Military Retirement in Missouri: Complete 2026 Tax Guide
100% tax-free retirement + ultra-affordable Midwest living
🎯 Quick Summary: Missouri Military Retirement Taxes (2026)
- ✓ Military retirement pay: 100% EXEMPT from state income tax
- ✓ VA disability payments: Tax-free (federal and state)
- ✓ Survivor Benefit Plan (SBP): 100% exempt
- ✓ Property tax: Low rates + exemption for 100% disabled vets
- ✓ Cost of living: 11% below national average
Why Missouri Is a Hidden Gem for Military Retirees
Missouri has quietly become one of the best states for military retirees. With 100% exemption on military retirement pay (achieved in 2024), affordable cost of living, low property taxes, and a central location, Missouri offers exceptional value for veterans.
The state is home to Fort Leonard Wood—the Army's premier training center for Engineers, Military Police, and Chemical specialists—plus Whiteman Air Force Base, home of the legendary B-2 Spirit stealth bomber. These installations create strong military communities and career opportunities for retiring service members.
2026 Missouri Military Retirement Tax Breakdown
State Income Tax on Military Retirement Pay
🎉 100% EXEMPT!
Missouri now exempts 100% of military retirement pay from state income tax. This includes:
- All military pensions (regardless of rank or years served)
- Survivor Benefit Plan (SBP) payments
- Reserve/Guard retirement pay
- No age restrictions or income limits
VA Disability Compensation
✓ Completely Tax-Free
VA disability payments are tax-exempt at both the federal and Missouri state levels. This is protected by federal law.
Missouri State Income Tax Rates (2026)
While military retirement is exempt, other income is taxed at these rates:
| Taxable Income | Tax Rate |
|---|---|
| $0 - $1,207 | 0% |
| $1,208 - $2,414 | 2.0% |
| $2,415 - $3,621 | 2.5% |
| $3,622 - $4,828 | 3.0% |
| $4,829 - $6,035 | 3.5% |
| $6,036 - $7,242 | 4.0% |
| $7,243 - $8,449 | 4.5% |
| Over $8,449 | 4.8% |
Missouri has been reducing its top rate and is working toward a 4.5% flat tax in future years.
Other Tax Benefits for Missouri Veterans (2026)
| Benefit | Details |
|---|---|
| Property Tax Exemption |
|
| Sales Tax | 4.225% state rate + local taxes (total 7-10%). Groceries taxed at reduced rate. No special veteran exemption. |
| Vehicle Registration | Disabled veteran plates available. Some fee exemptions for 100% disabled. |
| Hunting/Fishing | Free lifetime hunting/fishing permits for 60%+ disabled veterans. |
Real Example: How Much You'll Save in Missouri (2026)
Example: E-7 Retired After 20 Years
- • Military retirement pay: $33,600/year
- • VA disability (50%): $13,800/year
- • Part-time job: $15,000/year
- • Total income: $62,400
Missouri Tax
Military retirement: $0 (exempt)
VA disability: $0 (exempt)
Part-time job: ~$550
State tax: ~$550
California Comparison
Would tax more of this income
State tax: ~$2,200+
Annual Missouri Savings: $1,650+
🎓 Education Benefits for Veterans & Families in Missouri
Missouri Returning Heroes' Education Act
- Free tuition at Missouri public colleges for combat veterans
- Must have served in combat zone after 9/11
- Covers undergraduate tuition (use GI Bill for housing)
Veteran Survivors Grant
- Free tuition for children and spouses of veterans who died in service
- Also covers dependents of 100% disabled veterans
- Available at all Missouri public universities
Missouri National Guard
- Substantial tuition assistance for Guard members
- Good option for retirees seeking continued service
A+ Scholarship Program
- Free community college for Missouri high school grads
- Applies to dependents of veterans who attended Missouri high schools
Cost of Living in Missouri for Military Retirees (2026)
Missouri offers a cost of living 11% below the national average, making your tax-free retirement dollars go further:
| Category | vs. National Average | Notes |
|---|---|---|
| Housing | -25% cheaper | Median home: $230,000. Even lower near Fort Leonard Wood. |
| Groceries | -5% cheaper | Commissary access at Fort Leonard Wood and Whiteman. |
| Healthcare | -8% cheaper | Multiple VA medical centers. Good TRICARE network. |
| Property Tax | 0.93% average | Much lower than Illinois (2.2%). On $200K home = ~$1,860/year. |
| Utilities | -10% cheaper | Low electricity rates. Natural gas widely available. |
Major Military Installations in Missouri
🏰 Fort Leonard Wood
- Location: South-central Missouri (Ozarks)
- U.S. Army Maneuver Support Center
- Engineer, Military Police, Chemical schools
- Trains 80,000+ soldiers annually
- Large civilian workforce
- General Leonard Wood Army Community Hospital
- Commissary, PX, recreation facilities
✈️ Whiteman Air Force Base
- Location: Knob Noster (central Missouri)
- Home of B-2 Spirit stealth bomber
- 509th Bomb Wing
- 442nd Fighter Wing (A-10 Reserve)
- Highly skilled workforce
- Small base with tight-knit community
🛡️ Missouri National Guard
- Ike Skelton Training Site
- Jefferson Barracks (St. Louis)
- Multiple armories statewide
- Strong tradition of service
📍 Nearby: Scott AFB (Illinois)
- Just across river from St. Louis
- Many retirees live in Missouri for lower taxes
- Access to commissary, exchange, medical
- Best of both worlds: MO taxes, IL base access
Best Cities for Military Retirees in Missouri
🥇 St. Louis Metro (Missouri side)
Best overall for retirees wanting urban amenities with Missouri tax benefits. Close to Scott AFB (across river in Illinois). Affordable suburbs like O'Fallon, St. Charles, and St. Peters offer homes $250K-$350K. Jefferson Barracks National Cemetery and strong VA presence.
