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Health Coverage Tax Credit (HCTC) in St. Louis, MO 2026

Calculate your health coverage tax credit (hctc) tax savings in St. Louis, Missouri. With Missouri's 4.8% state tax rate, your combined savings are higher.

Missouri Tax Context

State Income Tax
4.8%
Local Income Tax
1%
Property Tax Rate
0.96%
Tax Burden
Moderate

St. Louis earnings tax of 1%; independent city; high combined sales tax

$5,000
Est. Total Savings
No Limit
Max Deduction
Tax Credit
Deduction Type
27.8%
Combined Tax Rate

Health Coverage Tax Credit (HCTC) Savings Calculator for St. Louis

$
$

Federal Savings

$5,000

22% bracket

Missouri State

$0

4.8% rate

Local Tax

$0

1% rate

Total Savings

$5,000

27.8% combined

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

Savings by Tax Bracket in St. Louis

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 + 1% local tax on top of federal savings.

Eligibility Requirements

Trade-displaced workers receiving TAA benefits and PBGC pension recipients

  • 1Must receive Trade Adjustment Assistance
  • 2Or be a PBGC pension recipient aged 55-64
  • 3Covers 72.5% of qualified health insurance premiums

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

  • !Not filing monthly with the IRS for advance payments
  • !Missing open enrollment periods
  • !Not keeping proof of qualifying coverage
  • !Forgetting to claim the deduction on your Missouri state return (missing 4.8% additional savings)
  • !Not checking if St. Louis's local income tax allows this deduction (1% potential additional savings)

Required Tax Forms

Form 8885Form 1040

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

Other Tax Deductions in St. Louis, MO

Medical & Dental Expenses

Medical

~$3,791
est. savings

Self-Employed Health Insurance

Medical

~$6,318
est. savings

HSA Contribution Deduction

Medical

~$2,275
est. savings

Long-Term Care Insurance

Medical

~$2,527
est. savings

Medical Travel Expenses

Medical

~$1,011
est. savings

Flexible Spending Account (FSA)

Medical

~$1,137
est. savings

Medical Equipment & Devices

Medical

~$1,895
est. savings

Therapy & Counseling

Medical

~$2,527
est. savings

Health Coverage Tax Credit (HCTC) in Other Missouri Cities

Kansas City, MO

4.8% state + 1% local

~$3,200
-1,800 vs St. Louis

Springfield, MO

4.8% state tax

~$3,200
-1,800 vs St. Louis

Columbia, MO

4.8% state tax

~$3,200
-1,800 vs St. Louis

Independence, MO

4.8% state tax

~$3,200
-1,800 vs St. Louis

Lee's Summit, MO

4.8% state tax

~$3,200
-1,800 vs St. Louis

Lee's Summit, MO

4.95% state + 1.35% local

~$3,200
-1,800 vs St. Louis

OFallon, MO

4.95% state + 1.24% local

~$3,200
-1,800 vs St. Louis

St. Joseph, MO

4.95% state + 1.35% local

~$3,200
-1,800 vs St. Louis

Calculate Your Full Tax Savings in St. Louis

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

Income Tax CalculatorTaxes in St. LouisFull Health Coverage Tax Credit (HCTC) Guide

Frequently Asked Questions

How much can I save with the Health Coverage Tax Credit (HCTC) in St. Louis, MO?

In St. Louis, Missouri, the health coverage tax credit (hctc) can save you an estimated $5,000 per year. This includes $5,000 in federal tax savings and $0 in Missouri state tax savings plus $0 in local tax savings. The national average savings is $3,200/year.

What is the Missouri state income tax rate for St. Louis residents?

Missouri has a 4.8% state income tax rate. St. Louis residents also pay a 1% local income tax, bringing the combined state/local rate to 5.8%. St. Louis earnings tax of 1%; independent city; high combined sales tax

Who qualifies for the Health Coverage Tax Credit (HCTC) in St. Louis?

Trade-displaced workers receiving TAA benefits and PBGC pension recipients. The eligibility requirements are the same whether you live in St. Louis or elsewhere in the U.S., as this is a federal tax credit. However, your savings amount will vary based on Missouri's 4.8% state tax rate.

What tax forms do I need to claim the Health Coverage Tax Credit (HCTC) in Missouri?

To claim the health coverage tax credit (hctc), you need to file Form 8885 and Form 1040 with your federal return. Missouri residents should also check if the state allows this deduction on their state return, which could provide an additional 4.8% savings. Filing status affects your deduction limits and tax bracket.

Is the Health Coverage Tax Credit (HCTC) better in St. Louis than in states without income tax?

Yes, St. Louis residents benefit more because Missouri's 4.8% state income tax 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 27.8% means more savings per dollar deducted.

Related Calculators

Medical & Dental Expenses in St. Louis

Avg savings: $3,000/year

Self-Employed Health Insurance in St. Louis

Avg savings: $5,000/year

HSA Contribution Deduction in St. Louis

Avg savings: $1,800/year

Long-Term Care Insurance in St. Louis

Avg savings: $2,000/year

Medical Travel Expenses in St. Louis

Avg savings: $800/year

Flexible Spending Account (FSA) in St. Louis

Avg savings: $900/year