Stay informed and compliant with our Missouri Sales Tax Guide, offering expert insights into compliance, rates, and business regulations.
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| State taxing authority | Missouri Department of Revenue |
|---|---|
| Missouri base sales tax rate | 4.225% |
| Local tax rates | Vary by jurisdiction, up to 8.013% |
| 2023 Missouri sales tax rate | 4.225% to 12.238% with local taxes |
| Tax threshold | $100,000 in annual sales |
| Website | https://dor.mo.gov/ |
| Tax Line | (573) 751-7200 |
The Missouri sales tax rate is between 4.225% and 12.238%, comprising a base rate of 4.225% plus local rates of 0% to 8.013%, depending on the jurisdiction. Some areas have no additional local taxes beyond the state rate.
You can look up the full table of sales tax rates in each city and county in Missouri on the Missouri Department of Revenue's website. Here are a few examples:
| City | Total sales tax rate |
|---|---|
| Kansas City | 8.975% |
| St. Louis | 9.679% |
| Springfield | 8.6% |
To calculate Missouri sales tax, you combine the base rate and the local rate, and then multiply that by the purchase price.
For example, for a $100 taxable purchase in Springfield, where the combined tax rate is 8.6%, the sales tax would be $8.60.
Penalties include a late-filing penalty of 5% per month (up to a maximum of 25%) plus interest. Failure to file Missouri sales tax returns may also result in additional penalties.
Missouri is an origin-based sales tax state, meaning sellers collect tax based on the rate where the sale originated rather than where the customer is located. In destination-based states, tax is based on the buyer's location.
As of 2023, Missouri is not a Streamlined Sales and Use Tax Agreement member.
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Businesses with a significant connection to Missouri, also known as “nexus,” must register for a seller's permit, collect sales tax on taxable transactions, file returns, and remit collected tax to the state. There are two ways nexus is established:
| Type of Nexus | Threshold |
|---|---|
| Physical | Any physical presence in the state |
| Economic | $100,000 in annual sales |
Any level of physical presence creates physical nexus in Missouri, including:
Even short trips by employees or having a storage locker in the state can establish physical nexus and create sales tax obligations. There is no minimum time or activity requirement.
Out-of-state sellers with more than $100,000 in cumulative gross receipts from taxable sales delivered into Missouri during the previous 12 months have economic nexus in Missouri.
This includes online and remote sellers. Once this economic nexus threshold is met, the seller must register and begin collecting Missouri sales tax.
The $100,000 economic threshold took effect on January 1, 2023. Prior Missouri law determined nexus solely based on physical presence.
Missouri marketplace facilitators that exceed the state’s economic nexus threshold are generally required to collect and remit tax on behalf of marketplace sellers.
Missouri affiliate nexus law states that out-of-state sellers are subject to collecting Missouri sales tax if they have ties to Missouri-based businesses who refer sales, solicit orders, or otherwise facilitate the out-of-state retailer's ability to make taxable sales to Missouri buyers.
Missouri broadly taxes sales and purchases of tangible personal property (goods), with some exemptions. Whether a product is taxable depends on how Missouri tax statutes and regulations classify the item.
Sellers must collect valid exemption certificates from buyers to substantiate any non-taxed transactions. Records should be retained for at least three years.
Most grocery food items are taxed at a reduced 1.225% state tax rate in Missouri. Prepared foods are taxed at the full rate.
Yes, clothing purchases in Missouri are subject to the full applicable sales tax rate. There is no broad exemption for clothing.
No, digital products like e-books, streaming media, apps, and software downloads are not typically taxable in Missouri.
No, SaaS and other online services are generally not subject to Missouri sales tax.
Most services are not taxable in Missouri.
There is no general food and beverage tax. However, prepared foods sold for immediate consumption may be taxed at the combined rate instead of the reduced 1.225% grocery rate.
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Registering with the Missouri DOR is the crucial first step before making any taxable sales. Sellers can register online in a few quick steps:
Out-of-state sellers generally must register once they exceed Missouri’s $100,000 economic nexus threshold.
Once registered for a Missouri seller's permit, retailers must charge, collect, report, and remit the applicable sales tax rates on taxable sales and transactions. Collecting, filing, and remitting sales tax are crucial for Missouri business tax compliance.
For sellers located in Missouri, charging sales tax is straightforward. Missouri is an origin-based sales tax state, meaning sellers must collect tax at the rate in effect at the point of sale.
If a Missouri retailer has a single store location, that retailer will charge the combined state sales tax rate of 4.225% plus any applicable county or city rates.
Retailers with multiple locations in Missouri should charge sales tax based on where each transaction occurs. For example, if they were making a sale from their St. Louis store, they'd collect that city's 9.679% combined rate.
Remote sellers with nexus in Missouri but no in-state physical locations have slightly more complexity in collecting the proper tax.
Out-of-state retailers with more than $100,000 in Missouri sales have economic nexus and must collect and remit Missouri vendor’s use tax. Remote sellers may collect only the 4.225% statewide use tax if the delivery location does not impose a local use tax. However, buyers may still owe additional local use taxes in some jurisdictions.
Automated sales tax software helps correctly apply origin-based and destination-based taxes for remote and omnichannel sellers.
Missouri does not tax delivery, shipping, handling, or transportation charges if they are listed separately on the invoice or billing statement.
However, if these charges are included with the total product price, the entire amount may be taxable. To avoid collecting unnecessary sales tax on shipping fees, sellers can list these charges separately.
Properly filing sales tax returns in Missouri and remitting the revenue collected to the state are legal obligations for all sellers with nexus in Missouri. Understanding the filing schedule, due dates, and procedures is important for compliance.
The Missouri Department of Revenue assigns each seller a filing frequency—monthly, quarterly, or annually. This determines how often businesses need to send in sales tax payments and report their taxable transactions from the preceding period.
Due dates are on the last day of the month following the reporting period. If that day falls on a weekend or holiday, the due date is moved to the next business day.
When it's time to file, Missouri sellers must report their gross sales, itemize taxable transactions, calculate total state and local tax due, and remit payment to the Missouri Department of Revenue.
Online filing is required for monthly and quarterly filers, while annual returns can be submitted by paper if necessary.
If a seller misses a Missouri sales tax due date or fails to pay on time, penalties and interest may apply:
Late filing or payment: 5% penalty per month up to 25%
It's critical for businesses to file $0 returns even for periods with no taxable sales. The state requires this to verify ongoing compliance.
Missouri can grant filing extensions for sales and use tax returns if the seller requests no later than one month after the original due date. However, interest still applies to any tax not paid on time.
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Inevitably, some Missouri businesses will face sales and use tax audits by the Department of Revenue to ensure proper compliance. Knowing what to expect and how to contest questionable findings is essential.
Below are the standard steps once a Missouri seller is chosen for audit:
If the auditor's conclusions or tax assessments seem incorrect or unreasonable, sellers should promptly consult an experienced Missouri sales tax professional to determine whether there are grounds for appeal.
Common reasons to challenge audit results include:
Documented appeals submitted through proper Department of Revenue channels can help resolve disputes without needing court proceedings.
For additional guidance on Missouri sales tax filing, audits, and appeals, contact:
There you have it—a comprehensive guide to Missouri's sales tax laws.
Need help filing taxes for your business? Schedule a demo with Numeral to see how we can help.
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