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Gov. Mike Kehoe Wants Voters to Decide Whether Missouri Should Eliminate Its Income Tax

Governor Kehoe aims to replace income tax revenue by expanding sales taxes on digital services and cutting $600 million from the budget, seeking voter approval for phased repeal.

  • On Tuesday, Governor Mike Kehoe delivered the 2026 State of the State at the Missouri State Capitol, proposing a budget that cuts $600 million and addresses a $2 billion shortfall for fiscal year 2027.
  • Citing the need to serve Missourians without overspending, Kehoe said the recommendation proves state government can live within its means while supporting essential services.
  • Calling the tax change a major agenda item, Kehoe said, `If we are serious about building a foundation for growth, to compete rather than be complacent, then we must begin the work now to phase-out and eliminate Missouri's individual income tax` and urged the General Assembly to put it on the November 2026 ballot.
  • Before the speech, Kehoe signed executive orders 26-01 through 26-04 on schools, AI, Missouri GREAT program, and Advanced Nuclear Energy Task Force, insisting he will never support extending sales taxes on agriculture, healthcare, or real estate.
  • Arguing for modernization, Kehoe said Missouri's tax code was built for the past 100 years and the Missouri economy demands a tax code for the next 100 years.
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Gov. Mike Kehoe wants voters to decide whether Missouri should eliminate its income tax

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The Missouri Times broke the news in on Monday, January 12, 2026.
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