Missouri HB2690 proposes to replace income and estate taxes with a sales tax on new retail purchases.

HB2690, the "Fair Tax Act of 2026," aims to replace individual and corporate income taxes and the estate tax with a new sales tax on all new retail sales and services in Missouri. The sales tax rate is set at five and eleven one-hundredths percent. This change would take effect starting January 1, 2028, and is subject to voter approval in a November 2026 election. The bill also includes provisions for a potential adjustment to the sales tax rate if the revenue collected differs from the revenue lost from the eliminated taxes.

Missouri HB2690 proposes to replace income and estate taxes with a sales tax on new retail purchases.

HB2690, the "Fair Tax Act of 2026," aims to replace individual and corporate income taxes and the estate tax with a new sales tax on all new retail sales and services in Missouri. The sales tax rate is set at five and eleven one-hundredths percent. This change would take effect starting January 1, 2028, and is subject to voter approval in a November 2026 election. The bill also includes provisions for a potential adjustment to the sales tax rate if the revenue collected differs from the revenue lost from the eliminated taxes.