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Foreign Tax Credit (Investments) in Missouri 2026

Calculate your foreign tax credit (investments) tax savings in Missouri. With Missouri's 4.8% top state tax rate, your combined savings are higher.

Missouri Tax Overview

State Income Tax
4.8%
progressive
Sales Tax
4.225%
avg combined: 8.29%
Property Tax Rate
0.91%
Median Income
$60,374

Top rate 4.8%. Federal income tax deduction allowed. Uses federal standard deduction.

Missouri Income Tax Brackets (Single)

0%
$0 - $1,207
2%
$1,207 - $2,414
2.5%
$2,414 - $3,621
3%
$3,621 - $4,828
3.5%
$4,828 - $6,035
4%
$6,035 - $7,242
4.5%
$7,242 - $8,449
4.8%
$8,449 +
Your bracket
$5,000
Est. Total Savings
No Limit
Max Deduction
Tax Credit
Deduction Type
26.8%
Combined Tax Rate

Foreign Tax Credit (Investments) Savings Calculator for Missouri

$
$

Federal Savings

$5,000

22% bracket

Missouri State

$0

4.8% rate

Total Savings

$5,000

26.8% combined

Tax credits reduce your tax bill dollar-for-dollar, regardless of your tax bracket.

Savings by Tax Bracket in Missouri

10%
$5,000
12%
$5,000
22%
$5,000
24%
$5,000
32%
$5,000
35%
$5,000
37%
$5,000

Includes 4.8% Missouri state tax on top of federal savings.

Eligibility Requirements

Investors paying foreign taxes on international investments

  • 1Foreign taxes paid
  • 2Credit or deduction choice
  • 3Form 1116 for over $300

Missouri residents should verify that this deduction is also recognized on their state tax return for additional savings of up to 4.8%.

Common Mistakes to Avoid

  • !Taking deduction instead of credit
  • !Missing foreign tax on 1099
  • !Forgetting to claim the deduction on your Missouri state return (missing up to 4.8% additional savings)

Missouri Filing Tips

Use Missouri's federal income tax deduction. Federal standard deduction applies. Social Security exempt if AGI below $100K (married). Property tax credit for seniors.

Required Tax Forms

Form 1116Form 1099-DIV

File these forms with your federal tax return to claim the foreign tax credit (investments). Missouri may require additional state-specific forms.

Other Tax Deductions in Missouri

Capital Loss Deduction

Investment

~$804
est. savings

Tax-Loss Harvesting

Investment

~$6,091
est. savings

Investment Interest Expense

Investment

~$1,827
est. savings

Qualified Dividend Tax Rate

Investment

~$3,655
est. savings

Opportunity Zone Investment

Investment

~$12,182
est. savings

1031 Like-Kind Exchange

Investment

~$36,545
est. savings

QSBS Exclusion (Section 1202)

Investment

~$121,818
est. savings

Installment Sale

Investment

~$9,745
est. savings

Foreign Tax Credit (Investments) in Neighboring States

Iowa

3.8% top rate (flat)

~$800
-4,200 vs Missouri

Illinois

4.95% top rate (flat)

~$800
-4,200 vs Missouri

Kentucky

4% top rate (flat)

~$800
-4,200 vs Missouri

Tennessee

No state income tax

~$800
-4,200 vs Missouri

Arkansas

4.7% top rate (progressive)

~$800
-4,200 vs Missouri

Oklahoma

4.75% top rate (progressive)

~$800
-4,200 vs Missouri

Kansas

5.7% top rate (progressive)

~$800
-4,200 vs Missouri

Nebraska

5.84% top rate (progressive)

~$800
-4,200 vs Missouri

Tax Calculators for Missouri Cities

Kansas CitySt. LouisSpringfieldColumbiaIndependenceLee's SummitLee's SummitOFallonSt. JosephSt. Charles

Calculate Your Full Tax Savings in Missouri

Use our free tax calculators to optimize your entire tax return for Missouri.

Income Tax CalculatorMissouri Income TaxFull Foreign Tax Credit (Investments) Guide

Frequently Asked Questions

How much can I save with the Foreign Tax Credit (Investments) in Missouri?

In Missouri, the foreign tax credit (investments) can save you an estimated $5,000 per year on a $5,000 deduction. This includes $5,000 in federal tax savings and $0 in Missouri state tax savings at the 4.8% marginal rate. The national average savings is $800/year.

What is the Missouri state income tax rate?

Missouri has a progressive income tax system with a top rate of 4.8%. Top rate 4.8%. Federal income tax deduction allowed. Uses federal standard deduction.

Who qualifies for the Foreign Tax Credit (Investments) in Missouri?

Investors paying foreign taxes on international investments. The eligibility requirements are the same whether you live in Missouri or another state, as this is a federal tax credit. However, your total savings will vary based on Missouri's 4.8% top state tax rate.

What tax forms do I need to claim the Foreign Tax Credit (Investments) in Missouri?

To claim the foreign tax credit (investments), you need to file Form 1116 and Form 1099-DIV with your federal return. Missouri residents should also check if the state allows this deduction on their state return for additional savings of up to 4.8%. Filing status affects your deduction limits and tax bracket.

Is the Foreign Tax Credit (Investments) better in Missouri than in states without income tax?

Yes, Missouri residents benefit more because the state's 4.8% top income tax rate means the deduction reduces both your federal AND state tax liability. In states with no income tax (like Texas, Florida, or Nevada), this deduction only reduces federal taxes. Your combined rate of 26.8% means more savings per dollar deducted.

What is the standard deduction in Missouri for 2026?

Missouri's standard deduction is $14,600 for single filers and $29,200 for married filing jointly. Use Missouri's federal income tax deduction. Federal standard deduction applies. Social Security exempt if AGI below $100K (married). Property tax credit for seniors.

Related Calculators

Capital Loss Deduction in Missouri

Avg savings: $660/year

Tax-Loss Harvesting in Missouri

Avg savings: $5,000/year

Investment Interest Expense in Missouri

Avg savings: $1,500/year

Qualified Dividend Tax Rate in Missouri

Avg savings: $3,000/year

Opportunity Zone Investment in Missouri

Avg savings: $10,000/year

1031 Like-Kind Exchange in Missouri

Avg savings: $30,000/year