Missouri Economy: Logistics, Agriculture, and Bi-State Metros

Missouri is a mid-sized state economy, usually ranked in the upper-middle of U.S. states by GDP — the dollar value of everything a place makes and sells in a year. The Missouri economy is anchored by two very different metros — St. Louis on the Mississippi and Kansas City on the Missouri River — plus a large agricultural and logistics base in between.

This is a plain-English tour. For the national picture, see The State of the U.S. Economy and the Economy hub.

How big is the Missouri economy?

For example, recent state GDP for Missouri has run around $400 billion, according to the Bureau of Economic Analysis. Population is roughly 6.2 million, per the U.S. Census Bureau. The St. Louis and Kansas City metros each anchor a different regional economy, with bi-state spillovers into Illinois and Kansas.

The biggest industries

Missouri has a diversified industry mix. The main pillars are:

• Logistics and transportation — Missouri's central location, two big river ports, and dense rail network make it a national distribution hub; Kansas City is the second-largest U.S. rail hub after Chicago.
• Agriculture — Missouri is a top producer of soybeans, corn, cattle, and hogs; agribusiness companies like Bayer Crop Science (in St. Louis) anchor the sector.
• Aerospace and defense — Boeing's Defense, Space and Security headquarters is in St. Louis, supporting tens of thousands of jobs.
• Healthcare — large hospital systems like BJC HealthCare in St. Louis and Saint Luke's in Kansas City are major employers.
• Financial services — Edward Jones, H&R Block, and Commerce Bancshares are Missouri-headquartered.
• Food and beverage — Anheuser-Busch is headquartered in St. Louis; Hostess and several other food companies have large Missouri operations.

Jobs and wages

Missouri labor data is published by the Missouri Department of Labor and Industrial Relations, with national-level numbers from the Bureau of Labor Statistics. For example, the Missouri unemployment rate has typically run close to the national average, with Kansas City often the tightest labor market in the state.

The Missouri minimum wage is set by the state and is above the federal $7.25 floor; voters have approved increases by ballot measure in recent years.

Taxes in Missouri

Missouri has a graduated state income tax with relatively low top rates compared to neighboring states. Kansas City and St. Louis charge a separate 1% earnings tax on residents and people who work in those cities.

The state sales tax rate is 4.225%, with significant local add-ons that push the combined rate above 8% in many areas. Groceries are taxed at a reduced state rate. State tax forms and rules live at the Missouri Department of Revenue. You can read more about how sales tax works in our glossary.

Cost of living

Cost of living in Missouri is typically below the national average. Both St. Louis and Kansas City are among the more affordable major metros in the country. The federal government tracks region-specific Consumer Price Index data through the BLS Midwest region, and HUD publishes Fair Market Rents for every county at HUD User.

Bi-state metros

Both of Missouri's big metros straddle state lines. St. Louis sprawls into Illinois; Kansas City extends into Kansas. That means Missouri's labor market and tax base are deeply intertwined with two neighboring states, and a meaningful share of "Missouri" workers actually commute from across a state border.

The St. Louis economy

St. Louis is a research-and-defense town in a way that surprises visitors. Boeing's defense unit, Washington University, and a deep biotech cluster anchored by the Donald Danforth Plant Science Center give the metro an unusually heavy science and engineering presence. The city also has a long-standing financial services and brewing tradition, even as the population has shrunk from its 20th-century peak.

The Kansas City economy

Kansas City's economy leans more on logistics and animal health. The metro is one of the largest rail and trucking hubs in North America, and the "Animal Health Corridor" running between Manhattan, Kansas, and Columbia, Missouri, contains the highest concentration of animal health and nutrition companies in the world. Kansas City is also home to large engineering, telecommunications, and financial services employers.

How does the Missouri economy fit into the national picture?

Missouri's central location is its biggest economic asset. The state moves an outsized share of the country's grain, cattle, and trucked goods. Population growth is modest but steady, with most gains in the suburbs of Kansas City and the southwest corner around Springfield.

A note on the numbers

Numbers in this article change every quarter — always check the latest from BEA, BLS, and the Missouri Department of Revenue for the most current data.