Explain My Paycheck

How does the St. Louis earnings tax work?

State & Local Taxesintermediate3 answers · 6 min readUpdated February 28, 2026

Quick Answer

St. Louis charges a 1% earnings tax on all income earned by people who work or live in the city. If you earn $50,000 and work in St. Louis, you'll pay $500 annually (about $19 per biweekly paycheck) regardless of where you live.

Best Answer

SC

Sarah Chen, Payroll Tax Analyst

Workers whose employers automatically withhold St. Louis earnings tax from their paychecks

Top Answer

How the St. Louis earnings tax works


The St. Louis earnings tax is a 1% tax on all income earned by people who either work in St. Louis city or live in St. Louis city. Unlike many local taxes that are flat fees, this is a percentage of your income — making it one of the most significant local taxes in the United States.


This tax generates approximately $180 million annually for St. Louis, representing about one-third of the city's general revenue. It funds essential city services including police, fire department, street maintenance, and parks.


Who pays the St. Louis earnings tax?


You owe the 1% tax if you:

  • Work in St. Louis city (regardless of where you live)
  • Live in St. Louis city (regardless of where you work)
  • Both work AND live in St. Louis city (you still only pay 1%, not 2%)

  • You don't owe the tax if you:

  • Work and live entirely outside St. Louis city limits
  • Work in St. Louis County suburbs (Clayton, Kirkwood, etc.) but not the city itself
  • Are active military stationed elsewhere

  • Example: $65,000 salary with St. Louis earnings tax


    Here's how the 1% earnings tax affects a typical paycheck:



    Detailed breakdown for $65,000 salary:



    The St. Louis earnings tax represents exactly 1% of your gross income, making it predictable but significant — especially for higher earners.


    How withholding works


    Most employers with workers in St. Louis automatically withhold the 1% earnings tax from paychecks, just like federal and state taxes. The employer remits these withholdings to the St. Louis Collector of Revenue monthly.


    If your employer doesn't withhold (perhaps you're new or work remotely), you're still responsible for paying the tax. You may need to make quarterly estimated payments or pay annually when filing your St. Louis earnings tax return.


    Key scenarios and considerations


    Scenario 1: Live in Clayton, work in downtown St. Louis

    You pay the 1% tax because you work in the city, even though you live in St. Louis County.


    Scenario 2: Live in St. Louis city, work remotely for a company in Kansas City

    You still pay the 1% tax because you're a St. Louis resident, even though your work is performed elsewhere.


    Scenario 3: Live and work in St. Louis city

    You pay 1% (not 2%) because the tax doesn't double up.


    Multiple jobs consideration:

    If you have multiple income sources, all income subject to the tax gets combined. For example, if you earn $40,000 from your main job and $10,000 from a side business (both in St. Louis), you owe 1% on the full $50,000.


    What you should do


    Check your pay stub to ensure the correct amount is being withheld (exactly 1% of gross pay). If you recently moved or changed jobs, notify your payroll department immediately. Use our [paycheck calculator](https://explainmypaycheck.com/tools/paycheck-calculator) to see how the St. Louis earnings tax affects your take-home pay.


    If you work remotely but live in St. Louis, you may need to set up quarterly estimated payments since your employer might not withhold the city tax.


    Key takeaway: St. Louis charges 1% of all income for anyone who works or lives in the city, costing $500 annually on a $50,000 salary — significantly more than most local taxes.

    *Sources: [St. Louis Collector of Revenue](https://www.stlouis-mo.gov/collector/), [IRS Publication 15](https://www.irs.gov/pub/irs-pdf/p15.pdf)*

    Key Takeaway: St. Louis charges 1% of all income for anyone who works or lives in the city, costing $500 annually on a $50,000 salary — significantly more than most local taxes.

    St. Louis earnings tax by income level

    Annual SalaryAnnual Earnings TaxMonthly DeductionBiweekly Deduction
    $40,000$400$33.33$15.38
    $60,000$600$50.00$23.08
    $80,000$800$66.67$30.77
    $100,000$1,000$83.33$38.46
    $150,000$1,500$125.00$57.69

    More Perspectives

    SC

    Sarah Chen, Payroll Tax Analyst

    Workers who recently relocated to or from St. Louis and need to understand their earnings tax obligations

    St. Louis earnings tax for recent movers


    Moving to or from St. Louis creates immediate changes to your tax obligations because the 1% earnings tax applies the moment you establish work or residency in the city.


    Just moved TO St. Louis area:

  • City limits: Start paying 1% immediately if you moved within St. Louis city boundaries
  • County suburbs: No earnings tax if you moved to Clayton, Kirkwood, Chesterfield, etc.
  • Work location matters: Even if you live outside the city, working downtown triggers the 1% tax

  • Just moved AWAY from St. Louis:

  • Out of state: No more earnings tax obligation
  • To St. Louis County: May still owe tax if you kept a job in the city
  • Within Missouri: Could create double-taxation issues with other local taxes

  • Common moving mistakes


    Payroll delays: Many employers take 30-60 days to update withholding after address changes. You might over- or under-pay during the transition.


    Partial year calculations: If you moved mid-year, your annual earnings tax is prorated based on when you established St. Louis work/residency.


    Remote work confusion: If you moved away but kept a St. Louis-based job, whether you owe tax depends on where you physically perform the work.


    What recent movers should do


    Notify both HR and payroll immediately about your move. Don't assume address changes automatically update tax withholding. Consider consulting a local tax professional if you have multiple state/local tax obligations.


    Key takeaway: St. Louis earnings tax starts immediately when you establish city work or residency — update payroll promptly to avoid over/under-payment issues.

    Key Takeaway: St. Louis earnings tax starts immediately when you establish city work or residency — update payroll promptly to avoid over/under-payment issues.

    SC

    Sarah Chen, Payroll Tax Analyst

    Workers earning $75,000+ who face significant dollar impacts from the 1% St. Louis earnings tax

    St. Louis earnings tax impact for high earners


    The St. Louis 1% earnings tax becomes particularly expensive for higher-income workers because there's no cap — unlike Social Security tax, you pay 1% on every dollar you earn.


    Annual tax burden by income level:

  • $75,000 salary: $750 annually ($62.50/month)
  • $100,000 salary: $1,000 annually ($83.33/month)
  • $150,000 salary: $1,500 annually ($125/month)
  • $200,000 salary: $2,000 annually ($166.67/month)

  • For comparison, this often exceeds what many people pay in state income tax to Missouri (5.4% top rate, but with deductions and exemptions).


    Strategic considerations for high earners


    Residence decisions: If you can choose between living in St. Louis city vs. county suburbs, the earnings tax difference could be $1,000+ annually. However, factor in property taxes, which may be higher in some county municipalities.


    Job negotiations: When evaluating job offers, a position in St. Louis city vs. county could effectively cost you 1% of your salary. A $100,000 job in Clayton is equivalent to $101,000 in St. Louis city after accounting for earnings tax.


    Business income: If you have side business income from work performed in St. Louis, that's also subject to the 1% tax, potentially creating a significant additional burden.


    Key takeaway: High earners face substantial St. Louis earnings tax costs — $1,000+ annually on six-figure incomes — making location decisions more financially significant.

    Key Takeaway: High earners face substantial St. Louis earnings tax costs — $1,000+ annually on six-figure incomes — making location decisions more financially significant.

    Sources

    st louis taxearnings taxlocal income taxmissouri taxes

    Reviewed by Sarah Chen, Payroll Tax Analyst on February 28, 2026

    This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.