Missouri voters will decide in August whether to approve a constitutional amendment that would slowly end the state’s individual income tax. Governor Mike Kehoe put the measure, known as Amendment 5, on the Aug. 4, 2026, primary ballot by signing a proclamation on Friday.

Amendment 5 is a major part of Kehoe’s agenda. If voters approve it, Missouri would begin a five-year process to phase out and then fully end the personal income tax. Supporters say the plan would be historic because state lawmakers would be asking voters to get rid of the modern income tax system entirely.

The income tax would not end all at once. It would be reduced over five years, based on growth in state revenue, until it is gone. After that, the amendment would block future state individual income taxes. Because income taxes now provide nearly two-thirds of Missouri’s general revenue, the plan would let lawmakers expand sales and use taxes to more goods and services to help replace that money. That is why some lawmakers from both parties call it a tax shift instead of a simple tax cut.

The amendment includes several rules meant to reduce some of the effects of the change. It would require cuts to personal property taxes and some other local taxes if local sales tax revenue goes up. It also says the state cannot reduce funding for public schools because of the tax change. In addition, it would ban new sales taxes on services or transactions that were not already taxed on Jan. 1, 2015.

Supporters of Amendment 5 say ending the income tax would help Missouri compete with states such as Texas and Tennessee, which do not have a personal income tax. Kehoe says a tax system that rewards work and investment will help attract businesses and residents. The proposal also follows a law he signed in July 2025 that ended Missouri’s tax on individual capital gains.

Opponents, including tax policy experts and progressive groups, say the plan would hurt low- and middle-income families the most. They argue that moving more of the tax burden to sales taxes would put more pressure on people who spend a bigger share of their income on everyday needs.

Amendment 5 is one of four constitutional amendments on the Aug. 4 ballot. Voters will also decide on Amendment 1, which would renew a 0.1% sales tax for 10 years to support soil and water conservation, state parks and historic sites. Amendment 2 would require all Missouri charter counties to elect county assessors directly and follow state training rules. Amendment 4 would make it harder for citizen-led constitutional amendments to pass by requiring a majority vote in every congressional district, instead of a simple statewide majority.

KPGZ News – Brian Watts contributed to this story.

On the anniversary of his inauguration as Missouri’s 58th Governor, Mike Kehoe addressed the Missouri General Assembly with the 2026 State of the State speech, outlining his legislative agenda and budget recommendations for Fiscal Year 2027. Kehoe’s address focused on fiscal responsibility, as he proposed a conservative budget aimed at aligning ongoing state spending with reliable revenue sources, moving away from the extraordinary federal funds and increased general revenue that characterized the past few years.

The governor emphasized a return to sustainable, pre-pandemic financial practices, stating, “Today, we delivered a budget recommendation that focuses on the core functions of government and how we can best serve Missourians without overpromising and overspending. Our recommendation proves that state government can live within its means, and our economy can grow and deliver results for taxpayers all at the same time.”

Since Fiscal Year 2022, Missouri has added over 3,400 new budget items, with nearly $13 billion in new general revenue spending. To address a projected future imbalance of more than $2 billion, Kehoe’s plan proposes over $600 million in reductions to the general revenue core operating budget. These cuts, he said, would maintain fiscal discipline while ensuring continued support for mandatory and high-priority obligations such as Medicaid matching, child care subsidies, and disaster relief. Notably, the plan does not reduce core funding for higher education or the K-12 foundation formula.

Governor Kehoe also used his address to advocate for the eventual elimination of Missouri’s individual income tax, calling for a responsible and sustainable approach. He urged lawmakers to pass a joint resolution placing the phased elimination of the income tax before voters on the ballot this year, allowing legislative action in the next session if approved.

Kehoe outlined potential new revenue sources from untaxed modern services and described safeguards in his plan, including triggered reductions to the income tax rate, to protect the state against economic downturns. He assured Missourians that he would not support extending sales taxes to agriculture, healthcare, or real estate, emphasizing the need for a tax code fit for the state’s future.

Looking back on his first year in office, Kehoe highlighted progress in his administration’s four key areas: public safety, economic development, agriculture, and education. He detailed his ongoing commitment to these priorities with both legislative proposals and budget recommendations presented to the General Assembly.

In conjunction with his address, Governor Kehoe signed four executive orders. Executive Order 26-01 creates a statewide school accountability A-F grade card. Executive Order 26-02 affirms the administration’s commitment to safe and effective use of artificial intelligence in state government. Executive Order 26-03 establishes the Missouri Government Responsibility, Efficiency, Accountability, and Transformation initiative, or Missouri GREAT, to improve government efficiency. Executive Order 26-04 forms the Advanced Nuclear Energy Task Force to promote nuclear energy deployment within the state.

KPGZ News – Brian Watts contributed to this story.