All-items parity
90.8
US = 100.0
Missouri (MO) | All-items parity 90.8
Missouri Cost of Living 2026
Missouri reads 90.8 on the BEA all-items price parity for 2024, firmly in the cheapest third of states, with housing rents at 69.9 and a median home of $254,400. Its distinctive offer is urban: Kansas City and St. Louis are two of the least expensive big metros in the country, delivering major-league sports, airports and professional job markets at small-town carrying costs. The income tax tops out at 4.7% and has been stepped down repeatedly, while the quirks to budget for are the 1% earnings taxes inside the two big cities and locally stacked sales taxes.
Median home $254,400Income tax top 4.7% and fallingTwo bargain big metros
Median Home
$254,400
2BR rent $1,057/mo
Median Income
$71,589
Household, Census ACS
Category breakdown
The four BEA price parities vs the nation
| Category | MO index | National avg | Difference |
|---|---|---|---|
| All items | 90.8 | 100.0 | -9.2% |
| Services: housing rents | 69.9 | 100.6 | -30.5% |
| Goods | 96.3 | 99.6 | -3.3% |
| Services: utilities | 79.4 | 98.4 | -19.3% |
| Services: other | 95.2 | 100.1 | -4.9% |
U.S. Bureau of Economic Analysis publishes these four component parities and no others. There is no federal grocery, healthcare or transportation price parity, so this table shows none. Food at home sits inside Goods; medical and transport services sit inside Services: other.
Sources: BEA Regional Price Parities by State (table SARPP), 2024 reference year, U.S. Bureau of Economic Analysis. Census ACS 2024 1-year (median income, home value), Missouri Department of Revenue (income and sales tax), Tax Foundation (effective property tax), EIA (electricity rates), KFF (uninsured rate).
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Pros / offsets
What works in Missouri.
Big-metro life at the national discount. Kansas City and St. Louis routinely rank among the cheapest major US metros: solid family homes in good suburbs commonly sell between $200,000 and $320,000, and the $1,057 median two-bedroom rent is roughly half of California's statewide median.
An income tax heading down. Missouri's top rate has been cut in steps to 4.7%, with statutory triggers pointing lower, and the first slice of income is tax-free. For most households the effective state rate lands in the low single digits.
Social Security untaxed and retiree-friendly recently improved. Missouri exempts Social Security benefits from state income tax and in recent years removed its income caps on the exemption, plus offers a public-pension exemption. Combined with cheap housing, the retirement math is quietly strong.
Central costs stay low across the board. Electricity at 13.12 cents per kWh, groceries at $380 a month and a 0.88% property tax keep every major line item at or below national norms; there is no single gotcha category.
Cons / drivers
Where Missouri costs more.
The city earnings taxes. Both Kansas City and St. Louis levy a 1% earnings tax on everyone who lives or works inside the city limits. It is the hidden bracket in any Missouri metro budget, and it shapes where offices and commuters locate; suburban residents working remotely for suburban employers escape it.
Sales taxes stack hard locally. The state rate is a modest 4.225%, but counties, cities and special districts pile on: combined rates in parts of Kansas City and St. Louis reach 9 to 11%. Missouri also still taxes groceries at a reduced state rate plus local add-ons, which most neighbors do not.
Wages match the prices. The $71,589 median household income sits below the national median; Missouri is cheap partly because pay is modest. Transplants bringing remote coastal salaries capture the full arbitrage, local earners less so.
Weather and insurance volatility. Sitting in hail-and-tornado country, Missouri homeowners face recurring roof claims; home-insurance premiums have climbed faster than the national pace in recent years, a line worth quoting locally before buying.
Tax + benefit signals
Missouri tax and access overview
State income tax
2-4.7%
Graduated or flat
Property tax effective
0.88%
Of assessed value, annual
Sales tax (state)
4.23%
Local can add 1-4% more
Uninsured rate
8.1%
Medicaid: expanded
Your take-home pay in Missouri
Federal, Missouri and any local income tax on your salary, per paycheck.
The mortgage on a $254,400 home
Monthly payment at today’s rates with Missouri property tax (0.88%) and average home insurance.
Metro variation
State averages mask city variation.
Missouri averages 90.8 on the BEA all-items parity, with its two big metros defining the range:
Kansas City: The faster-growing side of the state. Northland and Johnson County-adjacent suburbs carry the premium; the city itself offers renovated housing stock at prices that startle coastal visitors. Remember the 1% earnings tax applies inside city limits, on both sides of the state line debate.
St. Louis metro: City neighborhoods range widely; the central corridor and inner suburbs (Clayton, Kirkwood, Webster Groves) are the premium pocket, while vast tracts of solid housing in St. Louis County sell under $250,000. The 1% earnings tax applies in the city only, not the county.
Springfield, Columbia and the rest: Springfield is one of America’s cheapest mid-size metros; Columbia runs slightly hotter on university demand; the Ozarks and Bootheel price like the rural South.
Few states let a professional couple choose between two major metros this cheap; that choice is Missouri’s core pitch.
Frequently Asked
Missouri cost of living, answered
What is the Kansas City / St. Louis earnings tax?
Both cities levy a 1% flat earnings tax on wages and business profits of anyone living or working within city limits, a structure few other US cities outside the Northeast use. Suburban residents who also work in the suburbs avoid it entirely, which is a real factor in metro location choices. Voters in both cities have repeatedly reauthorized the tax, so treat it as permanent when budgeting.
Does Missouri tax Social Security or retirement income?
Social Security benefits are exempt from Missouri income tax, and the state removed the income limits on that exemption in recent years, so the exemption now applies regardless of income. Public pensions enjoy a further exemption; private pensions and 401(k)/IRA withdrawals are taxed as ordinary income at Missouri's low rates (top 4.7% and trending down). With a $254,400 median home, the state is a sleeper on retirement affordability.
Why do Missouri sales taxes vary so much by location?
The state rate is only 4.225%, but Missouri allows counties, municipalities and special taxing districts (transportation, community improvement) to stack their own levies. Combined rates run from about 6% in rural areas to 9 to 11% in parts of the big metros, and a single shopping trip can cross several district boundaries. Missouri also taxes groceries at a reduced state rate of 1.225% plus local taxes, unusual among its neighbors.
Is Kansas City cheaper on the Missouri or Kansas side?
They are close, and the taxes decide it household by household. Missouri-side pros: lower property tax (0.88% vs Kansas's roughly 1.3%) and a falling income tax. Kansas-side pros: no city earnings tax in Johnson County and generally stronger school funding. Many households effectively choose by school district first and let the tax math follow; run both sides with your own numbers on the /calculator.
How cheap are St. Louis and Kansas City really?
Among top-40 US metros they are consistently in the bottom five for housing costs. Median metro homes sit in the $230,000 to $280,000 range, decent inner-suburb family homes under $250,000 are common, and the statewide median two-bedroom gross rent is $1,057 (Census ACS 2024), under half of California's $2,179. Professional salaries, while below coastal pay, are much closer to national norms than the housing is, which is the entire arbitrage.
How do Missouri groceries and utilities compare?
BEA publishes no grocery parity; food sits inside the goods parity, 96.3 for Missouri against a national 99.6. Note Missouri is one of the few states still taxing groceries (reduced 1.225% state rate plus local add-ons); household spending averages $380 a month. Utilities are cheap: electricity at 13.12 cents per kWh and an average bill of $128, with a moderate heating season by Midwest standards.