What Is Missouri Sales Tax on Vehicles?

Missouri imposes a state-level sales tax on vehicle purchases, which contributes to funding various public services and infrastructure projects across the state. This tax applies to both new and used vehicles acquired from dealerships or private sellers. Understanding this tax is important for anyone purchasing a vehicle in Missouri, as it impacts the total cost.

Understanding the Missouri Vehicle Sales Tax Rate

The Missouri vehicle sales tax rate is composed of both a state portion and local components, which together determine the total tax applied. The statewide sales tax rate on vehicles is 4.225%. This rate is consistent across all vehicle purchases throughout Missouri.

In addition to the state rate, local sales taxes are also applied, varying based on the purchaser’s primary residence address within a specific city or county. These local rates can differ significantly, ranging from zero in some unincorporated areas to several percentage points in densely populated municipalities. Purchasers can find their combined state and local sales tax rate on the Missouri Department of Revenue website or by contacting local government offices.

Determining Your Vehicle’s Taxable Value

The taxable value of a vehicle in Missouri is the amount upon which the sales tax rate is applied. This value is determined by the purchase price. For instance, if a vehicle is purchased for $20,000, sales tax is calculated on that amount.

A common method to reduce the taxable value is through a trade-in allowance. When a buyer trades in an existing vehicle towards the purchase of another, the value of the trade-in is subtracted from the new vehicle’s purchase price before the sales tax is calculated. For example, if a new vehicle costs $25,000 and the buyer trades in a vehicle valued at $5,000, the sales tax would be calculated on $20,000, which is the $25,000 purchase price less the $5,000 trade-in. This reduction lowers the total sales tax owed.

Paying Your Vehicle Sales Tax

In Missouri, vehicle sales tax is paid when you title and register your vehicle. This process occurs at a Missouri Department of Revenue license office. Purchasers have 30 days from the date of purchase to title and register their vehicle and pay the applicable sales tax to avoid penalties.

When visiting the license office, several documents are required to complete the titling and registration process. These include the properly assigned certificate of title, a bill of sale detailing the purchase price, and an odometer disclosure statement. Proof of Missouri vehicle insurance is necessary. If there is a lien on the vehicle, a lien release may also be required. Payment for sales tax and other fees can be made via cash, check, or debit card, though options may vary by location.

Situations That May Qualify for Exemption

Certain situations may allow for an exemption from Missouri vehicle sales tax, reducing or eliminating the tax burden on a vehicle transfer. One common exemption applies to vehicles received as a bona fide gift, where no money or other consideration exchanges hands. To qualify, both the giver and receiver must complete a notarized affidavit stating the vehicle was a gift.

Transfers between immediate family members, such as a parent to a child or spouse to spouse, may also be exempt from sales tax. This exemption requires documentation proving the familial relationship and that the transfer occurred without monetary exchange. Vehicles purchased by qualified non-profit organizations or government entities for official use are exempt from sales tax. Specific documentation, such as proof of non-profit status or official government identification, is necessary to claim these exemptions at the time of titling.