Missouri · Foreign Tax Credit
Foreign Tax Credit in Missouri (2026)
Claim a dollar-for-dollar credit for income taxes paid to foreign governments to avoid double taxation on the same income. Missouri has a progressive income tax with a top rate of 4.7%, so a Missouri filer's combined marginal rate on the next dollar at $60,374 of income is about 16.7% (12% federal + 4.7% MO).
2026 savings example for Missouri
Planning estimate for a single filer earning $60,374 (Missouri median household income in LevyIO's state dataset) who claims a $5,000 credit. Federal tax uses the 2026 IRS brackets after the $16,100 standard deduction; MO tax uses the state brackets in LevyIO's dataset and assumes the state follows the federal treatment.
Estimated total savings
$5,000
Federal savings
$5,000
$5,065 → $65 · 12% bracket
MO state savings
$0
Federal credit only; check for a state credit
Combined marginal rate
16.7%
Credits do not depend on the bracket
Federal × Missouri marginal rates (2026, single)
Gross-income ranges include the federal standard deduction. The MO column is the state marginal rate at the midpoint of each range. A credit saves its face value regardless of bracket.
| Federal bracket | Gross income (single) | MO marginal | Combined | Per $1,000 |
|---|---|---|---|---|
| 10% | $16,100 - $28,500 | 3.5% | 13.5% | $1,000 |
| 12% | $28,500 - $66,500 | 4.7% | 16.7% | $1,000 |
| 22% | $66,500 - $121,800 | 4.7% | 26.7% | $1,000 |
| 24% | $121,800 - $217,875 | 4.7% | 28.7% | $1,000 |
| 32% | $217,875 - $272,325 | 4.7% | 36.7% | $1,000 |
| 35% | $272,325 - $656,700 | 4.7% | 39.7% | $1,000 |
| 37% | Over $656,700 | 4.7% | 41.7% | $1,000 |
Eligibility & forms
US taxpayers who paid or accrued foreign income taxes
- Tax must be imposed on you
- Tax must be a legal and actual foreign tax liability
- Tax must be an income tax or tax in lieu of income tax
Federal forms: Form 1116, Form 1040
Missouri filing notes
Missouri allows a federal income tax deduction based on federal tax actually paid, so filing software may differ from this estimate. Check the 2026 withholding formula, Form MO-1040, Form MO-A, and the DOR capital gains subtraction FAQ for current filing treatment.
Common mistakes: Not choosing between credit and deduction strategically; Exceeding the foreign tax credit limitation; Double-counting with foreign earned income exclusion.
Frequently asked questions
How much can the Foreign Tax Credit save a Missouri taxpayer in 2026?
Credits reduce tax dollar-for-dollar. In LevyIO's example, a single filer with $60,374 of income (the Missouri median household income in our state dataset) and a $5,000 credit would cut 2026 federal tax from $5,065 to $65, a $5,000 saving. Whether Missouri offers a matching state credit depends on the MO return, so the estimate counts federal savings only.
What is the Missouri income tax rate for 2026?
Missouri has a progressive income tax with a top rate of 4.7%. The MO standard deduction in LevyIO's dataset is $16,100 single / $32,200 married. 2026 DOR withholding formula uses indexed annual brackets to 4.7% above $9,436 and standard deductions of $16,100 single / $32,200 married. Federal income tax deduction allowed.
Who qualifies for the Foreign Tax Credit in Missouri?
US taxpayers who paid or accrued foreign income taxes. The federal rules are the same in every state; the requirements are: Tax must be imposed on you; Tax must be a legal and actual foreign tax liability; Tax must be an income tax or tax in lieu of income tax. Missouri filers should confirm on the MO return whether the state follows the federal treatment.
Which forms do I file to claim the Foreign Tax Credit?
Federal: Form 1116, Form 1040. Missouri: check the Missouri Department of Revenue instructions for the matching state schedule. Common mistakes: Not choosing between credit and deduction strategically; Exceeding the foreign tax credit limitation; Double-counting with foreign earned income exclusion.
Foreign Tax Credit in other states
Sources
Reviewed 2026-09-17. Estimates are educational planning figures computed from the IRS 2026 inflation adjustments and LevyIO's state bracket dataset; they are not tax advice.