Gov. Kehoe proposes income tax elimination

By: Zac Scott

JEFFERSON CITY, Mo. (KQTV) -- Missouri Governor Mike Kehoe is preparing for a meeting which may alter the state's economic status.

Kehoe is preparing a proposal to eliminate the Missouri income tax. Kehoe said the efforts are to keep the money with the Missourians who worked for it.

"We've got a well more thought-out plan, and anytime you can let Missourians keep more money in their pocket. It's always better than government spending it any day," said Kehoe.

On the surface, it's a great plan. But questions arise from Kehoe's statement.

According to the Missouri Office of Administration, Missouri's approximate general revenue in 2024 was $13.15 billion. Around $9.93 billion-$10.08 billion of the general revenue was paid for by the income taxes paid by Missourians.

Corporations in Missouri put forward $946.6 million into the general fund for their property taxes. Combined, Missouri property taxes make up almost ¾ of Missouri's general revenue.

The Missouri Office of Administration projected that 2025 income taxes will provide $13.4 billion for the general revenue.

Kehoe said the proposal will be his top priority during the 2026 Legislative Session.