Are you a Missouri resident planning you buy a car? It may have many fees, like registration, plate, and title. Also, understanding how the state taxes car buyers is critical in purchasing. So, what can be the Missouri car sales tax rate?
In addition to the statewide tax rate, you must pay the county and local taxes while buying a car in the state. So the rates can vary drastically depending on your county or area. Don’t worry! Our article will be a perfect car sales tax calculator and help you understand every aspect.
How much is the sales tax in Missouri on cars?
Car sales tax rate in the state is 4.225%. In addition to this rate, you’ll have to pay a county or local sales tax, which varies significantly. The highest tax in the state is at St Louis County, with a rate of 11.988%. Scotland County has the lowest combined rate, with a car sales tax rate of only 6.975%.
How to calculate Missouri sales tax on a car
You can easily do it via the Missouri Department of Revenue website. Use their tax calculator website to get the exact quote. You can then enter your dealership’s details to determine how much you’ll pay.
Does trading in a car reduce sales tax in the state?
Trade-in is a great way to reduce the tax rate on cars. Most car dealerships will allow you to trade in your current or old car to reduce the cost of a new one. In Missouri, you will only get taxed on the car price after the trade-in. For instance, you trade in your car and receive a credit of $3,000 against the buying price of $10,000 for your new car. So, the expense you pay from your pocket is $7,000 only and saves tax on the trade-in amount.
How are rebates and incentives taxed?
Dealerships offer discounts and incentives when buying a new car. For instance, imagine you get a $1,000 rebate from your dealer on your new car worth $10,000. Missouri taxes car purchases after applying rebates or incentives. So you would only pay taxes on the $9,000 you paid for the car rather than the full amount.
What happens if you don’t pay sales tax on a car in the state?
After buying a car, you must title it and pay the sales tax within 30 days of the purchase date. After that, be ready to pay a title penalty. If you do not title the car within 30 days, you’ll be charged a title penalty of $25 on the 31st day after purchase. The penalty surges by another $25 for every 30 days of late fee payment, with a maximum penalty of $200.
Know about the penalty for driving without auto insurance in Missouri
Do you pay sales tax on a used car in Missouri?
Yes. The car sales tax rate of 4.225% applies to the sale of all cars, irrespective of new or secondhand.
Do I have to pay sales tax on a car purchased out of state?
Yes. You must pay the tax when getting a title, regardless of where you bought the car.
What other fees must you pay while buying a car in the state?
Your car buying cost doesn’t end with the sales tax rate. These are the extra costs you must pay during the purchase.
| Category | Fee |
| Title | $8.50 |
| Registration | $24.25-$57.25 |
| Plate transfer | $2 |
| Permit | $5 |
| Documentation | $500 (maximum) |
The documentation fee covers the cost of creating and filing the sales tax documents and contracts by the dealer. The law doesn’t impose any limit on this fee. So, the fee can vary with each dealer and the car model.
Do you have to pay sales tax on a gifted car in Missouri?
No. You don’t have to pay Missouri car sales tax on a gifted car if the donor or decedent has paid all the tax. However, there should be a gift statement. At least one of the donors must sign the statement, which must indicate the year, make, and identification number.
How do I avoid paying sales tax on a car in Missouri?
There are ways to avoid paying taxes while buying a car in the state. However, you may request an exemption in the following circumstances.
- You already paid the tax.
- The title is from another state.
- A nonprofit organization uses the car.
- You received the car as a gift.
- Following an accident, an insurance company purchased the car.
Check Missouri Form 4298A for a complete list of exclusions and requirements. You can also contact your local government if you have been taxed wrongly.
FAQs
How much is the sales tax on a car in Jackson County, Missouri?
The tax rate you must pay is 11.975%.
What is the sales tax on a car in Jefferson County, Missouri?
The rate is 10.85%.
How much is the sales tax on a car in Boone County, Missouri?
The rate is 9.475%.
How much is the sales tax on a car in Springfield, Missouri?
The rate you must pay is 8.1%.
What is the sales tax on a car in Kansas City, Missouri?
The tax rate you must pay is 10.475%.
How much is the sales tax on a car in Clay County, Missouri?
The rate is 10.85%.
How much is the sales tax on a car in Lees Summit, Missouri?
The rate is 10.475%.
How much is the sales tax on a car in Independence, Missouri?
The rate you should pay is 9.475%.
How much is the sales tax on a car in Lincoln County?
The rate you must pay in Lincoln County is 10.475%.
How much is the sales tax on a car in Republic, Missouri?
The rate is 9.1%.
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