Missouri Property Tax Credit

Quick Facts

• What it is: A refundable income tax credit—often called the “circuit breaker”—that returns part of the property tax or rent paid by eligible seniors and people with disabilities.
• Credit amounts: Up to $1,100 for homeowners and $750 for renters, depending on household income and actual taxes or rent paid.
• Who qualifies: Missouri residents age 65+, 100% disabled, disabled veterans with service-connected disabilities, or surviving spouses age 60+ of qualifying individuals who meet income limits.
• How to apply: File Form MO-PTC with your state income tax return (Form MO-1040) or standalone if you are not required to file income tax. Attach documentation of property tax or rent payments.
• When you get paid: Credits are refundable—if the credit exceeds your tax liability, the state issues a check or direct deposit.

Program Overview

The Missouri Property Tax Credit (PTC) helps seniors and disabled residents cope with rising housing costs. Introduced in 1973 and expanded over the decades, the credit recognizes that property taxes and rent (which indirectly covers property taxes) can burden fixed-income households. Unlike deductions, the PTC is refundable, providing cash even if you owe no state income tax. The Department of Revenue (DOR) administers the program through the annual tax filing process.

Recent legislative proposals seek to raise income limits and maximum credit amounts. While as of 2025 the maximums remain $1,100 and $750, keep an eye on DOR updates or legislative changes. Some local agencies and nonprofits provide free tax preparation services to help claimants complete the application correctly and avoid missing documentation.

Eligibility Requirements

Qualifying Status

You must meet one of the following criteria on the last day of the tax year:

• Age 65 or older.
• 100% disabled (Social Security disability or other proof).
• Disabled veteran as a result of military service.
• Surviving spouse age 60+ of someone who qualified for the credit.

Residency and Housing

• Must be a Missouri resident for the entire year.
• Homeowners must have paid real estate taxes on the primary residence; renters must have paid rent to a landlord who paid property tax.
• Eligible property includes houses, apartments, mobile homes, and nursing home units where the resident pays rent covering property taxes.

Income Limits

• Income includes Missouri adjusted gross income plus Social Security, pensions, veterans’ benefits, railroad retirement, and other non-taxable income.
• For tax year 2024, income limits (subject to change) are approximately:
  • Single renter: $27,500 (phase-out up to $30,000).
  • Single homeowner: $30,000 (phase-out up to $34,000).
  • Married filing combined: $39,000 (renters) and $40,000 (homeowners) with phase-outs up to $43,000 or $45,000.
• Credits phase out as income approaches the upper limits.

Documentation

• Homeowners: Provide copies of paid real estate tax receipts from the county collector.
• Renters: Obtain a completed Form MO-PTS from landlord or authorized representative verifying rent and property tax allocation.
• Nursing home residents: Provide a statement from the facility indicating the amount of rent attributable to room and board.

Credit Calculation

The credit is based on the amount of property tax or rent paid and your income. For renters, Missouri assumes that 20% of rent represents property tax. The credit formula compares property tax/rent to a percentage of income, ensuring relief targets those with higher housing cost burdens. The DOR provides tables in the MO-PTC instructions showing credit amounts by income level. If you are near the income thresholds, calculate carefully to avoid over-claiming.

Application Process

1. Gather records: Collect tax receipts, rent verification (Form MO-PTS), Social Security statements, pension 1099s, and documentation of other income.
2. Download forms: Obtain Form MO-PTC and instructions from the DOR website. If filing with your state return, attach MO-PTC to Form MO-1040 or MO-1040P.
3. Complete the form: Enter personal information, income details, property tax or rent amounts, and calculate the credit using provided tables.
4. Choose filing method: File electronically using DOR-approved software (many free-file vendors support MO-PTC) or mail paper forms to the DOR.
5. Keep copies: Retain all documentation for five years. The DOR may request verification.
6. Monitor refund: Track your refund via the DOR’s “Where’s My Refund?” portal or by calling the refund hotline.

Strategies for Accurate Filing

• Use free tax assistance: AARP Tax-Aide, Volunteer Income Tax Assistance (VITA), and community action agencies are trained on MO-PTC and can ensure proper documentation.
• Verify landlord compliance: Renters should confirm that landlords paid property taxes; if taxes are delinquent, the credit may be denied.
• Include all income: Failing to report certain pensions or Social Security can lead to audits. Use the worksheet in the instructions to total all income sources.
• Amend if necessary: If you discover missing documentation or misreported income, file Form MO-1040X with an updated MO-PTC. The statute of limitations is three years from the filing deadline.
• Plan for future years: Track property tax increases and rent receipts to anticipate credit amounts. Consider appealing property valuations to lower taxes and maintain eligibility.

Interaction with Other Programs

• Real estate tax deferral: Some Missouri counties offer tax relief or deferral; the PTC can complement these programs by providing refunds that help pay deferred amounts.
• Utility assistance: LIHEAP, weatherization, and local utility rebate programs reduce other housing costs, making it easier to stay within income limits.
• Supplemental Nutrition Assistance Program (SNAP) and Medicaid: PTC refunds generally do not count as income if spent within a reasonable period, but consult caseworkers for confirmation.
• Federal benefits: The PTC is separate from federal tax credits. You can still claim federal EITC or Child Tax Credit if eligible.

Example Scenarios

• Homeowner: Mrs. Walker, age 72, pays $1,600 in property tax and has $24,000 household income. Using the MO-PTC table, she qualifies for an $800 credit, which arrives as a refund check.
• Renter: Mr. Davis, a 68-year-old renter with $20,000 income, pays $800 per month in rent. Missouri counts 20% ($1,920) as property tax. He qualifies for the maximum $750 credit.
• Disabled veteran: Sgt. Nguyen, 100% disabled and with $18,000 income, owns a home with $2,200 taxes. He receives the full $1,100 credit and combines it with county veteran tax relief.

Frequently Asked Questions

• Do I have to file a Missouri income tax return to claim the credit? No. File MO-PTC even if you are not otherwise required to file a state return.
• Can I file MO-PTC electronically? Yes. Many software providers support the credit. DOR’s “Where’s My Refund?” tool works for electronic filings.
• What if my landlord won’t sign Form MO-PTS? Request assistance from the DOR or local housing authorities. Provide rent receipts and canceled checks as backup.
• Is the credit taxable income? No. The refund is not taxable for federal or state income tax purposes.
• Can I claim for past years? You can file within three years of the original due date. For example, tax year 2022 claims are accepted until April 15, 2026.

Additional Resources

• Missouri Department of Revenue – Property Tax Credit
• Form MO-PTC Instructions
• Volunteer Income Tax Assistance (VITA) Sites
• Area Agencies on Aging Missouri
• Missouri Legal Services