Short-Term Rental Taxes in Missouri: Branson, Lake of the Ozarks, and Complete 2025 Guide
2–4.95% graduated state income tax (effectively 4.95% for most investors) | Conforms to federal bonus depreciation | ~4.225% state sales tax + local taxes | Branson total tourism tax ~8.475% | Top markets: Branson, Lake of the Ozarks, Kansas City, St. Louis
Missouri offers STR investors a favorable combination: a moderate income tax rate (effectively 4.95% for most investors), full federal bonus depreciation conformity, and two of the Midwest's most distinctive vacation markets. Branson is America's live entertainment capital — a Midwest equivalent of Nashville's show scene, drawing 10+ million visitors annually. Lake of the Ozarks offers 1,150 miles of shoreline and a lake culture that rivals any inland water recreation destination in the country. Both markets produce strong STR returns.
Missouri State Income Tax
Missouri's income tax technically has rates from 2% to 4.95%, but the brackets are very narrow — income over $9,072 hits the 4.95% top rate. In practice, the vast majority of STR investors' rental income is taxed at 4.95%. This is a mid-range rate among Midwest states — lower than Minnesota (9.85%) or Wisconsin (7.65%), comparable to Iowa, and slightly higher than Indiana (3.23%) or Ohio (3.75%).
Missouri also allows a deduction for federal income taxes paid on the Missouri return, which reduces the effective Missouri tax rate somewhat. Non-residents who own Missouri STR properties file Form MO-1040NR and pay Missouri income tax on Missouri-source income at the same rates.
Missouri Sales Tax and Tourism Taxes by Market
| Market / County | State Sales Tax | Local/Tourism Tax | Approximate Total |
|---|---|---|---|
| Branson (Taney County) | 4.225% | ~4.25% | ~8.475% |
| Lake of the Ozarks — Camden County | 4.225% | ~2–3% | ~6.5–7.5% |
| Lake of the Ozarks — Miller County | 4.225% | ~2–3% | ~6.5–7.5% |
| Kansas City (Jackson County) | 4.225% | ~7–8% | ~11.5–12% |
| St. Louis (city) | 4.225% | ~7% | ~11.5% |
| Springfield (Greene County) | 4.225% | ~3% | ~7.5% |
| Columbia (Boone County) | 4.225% | ~3% | ~7.5% |
Branson: Live Entertainment Capital STR Market
Branson attracts over 10 million visitors per year with its unique concentration of live music theaters, comedy shows, magic acts, and country music legends. Unlike traditional resort towns, Branson's entertainment is the primary draw — Table Rock Lake, just south of Branson, adds a water-recreation dimension. Properties on Table Rock Lake with boat docks and water views command premium rates and have excellent cost segregation profiles — dock systems and waterfront amenities are primarily 15-year assets. Branson demand patterns produce average stays well under 7 days, supporting the STR loophole cleanly.
Lake of the Ozarks: America's Boating Lake
Lake of the Ozarks is one of the largest man-made reservoirs in the U.S., stretching across Camden, Miller, Morgan, and Benton counties. Memorial Day through Labor Day brings intense boating and recreation activity that generates extraordinary STR demand. Lakefront properties with boat docks are the premium asset class — deep water dockage commands the highest prices and rental rates. Lake of the Ozarks is a particularly strong market for cost segregation: lakefront land improvements (docks, seawalls, boat lifts), outdoor entertainment areas, and vacation furnishing packages all contribute to high personal property ratios of 25–30%.
Cost Segregation in Missouri: Full Federal Conformity
Missouri's full federal bonus depreciation conformity means cost segregation works cleanly at both levels. A $500,000 Branson or Lake of the Ozarks property with $125,000 in bonus-eligible deductions saves $46,250 federally (at 37%) plus $6,188 in Missouri state taxes (at 4.95%) — a combined first-year benefit of over $52,000.
Estimate Your Missouri STR Tax Savings
Missouri's Branson and Lake of the Ozarks markets + full bonus depreciation conformity = excellent investment math. Get your free estimate.
Get My Free Estimate