Retire in Missouri: Cost, Taxes & FIRE Number for 2026
Missouri offers a strong B+ retirement tax grade and an affordable $49,500 average annual retirement cost — making it one of the better-value retirement states in the Midwest for cost-conscious retirees.
What It Costs to Retire in Missouri
The average retiree in Missouri spends about $49,500 a year ($4,125/month), based on BLS spending data for households 65 and older, adjusted for Missouri's cost of living. That works out to a standard retirement number of $1,237,500 under the 4% rule, or $1.41M for early retirees using the more conservative 3.5% FIRE withdrawal rate.
Missouri earns a B+ retirement tax grade from Plootus Research — one of the stronger grades nationally. The state's top income tax rate of 4.5% is moderate, and Missouri provides generous Social Security exemptions for most retirees: married filers with combined income below $100,000 can fully deduct Social Security from state taxable income. The state also offers pension income deductions for qualifying retirees.
Missouri's #32 healthcare ranking reflects a system with strong capacity in St. Louis and Kansas City — including the nationally recognized Barnes-Jewish Hospital — but more limited access in rural areas. Overall, Missouri strikes a solid balance between affordability, tax favorability, and livability for Midwestern retirees.
Missouri Retirement at a Glance
| Annual Retirement Cost | $49,500 ($4,125/mo) |
| Standard Retirement Number (4% rule) | $1,237,500 |
| FIRE Number (3.5% SWR) | $1,414,286 |
| Retirement Tax Grade | B+ |
| State Income Tax | 4.5% max |
| Social Security Tax | ⚠️ Caution |
| Healthcare Rank | #32 of 50 |
| Avg. Household Income | $60,080 |
| Median Household Income | $50,460 |
| Overall Retirement Rating | ★★★★☆ |
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Missouri vs. Nearby States
| State | Tax Grade | HC Rank | Annual Cost |
|---|---|---|---|
| Missouri | B+ | #32 | $49,500 |
| North Dakota | B | #20 | $49,800 |
| Indiana | B | #34 | $48,800 |
| Iowa | B | #28 | $50,200 |
Missouri Retirement Tax Overview
State Income Tax
Missouri's top income tax rate of 4.5% is moderate by national standards, and the state has been gradually reducing its rate in recent years. Pension income from public employers is exempt, and the state provides a pension income deduction for private pensions as well. These exemptions meaningfully reduce the effective tax burden on retirement income for many Missouri retirees.
Social Security Tax
Missouri partially taxes Social Security benefits, but provides a generous exemption for most retirees: married couples with combined income below $100,000 can fully deduct Social Security benefits from state taxable income. The exemption phases out at higher income levels. For most middle-income retirees, Missouri's Social Security treatment is effectively tax-free in practice.
Healthcare in Retirement in Missouri
Missouri ranks #32 nationally for healthcare quality — a middle-tier result that varies significantly by location within the state. St. Louis and Kansas City have strong healthcare infrastructure: Barnes-Jewish Hospital in St. Louis is consistently ranked among the best hospitals nationally, and both metros have well-developed regional health networks. Rural access, particularly in the Ozarks and southeastern Missouri, is more limited.
HC Rank #32: Missouri sits in the middle third nationally for healthcare quality. Retirees in major metros like St. Louis or Kansas City will have solid access to quality care, including nationally ranked specialists. Those retiring in rural Missouri should carefully evaluate distance to major hospitals and availability of specialists before committing to a specific location.
Frequently Asked Questions: Retiring in Missouri
Missouri earns a B+ retirement tax grade — one of the stronger grades nationally — and sits at a solid middle position for both cost and healthcare. Average annual retirement spending runs about $49,500, requiring roughly $1,237,500 in savings under the standard 4% rule. Missouri's combination of affordable living, a favorable tax climate, and central location makes it a compelling retirement option in the Midwest.
Missouri partially taxes Social Security benefits, which is worth noting for retirees. However, the state provides a generous exemption — married filers with combined income below $100,000 can deduct 100% of their Social Security benefits from state taxable income. Higher-income retirees may see a partial phase-out of this exemption, but for most retirees, Social Security is effectively tax-free in Missouri.
Using the standard 4% rule, retiring in Missouri on its average annual cost of $49,500 requires approximately $1,237,500 in savings. That figure excludes Social Security, which most retirees layer on top. Missouri's cost of living is below the national average, and the combination of a low cost base and a strong B+ tax grade makes it one of the better value propositions for Midwestern retirement.
At a 3.5% safe withdrawal rate — the more conservative rate recommended for early retirees facing a 40–50+ year horizon — Missouri's FIRE number is approximately $1.41M, based on its $49,500/year average cost. Early retirees in Missouri benefit from both the low cost base and favorable income tax structure, making the gap-to-retirement more achievable than in higher-cost states.
Missouri ranks #32 nationally for healthcare quality — a middle-tier result. The St. Louis and Kansas City metro areas have strong hospital systems including Barnes-Jewish Hospital (ranked among the nation's best) and several major regional health networks. Healthcare access is more limited in rural parts of the state, particularly the Ozarks region.
Sources
- Plootus Research Team, 2026 State Retirement Cost Analysis
- U.S. Bureau of Economic Analysis — Regional Price Parities
- Missouri Department of Revenue — Individual Income Tax Guide
- Commonwealth Fund — State Healthcare Rankings 2025
- U.S. Census Bureau — American Community Survey
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