Authorizes an income tax exemption for certain state employees whose state wages or salary are at or below six times the federal poverty guidelines

HB 421 exempts certain Missouri state employees' income from state income tax if their wages are at or below six times the federal poverty guidelines. It directly affects full-time or part-time state employees (excluding elected officials, contractors, or one-time workers) whose state employment income does not exceed this threshold. The bill creates a tax-free allowance for wages up to this level, with income above the threshold remaining taxable. The exemption applies starting January 1, 2026, and is applied before other tax deductions when calculating taxable income.