Missouri Passes Tax Bill Exempting Crypto and Stock Gains from State Income Tax

Missouri lawmakers have approved a significant tax overhaul that eliminates state income tax on capital gains, including cryptocurrency and stock profits. The bill, now awaiting Governor Mike Kehoe’s signature, passed along party lines with unanimous Republican support and 10 Democrats voting "present."

The legislation carries substantial fiscal implications, retroactively applying to 2025 gains and projected to reduce state revenues by $430 million this fiscal year, followed by annual losses of $340 million. Critics highlight Missouri’s current revenue shortfall, already trailing projections by over 2%.

While primarily benefiting investors, the bill includes provisions for low-income seniors and disabled residents through expanded property tax credits. The MOVE signals growing legislative recognition of digital assets as mainstream investment vehicles, though budget concerns may temper similar initiatives elsewhere.