Missouri has a complex mix of state and local sales taxes that vary considerably across the state. Sales tax rates in Missouri range from 4.225% to 11.679% depending on the city and counties. As a consumer or business in Missouri, it is important to understand how sales taxes work. In this comprehensive guide, there is handy Missouri sales tax calculator and all about sales tax laws in Missouri, exemption and administration.
Missouri Sales Tax Calculator
The Missouri sales tax calculator is a tool that figures out how much sales tax is owed on a purchase in Missouri. To use it, you simply select the city and county where the purchase is being made. You then enter the price of the item you’re buying. The calculator will automatically look up the combined state and local sales tax rate for that location and calculate the sales tax owed by multiplying the rate by the purchase price.
Missouri Sales Tax Calculator
Missouri Sales Tax Calculator
The Missouri sales tax calculator ensures you calculate sales tax properly and don’t accidentally underpay at checkout. It’s a convenient way to estimate Missouri sales taxes for any address.
Overview of Missouri Sales Tax
Missouri has a base sales tax rate of 4.225% across the state. Additionally, counties and cities can levy their own taxes leading to significant variation:
- State sales tax rate is 4.225%
- Combined state and local taxes range from 4.225% to 11.679%
- 2,400+ taxing jurisdictions across Missouri
- Tax levied on retail sales of goods and some services
- Sellers collect tax on eligible purchases from consumers
Basic groceries, prescription drugs and some services are exempt from sales tax in Missouri.
Sales Tax Rates across Different Parts of Missouri
Some examples of total sales tax rates in Missouri cities and counties:
- Kansas City – 8.475%
- St. Louis – 9.679%
- Jefferson City – 8.350%
- Columbia – 8.225%
- Springfield – 8.417%
- Joplin – 9.625%
- St. Charles – 7.975%
- St. Joseph – 8.35%
- Jefferson County – 7.7%
Use Missouri DOR’s tax rate lookup tool to find accurate sales tax rates applied based on jurisdiction.
What Purchases are Subject to Sales Tax in Missouri?
Broadly, the following goods and some services are subject to Missouri sales tax:
Goods
- Electronics like computers, phones, TVs
- Household items and appliances
- Furniture and home furnishings
- Automobiles and automobile parts
- Books, magazines, music, art
- Alcohol and tobacco
Services
- Restaurant meals and beverages
- Hotel rooms and other accommodations
- Telecommunications like cell phone services
- Admission to movies, concerts, events
- Repair and installation services for goods
Refer to Missouri DOR’s taxability list for details on taxable purchases.
Who Needs to Collect Missouri Sales Tax?
Any seller with a physical presence or economic nexus with Missouri must collect sales tax if annual revenues exceed the threshold. This includes:
- Businesses with stores/offices located in Missouri
- Restaurants, hotels and other Missouri service providers
- Online retailers shipping products to Missouri addresses
- Marketplace facilitators like Amazon, eBay, Etsy
- Remote sellers with over $100,000 in annual Missouri sales
Out-of-state sellers are also required to collect Missouri taxes on sales delivered into the state. Check here for sales tax registration requirements.
How Should Sales Tax be Collected in Missouri?
Sellers should follow these steps to collect, file and remit Missouri sales tax properly:
- Check taxability of goods and services being sold
- Identify delivery address to determine appropriate tax rate
- Calculate tax by applying the rate against transaction value
- Collect tax from customer along with payment
- File periodic sales and use tax returns with the Missouri DOR
- Submit all collected taxes on time to avoid interest and penalties
- Maintain proper documentation for all collection, remittance and filings
Using sales tax software can help accurately compute Missouri sales taxes.
Common Sales Tax Exemptions in Missouri
Some key transactions exempt from sales tax in Missouri are:
- Purchases by tax-exempt organizations
- Goods bought for resale or leasing
- Machinery and equipment used in manufacturing
- Prescription drugs and prosthetic devices
- Textbooks required for university courses
- Livestock used for breeding or milking
- Agricultural products and farm supplies
- Commercial motor vehicles over 26,000 lbs
See the Missouri sales tax exemptions guide for more details.
Sales and Use Tax Compliance Tips for Missouri Businesses
Some tips for remaining compliant with Missouri sales tax:
- Check if business needs to register for sales tax collection
- Use customer delivery addresses to determine correct tax rates
- Integrate sales tax software to accurately calculate tax
- Issue itemized invoices and receipts showing taxes collected
- File nil returns even if no taxes were collected in a period
- Maintain all tax records and books for at least 3 years
- Avoid penalties by making timely sales tax payments
Frequently Asked Questions
What is Missouri’s use tax rate?
Missouri’s use tax rate is identical to the sales tax rate that applies based on where the goods or services are ultimately used.
Does Missouri tax groceries and medicines?
No, most groceries and prescription drugs are exempt from sales tax in Missouri.
When are Missouri sales taxes due?
Collected sales taxes must be filed and paid monthly, quarterly or annually based on business volumes.
What are the penalties for incorrect sales tax in Missouri?
Late payments attract 2% interest per month. Incorrect tax calculation can lead to fines of 5% plus interest.
Can non-profits get sales tax exemption in Missouri?
Yes, charitable and religious non-profits can apply for sales tax exemption in Missouri.
Conclusion
Missouri has a complex sales tax structure with widely varying local taxes. Understanding taxability rules, using accurate rates, integrating sales tax software, timely filing and payment of taxes, and keeping diligent records can help Missouri businesses optimize sales tax compliance. This ensures maximization of post-tax profits.
