The Midwestern region of the United States varies broadly in terms of income, cost of living and property taxes. With nine states in the region, property owners of Missouri will find that their property tax levels are right near the median of their neighboring states.

Estimating Your Missouri Property Taxes

Property owners in Missouri receive annual tax bills for their owned property and taxes are due by Dec. 31.

Your tax bill begins with the value of your property, which is determined by a government tax assessor. In Missouri, an assessment ratio is then multiplied by your assessed value to determine the taxable assessment value. Assessment ratios can differ by tax districts and generally are lower than most comparable states. Missouri’s average assessment ratio is 19%, which means you only pay taxes on 19% of the full value of your property. Your tax bill is determined by multiplying your taxable value by a designated tax rate based on your tax district. Tax rates are expressed in $100 increments with a tax rate of 5, representing a tax of 5/100 times the taxable value.

Average Property Taxes

Missouri’s average property taxes rate is 1.02%, which ranks 26th among all 50 states. Property owners in St. Charles County can expect to pay the highest property tax rates, while those in Shannon County pay the lowest property taxes as a percentage of their home values. Highly populated cities in St. Charles County include St. Charles and St. Paul, while the most populated cities in Shannon County include Winona and Birch Tree.

For Missouri, the average effective property tax rate for the state is 0.99% with a median home value average of $103,177. The average median annual property tax payment is $864, and Platte County reportedly pays the highest median annual property tax at $2,490.

How State Taxes Compare to Neighboring States

Centrally located in the middle of the United States, Missouri’s property tax rate varies broadly from its neighboring states of Illinois, Kentucky, Tennessee, Arkansas, Oklahoma, Kansas, Nebraska and Iowa. State rankings by average property tax in the region range from 2 to 42. Illinois has the highest average property tax in the region, ranking second with an average effective property tax rate of 2.32%. Nebraska ranks seventh with an effective property tax rate of 1.84 percent. Iowa ranks 14th with an effective tax rate of 1.49%, and Kansas ranks 15th with an effective property tax rate of 1.39%. Missouri ranks 26th with an effective property tax rate of 1.02%. Oklahoma ranks 29th with an effective property tax rate of 0.86%, and Kentucky ranks 32nd with an effective property tax rate of 0.85%. Tennessee ranks 38th with an effective property tax rate of 0.75%, and Arkansas ranks 42nd with an effective property tax rate of 0.62%.

How Missouri Compares to the National Average

Missouri’s average property tax is just at the median of national property tax rate rankings by state. According to WalletHub’s 2016 survey report on national property taxes, Missouri is just below the average national effective property tax rate at 1% versus the national average of 1.13%. States reporting the highest average effective property tax rates include New Jersey at 2.29% and Illinois at 2.25%. States reporting the lowest average effective property tax rates include Hawaii at 0.28% and Alabama at 0.43%.

Property owners in Missouri can expect to pay property tax rates right near the median of levels for their region and nationally. With property tax rates varying widely in the Midwestern region and throughout the state, property owners should be aware of their annual property tax obligations.

Ohio Property Tax Guide

Related Articles
  1. Taxes

    Your Property Tax Assessment: What Does It Mean?

    Understanding your property taxes can protect you from financial shocks.
  2. Investing

    Your Property Tax Assessment: What Does It Mean?

    Property taxes are a primary source of revenue for governments, and they’re a big expense for homeowners. They can vary widely depending on where you live.
  3. Taxes

    4 Little-Known Ways to Reduce Your Property Taxes

    Here are little-known ways you can reduce your property tax liability.
  4. Taxes

    Getting U.S. Tax Deductions On Foreign Real Estate

    If your home or second home is not in the United States, you can still get U.S. tax deductions. How many and what kind depends on whether you also rent it.
  5. Taxes

    10 Best States for Property Taxes in 2016

    Whether you are thinking of moving or just curious to see whether your state is in the top 10, these rankings are eye-opening.
  6. Taxes

    Overall Tax Burden By State

    Start here, to research states with the heaviest tax burdens. The charts below compare them by income tax, sales tax and property tax.
  7. Investing

    10 Best States to Own a Big House

    On top of the low property taxes and average housing costs, these states all tend to have great natural beauty and land worth building on.
  8. Taxes

    How To Prevent A Tax Hit When Selling A Rental Property

    Rental property ownership has its benefits but when selling you can face a big tax hit. Thankfully there are ways to reduce your capital gains exposure.
  9. Investing

    How Property Rights Affect Economies

    Property rights are laws governments create that enable investors to control, benefit from, and transfer property.
  10. Personal Finance

    Which States Are Community Property States?

    There are nine community property states. Here's what 'community property' means when a couple divorces.
Frequently Asked Questions
  1. What Are the Components of a Risk Premium?

    Learn the five main risks that comprise the risk premium and how they affect investors.
  2. What Is an Odd-Lot Buyback?

    Odd-lot buybacks involve lots of less than 100 shares. Learn how companies get these shares back.
  3. How is a company's share price determined?

    Understand the concept behind the Gordon growth model and what it is used to measure. Learn how a company's share price is ...
  4. What is the difference between real estate and real property?

    Understand how real estate is legally different from real property and the implications of that difference for each property ...
Trading Center