.S. will be charged 62 cents per barrel. Imported malt liquor will continue to be charged at $1.86 per barrel.
Why it Matters
Many industries have been impacted by tariffs, creating rising costs that small businesses struggle to manage. The tax reduction has the potential to help these businesses invest in their business rather than spend those same funds on taxes. Consumers could also enjoy a drop in price for domestically produced beer and malt liquor.
Capital Gains Tax Exemption for Corporations
The Missouri capital gains tax exemption went into effect on January 1, 2025. HB 594 allowed individuals to deduct 100% of all capital gains reported for federal income tax purposes when calculating their Missouri adjusted gross income. Individual taxpayers could apply this to both short-term and long-term capital gains from assets like stocks, real estate or cryptocurrency.
Under the new law, corporations are similarly allowed to deduct 100% of capital gains from their federal taxable income, but only once the top individual income tax rate in Missouri falls to 4.5% or lower. The exemption would take effect in the tax year following the year in which the rate reduction occurs. The top individual income tax rate for 2025 was 4.7%. As a result, corporations aren’t eligible for the deduction for the 2025 or 2026 tax years.
Why it Matters
Although Missouri is the first state to fully exempt capital gains tax, corporations won’t see the benefits of this policy in 2026 and should plan accordingly. Your tax preparer can review withholding and adjust them downward if you expect to be affected by the capital gains tax exemption.
Paid Sick Leave
Voters in Missouri approved a paid sick leave mandate in 2024 that was due to begin in 2026. Under the mandate, employees could accrue paid sick time. It was repealed through legislative action in 2025.
Why it Matters
If your organization made plans in the last year to alter or introduce new policies around sick leave accrual, take this time to review them. Although they remain largely at the employers’ discretion, paid sick leave policies can still be required by local ordinance or federal law.
Anders Tax advisors work closely with businesses to design tax strategies that help reduce their tax burden and give them a better foundation to grow on. Learn how our experience can make a difference in your financial planning, and the associated cost, by requesting a meeting below.