If you serve in the military or have served, it helps to know exactly what a Missouri veteran property tax exemption does and does not cover. Missouri is home to Fort Leonard Wood near Waynesville and Whiteman Air Force Base near Knob Noster, and it draws many military families after a PCS, which is short for Permanent Change of Station, the official military move from one duty station to another. Missouri does not offer a broad disabled-veteran property tax exemption the way some states do, but it does have a narrow full exemption and an income-based credit that can help. This guide explains both in plain language and points you to the state's own sources. Tax law changes, so confirm the current rules before you file.
Missouri's Property Tax Exemption for Certain Veterans
Missouri's property tax break tied directly to a home is narrow. As the Missouri Department of Revenue Military Reference Guide explains, the Missouri Constitution exempts from property taxes all real property used as a homestead by any Missouri citizen who is a former prisoner of war with a total service-connected disability. A prisoner of war, often shortened to POW, is a service member who was captured and held by the enemy.
In plain terms, this full homestead exemption is limited to former POWs who also carry a total, meaning 100 percent, service-connected disability rating from the U.S. Department of Veterans Affairs, known as the VA. It is not a general benefit for all 100 percent disabled veterans. The Department of Revenue does not run this exemption; you apply through your local County Assessor's office.
The Missouri Property Tax Credit for Disabled Veterans
If you do not qualify for the POW exemption, Missouri's main relief comes through the Missouri Property Tax Credit, often called the "circuit breaker." It is a credit, not an exemption, which means it gives back part of the property tax or rent you paid rather than removing value from your bill.
According to the Missouri Department of Revenue, the credit is worth up to $1,100 for homeowners who owned and occupied their home, and up to $750 for renters. The amount depends on the real estate taxes or rent you paid and on your total household income. The credit is available to certain people, including those who are 100 percent disabled as a result of military service, at any age. It also reaches homeowners and renters who are 65 or older, people who are fully disabled for other reasons, and surviving spouses age 60 or older who receive surviving spouse benefits. There are household income limits that set who qualifies and how large the credit is, and those limits differ for owners and renters, so check the Department of Revenue's qualification chart for the current year before you file. If you rent from a property that does not pay property tax, you are not eligible for the credit.
How Veteran Benefits Count Toward the Credit
There is a wrinkle that works in veterans' favor. The Department of Revenue's Military Reference Guide explains that if you are 100 percent disabled as a result of military service, you do not have to include your VA payments and benefits in the household income used to figure the credit. You attach a letter from the VA showing the disability is 100 percent and from military service. That can help more service-disabled veterans qualify.
How It Works With Local Property Taxes
Property tax in Missouri is assessed and collected locally, by your county. The County Assessor values your home, and the County Collector bills the tax. The narrow POW exemption is handled by your County Assessor, while the property tax credit is claimed on a state form through the Department of Revenue. Because local rates differ, the value of any relief depends on where you live.
If you are weighing where to settle, our guide to the military bases in Missouri and our PCS to Fort Leonard Wood guide can help you picture the local cost of owning in each market.
Military Pay and Missouri State Income Tax
Missouri has a state income tax, but it shields the pay most service members and retirees rely on. The Military Reference Guide explains that your total military retirement benefits can be subtracted from your federal adjusted gross income on your Missouri return. In plain terms, Missouri does not tax your military pension.
Active-duty pay gets the same treatment. Under state law, a deduction of 100 percent of the income you receive as a member of the active-duty component of the Armed Forces may be taken, as long as the income is included in your federal adjusted gross income. Pay for National Guard inactive-duty training, annual training, and reserve service is also fully deductible. VA disability compensation is not part of your federal income, so Missouri does not tax it either.
A Note for Military Spouses: MSRRA
If you are a military spouse, the Military Spouse Residency Relief Act, known as MSRRA, may matter to you. MSRRA is a federal law that lets a military spouse keep a home state for tax and voting purposes even after moving on military orders. You do not automatically become a Missouri resident just because your service member got orders here.
The Department of Revenue notes that, beginning with the 2023 tax year, a service member and spouse may elect a state of residence based on the service member's residence, the spouse's residence, or the service member's permanent duty station. Because that choice affects both states' taxes, confirm yours before you file. For the property tax relief in this guide, what usually matters most is whether the home is your principal residence.
