Every year since 2003, the Tax Foundation has compiled an index that rates all 50 states on the competitiveness of their tax systems. The index considers five categories of taxation: corporate taxes, individual income taxes, sales and excise taxes, property and wealth taxes, and unemployment insurance taxes. Late last month, the Tax Foundation released their 2026 version of the index. Missouri ranked 12th overall, an improvement from 13th in the 2025 edition.

Within the five ranking categories, Missouri’s strongest placement is a tie between corporate taxes and unemployment insurance taxes, ranking 5th in both. On the other hand, Missouri takes spot 25 in sales taxes, its worst subcategory. The Tax Foundation rates Missouri as the 12th best state for property taxes, a strong result for the real estate industry. Finally, Missouri places 17th in individual income taxes.

Though Missouri has taxes in all five categories, it performs well overall because of its low rates and efficient tax structures. For example, Missouri’s corporate tax rate is tied for the second lowest among states that have a corporate tax. Additionally, despite having an individual income tax, it rates very well on progressivity and exempts capital gains. Missouri’s tax competitiveness is most held back by high sales taxes at the local level.

Tax policy at the state and local level has a major impact on business general and commercial real estate specifically. Though Missouri can improve its tax environment, it is currently in the top 25% of states in the US. NAIOP advocacy is essential to keep it there going forward.