🥈 Waynesville / St. Robert (Fort Leonard Wood)
Best for those wanting base access. Very affordable housing ($150K-$250K). Strong military community, but rural Ozarks location. Good for outdoor enthusiasts. Easy access to commissary, PX, hospital.
🥉 Kansas City Metro
Larger metro area with affordable suburbs. No major base, but VA medical center. Great for retirees who don't need base access. Vibrant city with BBQ, sports, and culture. Lee's Summit, Blue Springs offer good value.
Warrensburg / Knob Noster (Whiteman AFB)
Small town living near Whiteman AFB. Ultra-affordable homes ($120K-$200K). College town (UCM) adds some amenities. 1 hour from Kansas City. Perfect for those who want quiet, rural life with base access.
Springfield
Third-largest city in Missouri. No military base, but VA clinic and affordable living. Gateway to Ozarks outdoor recreation. Bass Pro Shops headquarters. Good for nature-loving retirees.
VA Healthcare in Missouri
🏥 VA Medical Facilities in Missouri
- • Kansas City VA Medical Center: Full-service hospital, specialty care
- • John Cochran VA Medical Center: St. Louis - Major facility
- • Jefferson Barracks VA Medical Center: St. Louis - Long-term care
- • Harry S. Truman Memorial VA Hospital: Columbia
- • General Leonard Wood Army Community Hospital: Fort Leonard Wood (TRICARE)
- • 10+ Community-Based Outpatient Clinics statewide
TRICARE: Good network coverage. Fort Leonard Wood hospital serves TRICARE Prime. Scott AFB (Illinois) accessible from St. Louis area.
Pros and Cons of Retiring in Missouri
✅ Pros
- ✓ 100% military retirement exemption
- ✓ Cost of living 11% below average
- ✓ Very affordable housing
- ✓ Low property taxes (0.93%)
- ✓ Fort Leonard Wood community
- ✓ Easy access to Scott AFB
- ✓ Four seasons, beautiful Ozarks
- ✓ Central location - drive anywhere
- ✓ Strong veteran support services
- ✓ Free hunting/fishing for disabled vets
❌ Cons
- ✗ Hot, humid summers
- ✗ Tornado risk (spring/summer)
- ✗ Rural areas can feel isolated
- ✗ Limited major airports
- ✗ Sales tax can be high (7-10%)
- ✗ Some areas lack amenities
- ✗ Cold winters with ice storms
Frequently Asked Questions
Should I live in Missouri or Illinois near St. Louis?
Missouri is generally better for military retirees. Both states exempt military retirement, but Missouri has much lower property taxes (0.93% vs 2.2%), lower overall taxes, and lower cost of living. You can live in Missouri and still access Scott AFB easily across the river.
How rural is Fort Leonard Wood?
Fort Leonard Wood is in the Ozarks, about 2 hours from St. Louis or Springfield. The area (Waynesville/St. Robert) has basic amenities, but for major shopping, healthcare specialists, or airports, you'll need to drive 1.5-2 hours. Great for outdoor enthusiasts, less ideal for those wanting urban life.
Is Missouri tornado-prone?
Yes, Missouri is in "Tornado Alley" and sees 30-50 tornadoes annually, mainly March-June. Modern warning systems give good notice. If concerned, consider areas in the Ozark hills (like near Fort Leonard Wood) which see fewer tornadoes than the flat plains areas.
What's the job market like for military retirees?
Kansas City and St. Louis have diverse job markets. Fort Leonard Wood has many contractor positions for those with military backgrounds (especially MP, Engineer, Chemical). Whiteman AFB area is more limited. Defense contractors include Boeing (St. Louis), SAIC, and many smaller firms.
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