How is Missouri for retirement?

Missouri has been quietly gaining popularity as a retirement destination for many reasons. Its charming landscapes, warm-hearted communities, and rich history are among the reasons retirees are turning their gaze toward the state. If you are wondering how Missouri fares as a retirement destination, here are important aspects you should know about the state.

Missouri is a good place to retire, and you can benefit from the low cost of living, delicious cuisines, plenty of beer and wine, four-season weather, and moderate taxes. If you plan to live entirely on Social Security payments and public pensions, you will be eligible for a full exemption on state income taxes. However, if your AGI is above $85,000 (single filer) or $100,000 (joint filer), you will pay state income taxes on Social Security income.

Is Missouri tax-friendly for retirement?

When considering where to retire, one of the things you should consider is the state's tax policy. Most seniors who rely on Social Security benefits and public pensions may be eligible for a full exemption from state income taxes on their income.

If your adjusted gross income (AGI) is less than $85,000 (single filer) or $100,000 (filing jointly), you won't pay income taxes on Social Security income. However, if your income exceeds the AGI cut-offs, your Social Security benefits will be subject to state income taxes. Additionally, public pensions may be eligible for a significant deduction.

Other retirement incomes such as private pensions and income from retirement savings plans are subject to state income taxes. However, you will receive a $6,000 exemption if your MAGI is below $25,000 (single filer), or $32,000 (joint filer). The state income tax bracket ranges between 0% to 5.4%, depending on your income and filing status.

How much are sales taxes in Missouri?

The amount of sales taxes you pay in Missouri depends on the county and city you live in since the state and local governments collect sales taxes. The statewide sales tax rate is 4.23%, while local government sales taxes can go up to 5.78%. On average, the total sales tax rate is about 7.81%.

Missouri is one of the states that levy sales taxes on food. The state collects a reduced sales tax rate of 1.225%, which mainly goes to public school funding. Localities also collect an additional grocery sales tax.

How much are property taxes in Missouri?

Missouri has an effective property tax rate of 0.88%, which is slightly below the national average. However, property tax rates may vary depending on the county or city you live in. A typical Missouri homeowner pays about $880 in property taxes for every $100,000 in property value.

Senior homeowners and renters may be eligible for the Missouri property tax credit, which offers some property tax relief. The tax credit can go up to $1,100 for homeowners and up to $750 for renters.

To be eligible for the property tax credit, you must be age 65 or older, you must own and occupy the property for the full year, and your household income must be below $30,000 (if you are a single filer) or $34,000 (if you are a joint filer). If you are a part-year owner or renter, your household income must be below $27,000 if you are a single filer, or $29,500 (if you are a joint filer).

Pros of retiring in Missouri

Low cost of living

One of the benefits of retiring in Missouri is the low cost of living. You will pay less for everyday expenses like groceries, utilities, and gas. The overall average cost of living makes Missouri one of the cheapest states to live in.

Good food

Given its history with German, French, and Italian immigrants, Missouri is a melting pot of culinary delights. You will find plenty of taste menu options ranging from BBQ, pizzas, provel cheese, toasted ravioli, and charcuterie, as well as ethnic foods.

Missouri is ranked the third best state for BBQ, with Kansas City and St. Louis being the popular barbeque hubs in the state; Kansas City BBQ is cooked in low heat over a long time in large pits, while St. Louis barbeque can come off a smoker or grill.

Lots of beer and wine

Inspired by its rich history with German immigrants, Missouri has plenty of beer and wine. St. Louis is home to Anheuser-Busch, the largest beer plant in the country; its iconic beer brands include Budweiser and Corona. There are over 150 craft beer breweries, mostly in St. Louis and Kansas City.

If you prefer wine over beer, you will have plenty of options; Missouri has a wine region, and German settlers have been growing grapes and making wines for nearly a century.

Outdoor recreation

The state is home to 6 national parks and over 100 state parks covering over 160,000 acres. There are over 1,000 miles of hiking and biking trails and plenty of camping sites. There are many lakes and rivers, which offer opportunities for fishing; Missouri produces some of the best trout, catfish, bass, and crappie in the country.

Farmlands

Missouri is an agricultural state, you can see huge tracks of farmlands as you drive around the state. There are over 100,000 farms, the second-largest in the nation after Texas, covering 66% of the state, out of which 90% is privately owned and operated. Some of the farm products produced in the state include rice, corn, soybeans, and cotton. The state also raises turkey, beef, and hogs. You can find fresh local foods in the farmer’s markets.

Cons of retiring in Missouri

Severe weather

Summers can get hot and humid, with temperatures reaching highs of 80s and 90s; 100s are also not uncommon. During the winter, it can get chilly, and temperatures often fall below freezing. The state also sits on the edge of the tornado alley, and it is susceptible to tornadoes during the spring season.

High crime rate

While the state has many relatively safe neighborhoods, Missouri has a high crime rate and is prone to gang activities. The most common crimes are violent crimes and property crimes, and it is ranked among the worst states for both types of crimes. While metropolitan areas like Kansas City and St. Louis have some of the highest crime rates in the state, you can also find gang activities in the rural areas of the state.

Poor road conditions

Given its central location in the nation, Missouri has a good road network. However, the road conditions are poor, with 25% of the roads being in unacceptable conditions and 9% of bridges requiring immediate repair. The road conditions can make driving challenging, and slow down commute town.

Poor healthcare

Missouri is ranked as among the worst states for retirement, and it scores poorly on the quality of healthcare, cost of healthcare, and the average emergency room wait time. It is ranked the 3^rd worst country for drug use, and it has the 10^th lowest life expectancy in the United States. However, given the state’s central location, you can travel to Illinois, Tennessee, Iowa, Kansas, or Arkansas to access specialized medical care.

Best places to retire in Missouri

Branson

Branson is the mecca for leisure and entertainment, and it has numerous music venues, live shows, festivals, dining options, and restaurants. It is surrounded by the Ozark Mountains, making it an ideal spot for retirees seeking an active retirement with picturesque views of the mountain. The city has an old-world feel, with the average age of residents being 58.

Springfield

Springfield offers lots of green spaces, beautiful parks, scenic trails, and wildlife. Though Springfield is a big city, it is surrounded by small rural communities that give residents an easy glimpse of nature while staying close to big city amenities. You can take a short trip through a variety of nature communities where you can see turkey, deer, and various bird species.

St. Louis

St. Louis offers a blend of urban lifestyle and serene neighborhoods, with plenty of amenities including restaurants, entertainment, art galleries, shopping malls, museums, theatres, and a public transit system. There are lots of green spaces where residents can stay active. Despite St. Louis being a big city, it is unbelievably affordable and you can stretch your retirement dollars.

Jefferson City

Jefferson City is the state’s capital, and it is one of the best lake towns in the state. Its riverfront area offers a quieter, relaxed retirement where retirees can enjoy scenic views of nature. The downtown area offers a small-town feel, but with a variety of quant shops eateries, bars, and shopping options.