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Missouri sales tax at a glance
Missouri sales tax rates & calculations
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.
List of local sales tax rates in Missouri
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:
Missouri sales tax rates, calculations, and compliance FAQs
How do you calculate Missouri sales tax?
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.
What are the penalties for not paying Missouri sales tax?
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.
What's the difference between destination-based and origin-based sales tax states?
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.
Is Missouri a Streamlined Sales Tax State?
As of 2023, Missouri is not a Streamlined Sales and Use Tax Agreement member.
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Sales tax nexus in Missouri
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:
Physical nexus
Any level of physical presence creates physical nexus in Missouri, including:
- An office, a retail store, a warehouse, a distribution center, or another physical facility
- Employees, contractors, representatives, or agents conducting business in Missouri, even temporarily
- Warehoused inventory or property in the state
- Making deliveries into Missouri with company-owned vehicles
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.
Economic nexus
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.
Marketplace nexus
Missouri marketplace facilitators that exceed the state’s economic nexus threshold are generally required to collect and remit tax on behalf of marketplace sellers.
Affiliate nexus
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 taxable and exempt goods
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.
Commonly taxable goods
- Clothing and footwear
- Furniture and home furnishings
- Medical devices and equipment (some exemptions apply)
- Prepared foods
- Personal hygiene products
- Cleaning supplies
- Pet food and supplies
Commonly exempt goods
- Diapers
- Prescription drugs and medicines
- Specific medical devices (including prosthetics, braces, and wheelchairs)
- Textbooks and other educational materials
- Farm equipment and machinery
Sellers must collect valid exemption certificates from buyers to substantiate any non-taxed transactions. Records should be retained for at least three years.
Missouri sales tax exemptions FAQs
Are groceries taxable in Missouri?
Most grocery food items are taxed at a reduced 1.225% state tax rate in Missouri. Prepared foods are taxed at the full rate.
Is clothing taxable in Missouri?
Yes, clothing purchases in Missouri are subject to the full applicable sales tax rate. There is no broad exemption for clothing.
Are digital products taxable in Missouri?
No, digital products like e-books, streaming media, apps, and software downloads are not typically taxable in Missouri.
Is software-as-a-service (SaaS) taxable in Missouri?
No, SaaS and other online services are generally not subject to Missouri sales tax.
Are services taxable in Missouri?
Most services are not taxable in Missouri.
Food and beverage tax 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 for a Missouri sales tax permit
Registering with the Missouri DOR is the crucial first step before making any taxable sales. Sellers can register online in a few quick steps:
- Visit the Missouri Department of Revenue registration page
- Provide business identification details, ownership structure, products sold, and projected revenues
- Submit the registration form and fee payment
- Collect sales tax on future taxable transactions
Out-of-state sellers generally must register once they exceed Missouri’s $100,000 economic nexus threshold.
Collecting sales tax in Missouri
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.
Collecting tax as a Missouri retailer
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.
Collecting sales tax as an out-of-state seller
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.
Should you collect tax on Missouri shipping charges?
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.
Filing and paying Missouri sales tax
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.
Filing Missouri sales tax returns
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.
Penalties for late filing or non-payment
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.
Sales tax return extensions
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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Missouri sales tax audits and appeals
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.
Missouri sales tax audit process
Below are the standard steps once a Missouri seller is chosen for audit:
- Notification: The business receives an audit notice from the Missouri Department of Revenue. A pre-audit questionnaire may be requested.
- Information Request: The auditor asks for access to records, sales data, exemption certificates, bank statements, tax returns, and other files.
- Examination: The auditor compares filings to bank deposits, exemptions, and other records to identify unremitted tax liabilities.
- Audit Report: The auditor’s preliminary findings outline areas of disagreement and additional tax assessments.
- Appeal: Businesses can contest audit results by submitting additional documentation within 30 days. Further appeals are possible.
Contesting audit findings
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:
- Legal misinterpretation
- Procedural errors
- Unfair or incomplete examination
- Exemptions supported by valid certificates
Documented appeals submitted through proper Department of Revenue channels can help resolve disputes without needing court proceedings.
More Missouri sales tax resources
For additional guidance on Missouri sales tax filing, audits, and appeals, contact:
- Authority: Missouri Department of Revenue
- Phone: (573) 751-7200
- Website: https://dor.mo.gov/
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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