Missouri voters head to the polls on Tuesday to determine if the state will repeal its individual income tax. If voters pass Amendment 5, Missouri would become the 10th state without an income tax. The amendment asks voters to require the state legislature to gradually reduce the state income tax rate, with the goal of eliminating it by 2032. “Amendment 5 is a tax-cut amendment, placing taxpayer protections in the Missouri Constitution instead of relying on political promises,” Gov. Mike Kehoe said last month. “The Constitution—not politicians—sets the rules. A YES vote means Missouri workers win by keeping more of what they earn,” he added. Watch below: Amendment 5 is a tax-cut amendment, placing taxpayer protections in the Missouri Constitution instead of relying on political promises. The Constitution—not politicians—sets the rules. A YES vote means Missouri workers win by keeping more of what they earn. pic.twitter.com/qUrTjKCiTJ — Governor Mike Kehoe (@GovMikeKehoe) July 23, 2026 More from the Missouri Independent: A yes vote will allow a broad sales tax on all goods and services to make up for the loss in revenue. This would repeal limits currently in place on such taxation. The state’s sales tax is 4.225%. Gov. Mike Kehoe has suggested exemptions for healthcare, agriculture and real estate; the legislation passed by the House included no language for such exemptions. The resolution’s sponsor, state Rep. Bishop Davidson, a Republican from Republic, noted the amendment that voters will consider does not mandate that the state make any changes to a sales tax. However, the Missouri budget must be balanced, so the loss in income tax revenue must be made up elsewhere. Proponents of the resolution often compare Missouri to other states with no state income tax. Although a majority of these states rely on sales tax, their tax structures can vary drastically depending on different industries present, constitutional provisions or recent policy changes. “The truth about Amendment 5. There’s been a lot of misinformation about what Amendment 5 actually does,” the Missouri GOP stated. According to the Missouri GOP, the amendment includes constitutional protections that: Protect your income from ever being taxed by the State of Missouri again once the income tax is eliminated. Grant taxpayers protections over the next five years so the Missouri Legislature cannot expand annual revenues in a way that enlarges the tax burden. Require local tax rates to be reduced if the sales tax base is broadened. Protect funding for Missouri’s local public schools. Require the State Auditor to calculate new, reduced tax rates after legislation reducing or eliminating the income tax is enacted. The truth about Amendment 5. There’s been a lot of misinformation about what Amendment 5 actually does. The amendment includes constitutional protections that: Protect your income from ever being taxed by the State of Missouri again once the income tax is eliminated. … pic.twitter.com/dwFfn4PQ7F — Missouri GOP (@MissouriGOP) August 3, 2026 KCUR shared examples of what other states without an income tax do to generate state revenue: Florida receives over 70% of its general revenue from sales tax with another 11% coming from corporate income tax. The state gets revenue from tourism through the Tourist Development Tax. Nevada receives roughly 37% of its general revenue from a sales tax and use tax, including taxes on gaming fees, insurance premiums and a live entertainment tax. The state’s base rate is 6.85%. If Nevada were its own country, it would rank 10th in gold production, but tax revenue from natural resources only produces a small portion of revenue in taxes related to its natural resources. A state constitutional provision limits taxes on minerals. New Hampshire phased out its individual income tax in 2025 and does not have a state sales tax either. The state derives a little over a third of its budget from a business profits tax. New Hampshire has a meals and rooms tax, which serves as a form of tourism tax. This accounts for a little over one-tenth of its revenue. New Hampshire makes up the remainder of its revenue from miscellaneous fees, such as its tobacco tax, Medicaid enhancement tax and its tax on real estate transfers. South Dakota makes over 60% of its revenue from sales tax. The state has a base rate of 4.2% on general sales. The state also imposes a contractor’s excise tax, which is a 2% fee on the total cost of a construction project. This tax accounts for a little under one-tenth of the state’s budget. Similar to Nevada, South Dakota has a strong mining industry but derives less than 1% of its revenue from its severance tax. Tennessee makes up 60% of the state’s revenue from a general sales tax. Tennessee’s state sales tax is 7%. Tennessee employs a franchise and excise tax on corporations and businesses that contributes 16% of revenue. In Texas, a 6.25% state sales and use tax is imposed on all retail sales, leases and rentals for most goods and certain services. The state first imposed a sales tax structure in 1961, and it provides over half of the state’s budget. Texas fills the remainder of its budget with various taxes on motor vehicle sales, franchise taxes and taxes on the state’s natural resources. The post Red State Voters To Decide Future On Income Tax appeared first on 100PercentFedUp.com.