How Much Are Taxes on a Car in Missouri?

Owning a vehicle in Missouri involves tax obligations beyond the initial purchase. The total cost includes a one-time sales tax when you buy the car and an annual personal property tax. These taxes are calculated differently and are paid to separate government bodies, and this is a standard part of vehicle ownership in the state.

Calculating Sales Tax on a Vehicle Purchase

When purchasing a new or used vehicle, Missouri levies a statewide sales tax of 4.225%. This state rate is only part of the total tax due, as cities, counties, and special taxing districts impose their own local sales taxes. The combined rate varies by residential address, so you should use the Missouri Department of Revenue’s online tax calculator to find the precise rate.

The tax is calculated on the vehicle’s taxable purchase price, not the sticker price. The value of any vehicle you trade in to the dealer is subtracted from the purchase price before the tax is applied, and any manufacturer rebates are also deducted. For example, if you buy a car for $30,000 and receive a $5,000 allowance for your trade-in, the sales tax is calculated on the remaining $25,000.

This tax applies to vehicles bought from dealerships and through private sales. If you owned and operated a vehicle in another state for at least 90 days before moving to Missouri, no sales tax is due. If you owned it for less than 90 days, you owe the difference between the tax you paid in the previous state and what you would owe in Missouri. When a vehicle is gifted, the recipient does not pay sales tax, but “GIFT” must be written on the title application with a signed affidavit.

Understanding Annual Personal Property Tax

Distinct from the one-time sales tax, vehicle owners in Missouri must pay an annual personal property tax. This tax is based on the vehicle’s assessed value, which changes each year, not its purchase price. The County Assessor determines the vehicle’s value and the County Collector sends the tax bill for vehicles you owned on January 1st of the tax year.

The calculation begins when the County Assessor determines the market value of your vehicle, often using a guide like the NADA official used car guide. A statewide assessment rate of 33.33% is then applied to this market value to determine the assessed value. For instance, a vehicle with a market value of $15,000 would have an assessed value of $5,000.

Your final tax bill is calculated by applying the local tax levy to this assessed value. This levy is a combined rate set by local political subdivisions, such as school districts and city governments, and it varies widely across the state. Using the previous example, if the local levy is $7 per $100 of assessed value, the annual property tax on the $5,000 assessed value would be $350.

Required Documentation and Fees for Titling and Registration

You must gather several documents before visiting a license office. These include:

• The vehicle’s proof of ownership, which is either the original title properly signed over to you or the Manufacturer’s Certificate of Origin for a new car.
• A completed and signed Application for Missouri Title and License.
• Proof of active auto insurance.
• A certificate from a safety inspection conducted within the last 60 days. A current safety inspection also fulfills the ID/OD inspection requirement for out-of-state vehicles.
• Proof of paid personal property tax for the previous year or a statement of non-assessment from your County Collector.

You will also pay state-mandated fees, including an $8.50 title fee and a $6.00 processing fee. Registration fees for passenger vehicles are based on taxable horsepower and range from $18.25 to $51.25 for a one-year registration.

The Titling and Registration Process

You have 30 days from the purchase date to title your vehicle at a Missouri Department of Revenue license office. Failing to meet this deadline results in penalties, which start at $25 and increase every 30 days to a maximum of $200.

At the office, you will submit your application and supporting documents. A clerk will verify your paperwork and calculate the total amount due, which includes the state and local sales tax plus all applicable title and registration fees. You can pay with a check or credit card.

Upon successful payment, you will receive your new license plates and registration tabs immediately. The official Certificate of Title for your vehicle will be processed by the Department of Revenue and mailed to you separately, typically within a few weeks.