Self-employed in St. Louis, MO: taxes and retirement for 2026

What consultants, freelancers, content creators, entrepreneurs, gig workers, tipped workers and tradespeople in St. Louis, MO need to know this year: local taxes, Missouri income and estimated tax rules, and how to save for retirement without an employer plan.

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St. Louis local rules

Local income tax: City of St. Louis Earnings Tax: 0.01% for residents, 0.01% for nonresidents (effective The earnings tax has been law since 1954; voters approved continuing the 1% tax for another five years on April 7, 2026 (Proposition E)). City residents pay 1% on all earnings, and non-residents pay 1% on earnings from work done in the city. Self-employed people, independent contractors and sole proprietors report and pay the 1% on business net profits with Form E-234, and non-resident businesses split their earnings by a three-factor formula (receipts, property and payroll).
St. Louis Business Earnings Tax (Form E-234): 1% of the net earnings of every business located in, or doing work in, the city, including self-employed people, contract workers and sole proprietors. Non-resident businesses use a three-factor formula (receipts, property and payroll). The return is due April 15 for calendar-year filers (businesses can request an extension to Oct. 15 on Form E-8), and a business must open an earnings tax account (Form E-9) before it starts operating.
St. Louis Payroll Expense Tax: Employers pay 0.5% of wages earned by employees working in the city, filed quarterly on Form P-10. There is no small-employer threshold, but a self-employed person with no employees does not owe it.
St. Louis Graduated Business License: Required for businesses not exempt by law. The fee depends on the number of St. Louis employees and is $200 a year for 0-2 employees.
St. Louis Short-Term Rental Business License (Ord. 72095): Since Feb. 26, 2026, short-term rental operators must hold a Short-Term Rental Business License and pay a 3% license fee each quarter.
City business license: Yes. The License Collector says any person doing business within city limits must have a business license; the city site makes no exception for home-based businesses, and a business located in the city also needs an Occupancy Permit.
Also worth knowing: Rates are decimal fractions (0.01 = 1%). Official April 7, 2026 results: https://www.stlouis-mo.gov/government/departments/board-election-commissioners/elections/election.cfm?customel_datapageid_524494=1216425 (Proposition E passed with about 85% yes). Late individual payments draw a 5% monthly penalty (up to 25%) plus 1% monthly interest, and individuals cannot get filing extensions. Form E-234 (for self-employed and contract workers): https://www.stlouis-mo.gov/government/departments/collector/earnings-tax/documents/e-234-form.cfm. Form E-9 requirement: https://www.stlouis-mo.gov/government/departments/collector/earnings-tax/documents/e-9-form.cfm. We found no local gig-worker pay laws.

Missouri rules that apply in St. Louis

State income tax (2026): Missouri has a graduated state income tax for 2026: 2% to 4.7% (top rate starts at $9,436 for single filers). 2026 brackets: the first $1,348 of taxable income is taxed at 0%, then rates run from 2.0% up to 4.7% on taxable income over $9,436. The same brackets apply to every filing status. A legislative constitutional amendment to phase out the income tax (HJR 173/174, Amendment 5) appeared on the August 4, 2026 primary ballot (sos.mo.gov) and was defeated by voters, so 2026 rates are unchanged.
State estimated tax: You must file a declaration and pay estimated tax if your Missouri estimated tax (after withholding and credits) is expected to be $100 or more (Section 143.521.1, RSMo). Same dates as federal (April 15, June 15, September 15, January 15). Farmers may pay by January 15, or file and pay in full by March 1. Form MO-1040ES.
Minimum wage (2026): $15.00 an hour; tipped cash wage $7.50 an hour. Tipped workers must get at least 50% of the minimum wage ($7.50) in cash, and tips must bring them to $15.00. Retail and service businesses with under $500,000 in annual gross income do not have to pay the state rate. HB 567 (2025) repealed the inflation increases that were set to start in 2027 and also repealed Prop A paid sick leave.
Unemployment right-to-control test (RSMo 288.034.5): Missouri unemployment law uses the common-law right-to-control test. If the business controls the manner and means of the work, the worker is an employee; if it controls only the results, the worker is an independent contractor. Some licensed real estate agents and direct sellers paid on output under a written contract are excluded.
Rideshare (TNC) driver contractor status (RSMo 387.414): Rideshare drivers are independent contractors, not employees, if the company does not set required logged-in hours, does not bar them from other rideshare apps, does not restrict other work, and both sides agree in writing that the driver is a contractor. In effect since August 28, 2017.
State retirement program: Show-Me MyRetirement Savings Plan is live. It is built around W-2 employers and does not cover 1099 contractors through the employer mandate.

Questions

Is there a local income tax in St. Louis?

Yes. City of St. Louis Earnings Tax is 0.01% for residents and 0.01% for nonresidents (effective The earnings tax has been law since 1954; voters approved continuing the 1% tax for another five years on April 7, 2026 (Proposition E)). City residents pay 1% on all earnings, and non-residents pay 1% on earnings from work done in the city. Self-employed people, independent contractors and sole proprietors report and pay the 1% on business net profits with Form E-234, and non-resident businesses split their earnings by a three-factor formula (receipts, property and payroll).

What local business taxes apply to self-employed self-employed people in St. Louis?

St. Louis Business Earnings Tax (Form E-234): 1% of the net earnings of every business located in, or doing work in, the city, including self-employed people, contract workers and sole proprietors. Non-resident businesses use a three-factor formula (receipts, property and payroll). The return is due April 15 for calendar-year filers (businesses can request an extension to Oct. 15 on Form E-8), and a business must open an earnings tax account (Form E-9) before it starts operating. St. Louis Payroll Expense Tax: Employers pay 0.5% of wages earned by employees working in the city, filed quarterly on Form P-10. There is no small-employer threshold, but a self-employed person with no employees does not owe it. St. Louis Graduated Business License: Required for businesses not exempt by law. The fee depends on the number of St. Louis employees and is $200 a year for 0-2 employees. St. Louis Short-Term Rental Business License (Ord. 72095): Since Feb. 26, 2026, short-term rental operators must hold a Short-Term Rental Business License and pay a 3% license fee each quarter.

Do I need a business license to freelance from home in St. Louis?

Yes. The License Collector says any person doing business within city limits must have a business license; the city site makes no exception for home-based businesses, and a business located in the city also needs an Occupancy Permit.

Do self-employed people in Missouri pay state income tax?

Missouri has a graduated state income tax for 2026: 2% to 4.7% (top rate starts at $9,436 for single filers). 2026 brackets: the first $1,348 of taxable income is taxed at 0%, then rates run from 2.0% up to 4.7% on taxable income over $9,436. The same brackets apply to every filing status. A legislative constitutional amendment to phase out the income tax (HJR 173/174, Amendment 5) appeared on the August 4, 2026 primary ballot (sos.mo.gov) and was defeated by voters, so 2026 rates are unchanged.

When are Missouri estimated tax payments due for 2026?

You must file a declaration and pay estimated tax if your Missouri estimated tax (after withholding and credits) is expected to be $100 or more (Section 143.521.1, RSMo). Same dates as federal (April 15, June 15, September 15, January 15). Farmers may pay by January 15, or file and pay in full by March 1. The state form is MO-1040ES.

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Sources

Facts researched from official sources and independently re-checked; last verified October 2026, next scheduled review 2027-01-02. Educational information for 2026, not tax, legal or investment advice. Rules change; check the official sources listed and a tax professional for your situation. Gigaverse AI, Inc. is a financial technology company, not a bank, and not itself a registered investment adviser or broker-dealer.