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September 15, 2021
If you are looking to purchase a vehicle, you will want to factor in the state sales tax. In some cases, the state sales tax can add hundreds or even thousands of dollars to the cost of the vehicle. Some states have better rates than others.
Vehicles purchased in Missouri will be subject to the state sales tax of 4.225%, plus any local taxes and fees.
Here’s a look at the current state sales tax rate in Missouri and how to calculate the tax amount.
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The current state sales tax on car purchases in Missouri is a flat rate of 4.225%. That means if you purchase a vehicle in Missouri, you will have to pay a minimum of 4.225% state sales tax on the vehicle's purchase price.
There may be an additional local tax rate as well, which can go as high as 6.125% or as low as 0.5%. However, the average local tax rate is 2.796%, making the average total tax rate in Missouri 7.021%.
We have seen instances that Missouri can only charge a maximum of $725 in taxes, but we could not verify it through Missouri's DMV site. It might be worth bringing up at the dealership but plan on paying more than the quoted $725 figure in taxes.
You can calculate the Missouri sales tax on a car by multiplying the vehicle's purchase price by the Missouri state sales tax rate of 4.225%.
Be sure to subtract any trade-ins or rebates and incentives before multiplying the tax rate.
Calculate Car Sales Tax in Missouri Example:
- Let's say you purchase a new vehicle for $50,000
- Your trade-in vehicle is worth $7,500 and you get a $2,500 rebate
- That puts the cost of the vehicle at $40,000
- Now multiply $40,000 by 4.225%
- This gives you a states sales of $1,690
The example above does not account for the additional local tax rate.
Yes. If you purchase a used vehicle in Missouri, then you would still have to pay the 4.225% Missouri state sales tax.
When you factor in the local sales tax along with the state sales tax, the city or county with the highest tax is Branson, with a combined rate of 10.35% (local tax rate is 6.125%).
When you factor in the local sales tax along with the state sales tax, the cities or counties with the lowest tax are Osceola, Collins, Roscoe, and Rockville, with a combined rate of 4.725% (local tax is 0.5%).
In the state of Missouri, your trade-in is not subject to the state sales tax. Therefore, you can lower your overall tax burden if you include a trade-in as part of the sale of your vehicle.
For example, let’s say that you want to purchase a new vehicle with a purchase price of $50,000. However, if you have a trade-in valued at $10,000, then the taxable purchase price of the vehicle is now just $40,000.
Missouri does tax private vehicle sales, and you are responsible for paying the state sales tax.
For instance, if you purchase a vehicle from a private seller for $30,000. Then that vehicle sale will be subject to the state’s 4.225% tax or $1,267.50.
In the state of Missouri, you are only taxed on the out-of-pocket cost of the vehicle, which is the amount after deducting trade-ins and rebates.
Let’s say that you purchase a vehicle for $50,000 and get a $2,500 rebate. That $2,500 will not be subject to the 4.225% state sales tax. So the total taxable amount is $47,500.
In the state of Missouri, you will have to consider other factors when it comes to calculating the total cost of your vehicle. Here’s a look at the various DMV and dealership fees that you may have to pay.
There are several situations where sales tax on a vehicle can be exempt in Missouri. Here’s a look at the currently available exemptions:
There are currently no state EV rebates or incentive programs.
However, any EV vehicle purchased in the state of Missouri is eligible for a Federal EV rebate that is worth up to $7,500.
Tax information and rates are subject to change, please be sure to verify with your local DMV.
The state sales tax on vehicles purchased in Missouri is 4.225%. For instance, if you purchase a vehicle for $40,000, then the state sales tax on that vehicle would be $1,690.
You will have to pay the 4.225% state sales tax on used vehicles in Missouri. For instance, if you purchase a used vehicle for $25,000, then your state sales tax will be $1,056.50.
The city or county with the highest overall tax is Branson, with an overall tax of 10.35%. Conversely, the cities or counties with the lowest overall tax are Osceola, Collins, Roscoe, and Rockville, with an overall tax of 4.725%.
There is currently no state sales tax on a vehicle that is transferred to a new owner via a Gifted Title Transfer.
The registration fee for a vehicle in the state of Missouri is $51.25 per year. There is also an option to register a vehicle for two years for $102.50.
A trade-in is not subject to state sales tax. For instance, if you purchase a new vehicle for $50,000 and you have a trade-in that is valued at $10,000, then your vehicle’s overall purchase price will be $40,000. That is the amount that will be used when calculating the state sales tax.
There are several ways that you can avoid paying state sales tax in Missouri. One of the options is to purchase the vehicle out of state and pay out-of-state sales tax. You can also be gifted a vehicle and avoid having to pay the state sales tax. Yet another option is to purchase the vehicle through an entity that is on the state’s exempted list. The current entities on the state’s exempt list include charities, religious entities, public schools, and government agencies. Finally, you can purchase a vehicle with a weight of over 56,000 pounds.
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