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Missouri · Bookkeeping services

Missouri bookkeeping: two city earnings taxes, and one tax the employer pays itself.

Missouri’s two largest cities tax earnings: Kansas City and the City of St. Louis each levy 1%, and St. Louis adds a 0.5% payroll expense tax the employer pays. Remote and hybrid work makes both harder, because for non-residents the tax follows where the work was done. We keep it straight in your own QuickBooks file, remotely, on a written fixed-fee scope.

§Missouri, in one paragraph

Missouri bookkeeping: the state sales tax is 4.225%, with local rates on top. Kansas City and the City of St. Louis each levy a 1% earnings tax, withheld from residents and from non-residents who work in the city; for a non-resident, the taxable part is pay for work physically performed inside the city. The City of St. Louis also levies a 0.5% payroll expense tax paid by the employer, filed with the earnings tax quarterly on Forms W-10/P-10. The City of St. Louis sits inside no county, so a St. Louis County address is not in the city. TechBrot keeps the books in your own QuickBooks file; your tax professional files.

TechBrot Inc. · independent bookkeeping and advisory firm led by a Certified QuickBooks ProAdvisor — not a CPA firm and not affiliated with Intuit Inc.

§Working in Missouri

What a Missouri business actually tracks.

A Kansas City, Missouri agency with staff who live in Kansas withholds the city’s 1% earnings tax only on the pay for days they worked in the city; the days they worked from home in Kansas are not the city’s. That is a record the books have to keep, pay period by pay period.

A downtown St. Louis firm has a second layer: the 0.5% payroll expense tax, paid by the firm itself, not withheld from anyone, and easy to miss because no paycheck shows it. Work done across the city line in St. Louis County carries no payroll expense tax, and no earnings tax for a non-resident.

§Missouri, verified

Five Missouri facts your books have to reflect.

As verified from the Department of Revenue’s, Kansas City’s and the City of St. Louis’s pages for our Missouri page.

Sales tax: 4.225% state

The state rate, carried to three decimals, with local rates added on top.

Kansas City earnings tax: 1%

Withheld from residents and from non-residents who work in the city.

St. Louis earnings tax: 1%

The City of St. Louis levies its own 1% earnings tax on the same basis.

St. Louis payroll expense tax: 0.5%

Paid by the employer, not withheld, and filed with the earnings tax quarterly on Forms W-10/P-10.

Work location decides it

For non-residents, the taxable part is the pay for work physically performed inside the city; the City of St. Louis sits inside no county.

Sources, read September 2026, for our Missouri page:Missouri DOR (cited on our Missouri page) · Missouri DOR: withholding tax (cited on our Missouri page) · Kansas City: earnings tax (cited on our Missouri page) · City of St. Louis: payroll tax information (cited on our Missouri page).

§How we work

How a Missouri engagement runs.

STEP 1

Discovery call

Free, 30 minutes: where your people live, where they work, and how remote days are recorded.

STEP 2

City taxes mapped

Earnings tax for residents and for in-city work by non-residents, and the St. Louis payroll expense tax as an employer cost.

STEP 3

Monthly close

Every account reconciled, each city liability tied to what was filed, the sales-tax liability tied to the return.

STEP 4

Work-location records

In-city and out-of-city days kept with payroll, so a non-resident’s taxable share can be shown.

STEP 5

Year-end handoff

The books and schedules your CPA needs, with the city taxes already reconciled.

§Checklist

A Missouri business’s books checklist.

  • Kansas City or St. Louis earnings tax withheld from residents, and from non-residents for in-city work.
  • In-city and remote days recorded for non-resident employees.
  • The St. Louis payroll expense tax accrued as an employer expense, not withheld.
  • A St. Louis County address never treated as the City of St. Louis.
  • The 4.225% state rate plus the local rate on every sales-tax item.
§Pricing

What it costs, and where to go next.

Monthly bookkeeping is published at $400–$2,500+/mo and payroll management at $150–$800+/mo, each a fixed fee against a written scope; the national service is monthly bookkeeping. A business on both sides of the Kansas line can see multi-state bookkeeping.

Remote, with no Missouri office; the work happens in your own QuickBooks file, reviewed by TechBrot’s founder, a Certified QuickBooks ProAdvisor. Your tax professional files.

§Questions

Missouri bookkeeping services questions.

Do I withhold the earnings tax for a remote employee?
For a non-resident, only on pay for work physically performed in the city, so remote days matter. Your payroll provider and the city confirm individual cases.
Is the payroll expense tax withheld from pay?
No. The employer pays it; it belongs in the books as an employer expense and liability.
Is St. Louis County part of the City of St. Louis?
No. The City of St. Louis sits inside no county. Work in St. Louis County carries no city payroll expense tax, and no city earnings tax for a non-resident.
How much does Missouri bookkeeping cost?
Monthly bookkeeping is published at $400–$2,500+/mo, fixed fee against a written scope.
Is TechBrot a CPA firm?
No. TechBrot is an independent bookkeeping and advisory firm, not a CPA firm, and does not perform audits, reviews, compilations, or income-tax filing.

Updated 2026-09-28

Missouri business?

Get the city taxes right, pay period by pay period.

Book a free 30-minute discovery call. We map where your people work, and you get a written fixed-fee scope within 3 business days. Remote; no Missouri office.

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