Partly taxed
How Missouri taxes retirement income
Missouri does not tax Social Security for people 62 and older or those on Social Security disability. Public pensions from any federal, state or local government, including PSRS teacher pensions, MOSERS and pensions from other states, get a large exemption: up to the maximum Social Security benefit ($47,633 for 2025) per person, reduced by any taxable Social Security you receive.
Private pensions, 401(k) plans and IRAs get a smaller break. Each person can exempt up to $6,000, but only if household income is under $25,000 for single filers or $32,000 for joint filers, and the exemption drops dollar for dollar above those lines.
Most Missouri teachers do not have Social Security from teaching, so the public pension exemption covers most or all of a typical PSRS pension. Income above the exemptions is taxed at rates up to 4.7%.
Questions
Does Missouri tax PSRS teacher pensions?
Mostly not. Up to $47,633 (2025) of public pension per person is exempt, reduced by taxable Social Security.
Are IRA withdrawals taxed?
Yes, except a $6,000 exemption for households under the income limits.
Does Missouri tax Social Security?
No, for anyone 62 or older or receiving disability benefits.